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Discussion Starter #1
Heya guys,

Long time lurker, first time poster. I'm looking at purchasing an STi about May or June of this year. I just received a job offer (graduating this spring) and cannot WAIT to pick up this car.

Anyway, my question is in regards to financing. I'm going to go through my works credit union as I know I can get a good rate through them, but I'm curious as to when I should go ahead and apply for my loan. Right now I'm making about half of what my salary will be when I start my new job, so if I walk in right now and put down my current income, I think my chances of qualifying would be hurt (just for reference I'm 21, good credit hopefully :wink:) as they might not think I make enough to cover monthly payments. However, I'd like to get everything ready early so I could have the dealer put me on the list so there is no wait time when I'm ready to pick up the car. I suppose I could also talk to the loan adviser and explain my situation and I'm sure they could work with me.

I suppose I'm just getting too excited too early but as I said, I'd love to be able to have everything ready for delivery as soon as I start my new job. The next few months are going to be spent saving every penny so I can put down about $6000. Anyway, what do you guys think? Is it too early to get the ball rolling or should I just go for it and see what the credit union says?

Also, have any of you guys purchased the extended warranty? Curious if it is going to be worth another $2000 up front.
 

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4 year warranty was 1200 for me.

get on the waiting list whenever you're ready.

You'll need to ask your credit union about loan dates... but most places can get you approved instantly on-line, or at least by the next day. Depends on the bank too, some require you have a VIN for the vehicle you want, while others don't. I got my financing approved at 4.19% at E*Trade in a couple hours even without knowing where or what iw as buying. BankOne needed a VIN and wanted over 6%. But of course, the dealer got me approved for 3.15% while I was there. It's good to secure loan from your union, but be prepared to use that as a negotiation point as well. Subaru may beat their loan if it will make you more willing to buy from them, and my friend just got 1.9% on a wrx.

Also, if you know you have a new job, you might be able to put your income for the new job on the application, just ask the person you talk to at your credit union.

You may also want to get a credit check, see waht score you get and also see that your history is in order. If there's any problems, you'll have time to address them before you apply.

here's my story: http://asiandisco.basementproductions.net/sti/how_to_buy_an_sti.shtml
 

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Discussion Starter #3
No dealers close to me are selling at invoice or below..help

Thanks for the tips!

I just found a link posted in another thread about Carbuyingtips.com so I'll be reading their advice as well.
 
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Petter wallpaper

If you have 6k to put down, that will look really good to the lender. Also, you might get your parents to cosign if you have a good relationship with them. My father cosigned for my first car and after paying it off in half the time, I've never had any trouble getting a loan since, :)
 

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I have 9K to put down, does that look ok?
 

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The more you put down the better it looks... and it also means less risk for them (in terms of loan amount) so they'll be more willing to give it to you.

what is your monthly payment and length of loan targets? If you want to be real geeky, I suggest you do all the math yourself using the interest/payment calculator on Subaru's site. Figure out what your monthly payments will be if you finance with 6k, 7k, 8k, 9k down or whatever is possible. Also figure out how much it will cost if you pay MSRP, 1000 off, 2000 off or invoice. Also figure out how much if your loan is 24, 36, 48, 60 or 72 months. Also keep in mind that sales tax will probably be added to the amount of your loan. This will give you an idea of how much you're going to be paying in interest and how much you are negotiating.

I did all this... and I'm so geeky that I put it into an Excel spreadsheet that automatically calculated it all for me. Hmmm... now where's my pocket protector?
 

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madpeon said:
Also, have any of you guys purchased the extended warranty? Curious if it is going to be worth another $2000 up front.
I got one through my credit union that is refundable if I don't use it and tranferrable if I sell the car.
 

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yeah, it all depends on how much you will be able to get financed for. im am only 20, but i have very good credit with a beacon score of 720. im only putting $1k down. loan will take care of the rest.

Kyle R
 

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Discussion Starter #9
I'm in the same boat. My credit score is 725 and I'm 21. My dilema is now whether I should wait to come up with the 6k downpayment or if I should finance close to 100% and get the car now. Any opinions? I can afford ~$800 a month for car payment + insurance. My rates are going to be about 180-200 a month for insurance so I think it'll be cutting it close if I don't put down more than a few thousand for a downpayment.
 

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Putting anything less than 20% down is a poor financial decision, IMHO. That car will start to depreciate the moment you drive off the lot. Suppose you want to trade/sell the car for the '06, or whatever, you will lose a hefty bit of dinero because you didn't cover your depreciation costs at purchase.

Yes, low interest rate on the loan is important, too, but it would be a better choice to wait until you have at least 20% for a down, I did, no matter how much you, "have to have it".
 
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