Whats the deal with financing offers?

[dg]

It occurred to me that the financing offers that Subaru advertises are most
likely not financed through Subaru, but are through a bank that you could
get a loan from without going through Subaru. For example, when I bought my
Ford, it was financed through Wells Fargo Bank. When I talked to my Subaru
dealer about a new Subaru, he mentioned one of the local Credit Unions doing
the financing. So, whats the story on financing? Do the banks make special
promotional deals with Subaru, or can a guy get those rates even after
Subaru stops their promotion?

Thanks,
--Dan

 

[Paul Pluzhnikov]

it's my impression that for promotional purposes Subaru "eats" the
interest charged by the actual bank that provides the loan.

Perhaps. Or the bank hopes to make their money back once promotional
period ends and you start paying the interest ... Perhaps the
interest is a bit higher than the current maket rate?

You'll never
find a bank willing to loan you money at zero percent

Well, in paying off my wife's credit card debt, I had already
found and used 3 separate banks willing to lend me $10K at 0%
for a year. Never say never?

Cheers,

 

[Jason]

It occurred to me that the financing offers that Subaru advertises are most
likely not financed through Subaru, but are through a bank that you could
get a loan from without going through Subaru. For example, when I bought my
Ford, it was financed through Wells Fargo Bank. When I talked to my Subaru
dealer about a new Subaru, he mentioned one of the local Credit Unions doing
the financing. So, whats the story on financing? Do the banks make special
promotional deals with Subaru, or can a guy get those rates even after
Subaru stops their promotion?

Thanks,
--Dan

I got my 1.9% APR for 3 years through Chase Manhattan Bank when I
bought an '03 Forester.
What really bugs me about Subaru's recent financing is that they keep
extending the offer by a few months. I remember when the low APR
offer was only good till April, then July, and now September. So you
don't really know if you have to act now to buy, or can wait a few
months.

 

[Dominic Richens]

Well, in paying off my wife's credit card debt, I had already
found and used 3 separate banks willing to lend me $10K at 0%
for a year. Never say never?

Wha?! What's the catch? Why I could get 10K$, put it in a 3% ING savings
account and have a free 300$ by the end of the year! Get my wife, my kids,
my dog etc... to do this as well and I'm be rich!

 

[JaySee]

Wha?! What's the catch? Why I could get 10K$, put it in a 3% ING savings
account and have a free 300$ by the end of the year! Get my wife, my kids,
my dog etc... to do this as well and I'm be rich!

Lending fees that end up 1-3% anyway.

 

[Paul Pluzhnikov]

I don't know. Perhaps they hope that I will not pay it off, or that
I will be late (and they'll start charging 20%)?

Yes, you could do this. Don't know if it is worth the trouble
of opening yet another credit account. Also, ING has only been
paying 2% recently.

Lending fees that end up 1-3% anyway.

Most of the 0% offers do have a 3% (up to a maximum of $50) balance
transfer fees and are only for 6 month, but some don't have any
fees and last 12 or even 15 month (they are the ones I used ;-)

The "good" offers only come about once a year (exactly when I need
them , the "not so good" ones -- 5 every day :-(

Cheers,