Subaru BRZ Forum banner

First time new car buyer - finance options???

2K views 3 replies 3 participants last post by  RanBrz 
#1 ·
hey guys..

This is the first time I will be a brand new car buyer. My BRZ is expected in April.
I am financing it. The car is also going to be my first big bank credit. Apart form paying regular electricity, phone bills and paying balances on time I have't used my credit card on anything even remotely close to this. The dealer is offering me finance through Chase bank. I really don't know what the interest rate it is going to be but I am pretty sure it is going to be huge.

And honestly I have only little cash in my bank, so couple tens or hundreds of dollars make a huge effect to me.
I have decided to put 5K as down payment.
Few of my buddies suggested me to go with credit union auto loan. They say it provides very low interest rates.

I am new to all this. Would you like to suggest me any good options related to financing?

Thanks!
 
#2 ·
It sounds like you have a good handle on the situation. Right now the APR with SOA (Chase) is 2.9% which is high compared to credit unions. Definitely go with a credit union, and check out the lowest APR rate. What you now need to figure out is how long you want the term to be, like 5 years, 6 years etc. Generally 48-60 months is the lowest rate. Just make sure you have good credit when you apply for the loan in April, because that will determine if you qualify for the low APRs. Navy Federal Credit Union is great and has low rates. There are many others, do some CU shopping and put 5k down, finance the rest with a good CU and get a loan for 4-6 years, and you will be in business.
 
#3 ·
I discovered that Credit Unions usually require you to have 500 deductable for comp & collision auto insurance. Subaru finance (which goes through Chase) allows you to have a $1000 comp and collision deductable. Having to carry $500 deductable compared to $1000 can more than make up the difference in the total annual expense associated with your BRZ payment between the combination of financing costs and auto insurance.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top