Subaru Ascent Forum banner
1 - 20 of 35 Posts

·
Registered
Joined
·
21 Posts
Discussion Starter · #1 ·
Anyone have a source or info on if Subaru might offer a better financing rate on the 2019s once the 2020s come out?

3.49% doesn't excite me much...
 

·
Registered
Joined
·
1,312 Posts
The Federal Reserve announced in December that it is lowering it's Federal Reserve interest rate hike 2019 projection to 2 increases. However, even two increases in the Federal Reserve interest rate would indicate that auto finance rates are going to go up, not down. So if you don't like the current 3.49% Subaru rate, it's going to be even hard for them to offer anything less in 2019.
 

·
Registered
Joined
·
21 Posts
Discussion Starter · #3 ·
The Federal Reserve announced in December that it is lowering it's Federal Reserve interest rate hike 2019 projection to 2 increases. However, even two increases in the Federal Reserve interest rate would indicate that auto finance rates are going to go up, not down. So if you don't like the current 3.49% Subaru rate, it's going to be even hard for them to offer anything less in 2019.
I was thinking more like a 0% promo rate, not auto rates in general.

I'm a new convert to Subaru, so I'm not sure how often or how predictable their 0% offers might be.

I probably won't wait to place my order, but I was curious if anyone had any thoughts on the likelihood of a 0% offer on 2019 Ascent in the near future (like maybe when the 2020 is released).
 

·
Registered
Joined
·
1,312 Posts
If Subaru is charging 3.49% right now, it's unlikely they're going to offer 0% after the Fed raises interest rates in 2019.

Additionally, the Ascent is a hot seller, over 47,000 have been sold so far and the factory is capped at 60,000 units per year so I don't see much incentive for Subaru to offer a 0% loan to Ascent buyers.

My guess only, you never know.

I would think your best bet is to work on a great deal which would pay up front for interest fees. Many here have been getting 2% under invoice. Not sure how long that'll last now that the Ascent is a hot seller.
 

·
Registered
Joined
·
559 Posts
Don’t get greedy. Ascents are selling really well beyond Subaru’s expectations it seems. Interest rates will continue to rise. As inventory declines dealers will be less willing to negotiate deals. If you want one and can find a good deal, I say grab it now because it will cost you more in the future.
 

·
Registered
Joined
·
21 Posts
Discussion Starter · #7 ·
Don’t get greedy. Ascents are selling really well beyond Subaru’s expectations it seems. Interest rates will continue to rise. As inventory declines dealers will be less willing to negotiate deals. If you want one and can find a good deal, I say grab it now because it will cost you more in the future.
The interest savings would actually be worth more to most people than the 2% under invoice if you do the math. I was simply wondering if I should be more patient for the interest savings to be available than to take the deal I currently have working (actually a little better than 2% under invoice).
 

·
Registered
Joined
·
764 Posts
The interest savings would actually be worth more to most people than the 2% under invoice if you do the math. I was simply wondering if I should be more patient for the interest savings to be available than to take the deal I currently have working (actually a little better than 2% under invoice).
The financing and the quoted sales price are coming from two completely different sources. Pricing is from the dealership. Financing is from Subaru of America.
 

·
Registered
Joined
·
559 Posts
The interest savings would actually be worth more to most people than the 2% under invoice if you do the math. I was simply wondering if I should be more patient for the interest savings to be available than to take the deal I currently have working (actually a little better than 2% under invoice).
If you wait for the next model year there will undoubtedly be a price increase. Whether Subaru of America offers a subvented loan rate in the future is anybody’s guess.

I’m just saying that in the face of rising sales and rising federal funds rates, my bet is you’ll get a better deal now. I hope I’m wrong and you get the rate you’re looking for.
 

·
Registered
Joined
·
561 Posts
Pinch those pennies and pay cash. Should be able to get 8-9% off
 

·
Registered
Joined
·
646 Posts
Pinch those pennies and pay cash. Should be able to get 8-9% off
Dealers don't care about cash that much. They're getting a bit back from the financing company plus getting your purchase price up front when you take a loan.

As rates creep up to 4% and higher it almost makes sense but mutual funds are 8-10% annually average so why would you pay cash?
 

·
Registered
Joined
·
21 Posts
Discussion Starter · #12 · (Edited)
The financing and the quoted sales price are coming from two completely different sources. Pricing is from the dealership. Financing is from Subaru of America.
Yes I'm well aware of that. That's why I was considering whether I should wait to see what incentives might be coming down the pike that the dealership isn't aware of/doesn't have available yet.
 

·
Registered
Joined
·
21 Posts
Discussion Starter · #13 ·
If you wait for the next model year there will undoubtedly be a price increase. Whether Subaru of America offers a subvented loan rate in the future is anybody’s guess.

I’m just saying that in the face of rising sales and rising federal funds rates, my bet is you’ll get a better deal now. I hope I’m wrong and you get the rate you’re looking for.
I was thinking the promo rate might come out on the older model year, so while maybe the new model year might come with a price increase, I was still thinking I'd take a 2019 model.
 

·
Registered
Joined
·
1,312 Posts
Dealers don't care about cash that much. They're getting a bit back from the financing company plus getting your purchase price up front when you take a loan.

As rates creep up to 4% and higher it almost makes sense but mutual funds are 8-10% annually average so why would you pay cash?
Wow, if you're getting a steady 8-10% annual return in your mutual funds in this roller coaster market, I need to invest in whatever you're doing! :smile:
 

·
Registered
Joined
·
646 Posts
Wow, if you're getting a steady 8-10% annual return in your mutual funds in this roller coaster market, I need to invest in whatever you're doing! :smile:
Nothing about steady year to year, look at 5 year averages though. There's always short term risk but I'd rather leave the investments alone than to squander the investment to pay cash for something that will only depreciate over the life of the loan and have to build up the "war chest" again.
Even if the interest is equal and you get in a bind you will always have that money to pay the car off at the end of the day.
Would you rather pay some interest over the loan, $4500 on 40k @ 3.5% for 6 years, have $50k at the end of that 6 years @ 3.5% (65K @8%) and have the car or pay cash and have to save $620/month @ 3.5% to get back to your original balance when the loan term would be up?
I'll keep cash on hand all day.
Obviously if you're unable to afford a $600 car payment or will spend the money on something else you pay cash.
 

·
Registered
Joined
·
932 Posts
From what I've seen them do in the past, it seems like a few months after the new year model hits the lots they tend to decrease the APR. But what it goes down to is your guess... I've seen them go to 1.49%, or 0.9%, or even 0% in some cases depending on the model. For example, the Forester just got a refresh this year, so it makes sense they want to get rid of the 2018's ASAP before they have some that get stuck on the lots.
 

·
Registered
Joined
·
1,136 Posts
Subaru is presently offering 0% financing on their 2019 Outback, so it could be possible. Subaru does not want inventory to stack up on their lots with the new redesigned 2020 Outback coming soon. Financing like that probably won't happen on the Ascent for awhile.
 

·
Registered
Joined
·
118 Posts
If you wait for the next model year there will undoubtedly be a price increase. Whether Subaru of America offers a subvented loan rate in the future is anybody’s guess.

I’m just saying that in the face of rising sales and rising federal funds rates, my bet is you’ll get a better deal now. I hope I’m wrong and you get the rate you’re looking for.
Substantial price increase? Few hundred dollars?
 
1 - 20 of 35 Posts
Top