I contacted Subaru of America this morning because I planned to put a deposit on a 2025 Subaru Outback. The representative took my details and said I would hear back in 48 hours. Later, they called around 6:15, but I missed the call. I checked my email and found a message stating they reviewed my details and would send me a loyalty coupon worth $750. This will reduce my car price by $4750 off the MSRP. I should receive the email with the coupon in 24 to 48 hours, just in time for my Thursday appointment to pick up my new car.
Here’s a tip I got from my SOA contact when they granted me my coupon – don’t mention the coupon right away. Dealerships aren’t the same as Subaru of America; they want to make as much money as possible. If you tell them you have a $750 coupon right away, they’ll adjust your deal with that in mind.
If you wait until the end:
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They HAVE to accept it since it’s from SOA and they can’t deny it, BUT
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It doesn’t cost them ANYTHING – it’s just money they would get from you anyway.
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They didn’t offer me a deal I hadn’t already been promised. They don’t lose anything, only the chance to make more from you!
Do what feels right to you, but I waited until the end and the finance guy looked frustrated (that’s how I knew I got a good deal!).
I’m not trying to be negative, but car sales are tough for buyers. I don’t feel bad about using every rule to make the deal better for myself!
@Keats
I’m stuck on whether to wait until that day. I once used a $1500 coupon at a dealer. I told them after I received my price but before I got there to sign the papers.
What else should I be aware of that goes into the ‘deal’? I want to ensure I secure the 2.9% financing before telling them. Should I ask about that before I go to sign? I told the guy I wanted to finance if I could get the 2.9% and today they said I was approved, but they didn’t confirm the 2.9 specifically.
@Vern
You should always know your credit score (FICO, and FICO Auto if you can) before walking into a dealership. For the best subsidized rate (like the 2.9 here), you’ll usually need A-tier credit, which is around 720 or better. You should also have clear payment terms with a trade value, down payment, and financing conditions.
When I bought my Outback Wilderness, the F&I person tried an old trick on me. She came in and said, ‘Here is your payment, now sign over your trade title.’ I told her I wouldn’t sign anything until I got the details (the payment she gave me was way too high). It turned out she had me at an interest rate 2% above the Subaru subsidized rate. I told her I wasn’t paying that because I qualified for the subsidized rate. She disappeared for a bit and came back saying, ‘Oh, your credit is good; I don’t know what happened before.’
What really happened was she was shopping my loan to a lender she liked. Anything above what I qualify for is money the dealer keeps. She assumed I didn’t know my credit or finance terms, or that I wouldn’t pay attention.
She was wrong.
@Tilden
I have an 805 credit score, so I hope they approved me for 2.9%. I plan to confirm that today. I felt something similar happened to me last time when I thought I’d get promotional financing, but they came back with a higher rate and I hesitated to ask about it.
@Vern
With an 805 credit score, you’ll get whatever you want! Congratulations!
@Vern
If you’re over 800 (use the FICO model, not Vantage or any of those other misleading ‘credit scores’), you’ll get the best rate available.
If they come back with anything other than the best Subaru subsidized rate, tell them you’re leaving and watch how quickly they fix it.
@Tilden
I was 796 on Experian, 803 on TransUnion, and 813 on Equifax. Fingers crossed it’s enough.
Vern said:
@Tilden
I was 796 on Experian, 803 on TransUnion, and 813 on Equifax. Fingers crossed it’s enough.
No doubt that’s good enough! The very highest tier of credit scores for car loans starts around 720 - 750, so you’re well beyond that.
@Tilden
I asked the sales guy about the loan details and, finally, I got an itemized breakdown. Before, he just showed me the total price. Next time, it was just the taxes, doc fees, and other fees.
When I asked for the interest rate, I said I wanted to know what it was to avoid surprises. He got back to me with 2.9%.
I think I’ll give them a heads-up on Thursday morning about my $750 coupon. I’d rather not wait too long in the dealer’s office redoing paperwork. I still haven’t received the coupon in my email. The email they sent me last night at 6:18 pm said it would arrive in 24-48 hours, so it should show up by tomorrow evening.
@Vern
Awesome!
Just check the loan math here:
https://www.edmunds.com/calculators/simplified-pricing.html
This calculator should be accurate within a few dollars.
You won’t need to wait for them to redo anything because they won’t process the loan paperwork until you’re there to sign it. It’s really just a ‘fill in the boxes’ form on their end.
@Tilden
That’s good to know. Is it a big deal to change my down payment? I’d be willing to put a bit more down if needed. The sales guy asked me about it on the phone and said he needed that for loan approval. But now I think I want to increase it to lower my monthly payment.
@Vern
This comment is empty, admin should fix
@Vern
I got approved for the 2.9 too and my credit score was way lower than yours.
@Vern
I suggest getting pre-approved from a local credit union. That will give you a baseline they must beat if they want to finance your car (hint: they want to sell you a car but prefer you to finance it through them!).
Don’t tell them that you have financing right away; say how you pay will rely on the deal they offer. You can mention you’re considering financing but have a pre-approval from your credit union (they might ask for details, but just say you’d like to keep that to yourself unless their deal makes you need to share it).
It’s okay to make them compete for your business! There are many trick methods they use to get you to focus on things like interest rates or monthly payments (my favorite!). Don’t get distracted! Keep asking for an ‘out the door’ price that isn’t tied to any specific financing. Get that in writing, then ask, ‘What can you do for financing?’. Be honest with them and share your pre-approval details. If they beat it, then they did well by you.
Buying a new car is tough because I dislike playing these games, but I saved at least an extra $3500 on my purchase by going through this. I also wanted an extended warranty, which they tried to mark up due to my deal, but I pushed back hard to lower that price – they didn’t go as low as I wanted, but they got within $500, and I chose not to push that issue since the deal was really good overall.
Good luck! Stay firm! They want to sell you a car, but they’ll try to squeeze the most from what you’re willing to give!
@Keats
The best rate my credit union offers is over 5%. Subaru has a 2.9% deal.
Vern said:
@Keats
The best rate my credit union offers is over 5%. Subaru has a 2.9% deal.
That’s a bummer! I got 1.9% from a local credit union, but I know that can vary a lot. The 2.9% is still a great rate!
@Keats
You got 1.9% recently?
I should have mentioned - that was almost a year ago. Sorry about that!
@Vern
What you need to do is have them write up the whole MVPC agreement and send it to you without visiting the dealership. Request an actual written itemized document instead of an ‘out the door’ quote. Then you can make a counter-offer. They will definitely try to recover any deal pricing on the backend or sneak it in somewhere. They may add extra fees, add-ons, or increase the price of warranties to trick you. Most dealerships will be eager to sell a car off their lot, even at a loss. Keep that in mind.