Ok here it goes.

I am 23 years old, I have a great job (in my opinon). I am looking to buy a new car. I have NEVER bought a new car, i have only bought used. Also, financing the car should help my Credit.

I am looking to buy an 08' Subaru Legacy GT Sedan.
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Priced out on Subaru's website, i got this quote
LEGACY - 2.5 GT Limited
Exterior: Diamond Gray Metallic
Interior: Off Black Leather
Transmission: Automatic 5-speed with SPORTSHIFT and VDC

Base MSRP* $28,295
Transmission $1,500
Packages $0
Accessories $0
Destination & Delivery $645

Total $30,440
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I contacted almost every dealership in my area, the best offer i recieved was this :
The 2008 Legacy GT LMTD with exterior color of Diamond Gray metallic and off Black Leather with automatic 5 speed with Sport Shift and VDC-$28,636.00 and minus the $750.00 rebate is $27,886.00 plus your New York State Sales Tax in your area, $45.00 Doc Fee, $12.50 Tire Fee, $10.00 Inspection Fee and DMV is extra. The programs on the Rebates change on April 1st. so w/ taxes, that is about $29,XXX
There is a special APR rate (along w/ the 750 rebate) that expire on tuesday. The rate i would get (if a apply) would be 3.9% for 60months. The monthly would be about $4xx.00 (if i put down 5,000)

My questions are
1. does this seem like a good price (i dont know anything about negotiating w/ new cars)
2. is it worth getting an extended warentee (it is a turbo)
3. This is an important one, since i am under 25, insurance would be expensive for me. I am currently driving under my parents insurance. If i was to buy the car, how can it be put under their insurance? (i would probably need them to co-sign on the Loan). *i need it to be the one buying it, to help build credit etc...
4. Am i stupid for feeling I need to buy the car before tuesday (to get the special offers - 3.9%apr and 750 rebate)?
5. How much should i put down, is it worth putting down $5000?
6. Since i dont have anything bad on my credit, but nothing really good on it, what is the chance that i will qualify for this rate?


Any advice would be very much appreciated.

Thank you,
-J

 

Off the top of my head I am trying to figure out why your monthly would be $600 if you put 5k down at 3.9%. Can someone else help? I don't think that adds up, not for 60 months.

J, have you tried getting auto financing through your bank or credit union first. This way you are pre-approved and have a blank check and you already know what your payments etc are, you just need to pick a car.

I love the Subie Legacy GT but they are not selling very well so dealers should really be fighting for YOUR business.

As for the extended warranty, well how long do you plan to keep the car?

Now since you are buying the car in your name, you will have to provide proof of insurance. Now when the time comes, you CAN tell your insurance company you bought the car for your mother or father and they are the primary drivers. Depends on your insurance company.

5k down is 20%, a very good lump in the eyes of creditors and it does lower your monthly payment.

Good luck!!!

 

sorry. when i put the rate down, i meant to put (i want to keep my payment below 600)
i think the monthly would be about $433

Thanks

-J

 

I can help answer #3. If you are going on your parent's insurance, they MUST be on the title and have ownership. If you buy this car on your own, you need to get your own policy.

Then, many banks will require any owner to have liability also. So, your parents would have to be on the loan with you also.

Check everything before you sign on the dotted line. I work in the auto finance business and I see too many folks like you who buy the car and then find out afterwards that they cannot remain on their parent's policy because their parent is not on the paperwork.

Good luck

 

As to #6, it depends on how much credit depth you have on your credit bureau and what your FICO score is. If you are a first time buyer, you may not qualify for the special rate. Maybe having your parent cosign would help? Depends on the qualifications and what your bureau looks like.

I am also sure that there will be incentives in April on this car. If experation dates were 3 months out, there would be no urgency on the customer. Dealers want sales today! So, in my opinion, don't rush just because some special ends on 3/31

 

Nice. When people ask what kinda car to buy, I always say Subaru Legacy and usually get a confused response as to "what is that?" or "I thought that was a Camry" or "Why would I want one of those"

They're great cars. Im on my second, no major problems and Im at 100k miles. The '05s and '06s were having a studdering issue. However, I think they got that cleared up for '08. Other than that the biggest complaint I hear is dash rattles, but again that may be another thing they have cleared up because people complained.

They are fast, but not the most fuel efficient, at least the GTs and 3.0Rs arent anyway. The MT owners report from 26-28 hwy mpg, but the AT owners claim btw. 23-26 hwy. If you can wait for the 2010, which it doesnt look like you can, the Legacy will be a little bigger and supposedly direct injected to boost power output and fuel economy.

Subaru also does good year end clearence events which begin in May I believe.

LegacyGT.com has alot of useful information as well as a diverse array of Subaru owners.

 

Well when do you need the info by? I dont have the forumla with me, but given your APR I can calculate base on your monthly how much you will be paying (ripped off) when your 70 month is due and also base on if you pay exactly 29,000 (70 months later) how much your monthly payment would be with your APR for 70 months

I can get it for tmrw when I get my text book back from my car lol

 

I am an insurance agent, and this is not always true. It depends on INs company, sometime depends on specific agent.
For me, I don't require that.

 

I'm with 1SICK, $600 a month with 5K down sounds a little high for the conditions you describe. I would also forgo the extended warranty, at least for now. Subarus are generally reliable, and if you break in the engine and turbo properly and don't abuse it later on, even the turbo should last awhile, if not the life of the engine. But, if you do want the turbo covered for more than the standard 5/60 drivetrain warranty, you can change your mind later and add it (I think within the first 3 years)......you don't have to get it when the car is brand-new.

 

Well as you guys predicted, the incentives rolled over to the next month. Now i need to hear back from the other dealers and see what offers i can get.



-J