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I need advice! What should I do?


llmask

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I want to get the Obsidian Black Legacy GT. here are some things to know: -I will be eligible for VIP pricing on Dec 2004 -I have a 02 Lancer that I want to trade in - current offer from one dealer is 6k -cheapest rate to finance is 3.5% at my bank questions: -should i wait for dec for the VIP price? -if so, that means my Lancer value will go down -and the loan rate may go high, or low - who knows? -maybe subaru will have some special finance rate when dec comes? ARGH! so much variables! the urge to get it is KILLING me! any advice? what would you guys do in this situation? :oops:
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What is VIP pricing? If you want to get rid of the Lancer, why keep it for another 6 months making payments on a depreciating car. Do you want to pay another $1500 on a car you don't even want? That is money down the drain. Then you are going to lose probably another $500-1000 on the trade-in. Unless VIP pricing is something really incredible I would say go for it now. Use [url]www.vanbortelsubaru.com[/url] as a guide to what the going rate for a Subaru should be. No car is an investment but you don't have to throw good money at a situation you don't want to be in (driving the Lancer).
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Where are you? In Maryland, Fitzgerald is now selling Legacies at invoice, which would be the same as VIP pricing. I'm sure there are other dealers around who are doing the same. How much do you think your Lancer's value will decline in six months? Odds are loan rates will be slightly higher in six months; what Subaru offers as a special rate is unpredictable. What if you went to your dealer and said "You can sell me a car at invoice now or I'll be back in six months to buy at invoice with VIP pricing." Maybe they'll make the sale now. (However, VIP pricing includes a payment from Subaru to the dealer, so if they sell at invoice to you now they'll make less money.)
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VIP pricing is pretty incredible. Dealer invoice on the car and all installed options without any hassle. If you want the LGT now, you should try a fax campaign to the fleet dept. of a bunch of local Subaru dealers (all but one) to see how close to invoice they are willing to go. Some people have reported $200 above invoice. I think with the VIP program, SOA kicks $500 to the dealer. So, if you play your cards right, you may be able to work out a deal for $500 above invoice. If that's the case, then go for it. Also, you might want to try to private sell the Lancer to get a little more out of it than the trade in.
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[quote name='SC GT'] Also, you might want to try to private sell the Lancer to get a little more out of it than the trade in.[/quote] trading in the car works better cuz its pretax. a trade in car for 6K will save me more $ than me privately selling the car for 7500. also, i didnt know that subaru gives 500 to the dealer with the vip program. hmmm. ok thats it. im sold. i will buy one in a month. watch me. WATCH ME!! :D im in the nyc area btw.
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[quote name='llmask']I want to get the Obsidian Black Legacy GT. here are some things to know: -I will be eligible for VIP pricing on Dec 2004 -I have a 02 Lancer that I want to trade in - current offer from one dealer is 6k -cheapest rate to finance is 3.5% at my bank questions: -should i wait for dec for the VIP price? -if so, that means my Lancer value will go down -and the loan rate may go high, or low - who knows? -maybe subaru will have some special finance rate when dec comes? ARGH! so much variables! the urge to get it is KILLING me! any advice? what would you guys do in this situation? :oops:[/quote] I was in the same boat as you are three weeks ago. To get my XT I chose to pay a little bit more for the car and trade my 01 OB for KBB. FWIW my 01 OB depreciated $200 according to KBB over a 2 week period! Had I kept it til DEC Lord knows what it would be worth. Also, I needed brakes.
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Also depends on how long it is going to take for the vehicle to be available. Here in Oz there are saying that the vehicle could take up to two months. Therefore, if u wait till Dec04 for the VIP pricing, what ever that is, you may not get the car till Feb meaning your current car will loose further value. Dont look upon this as a bad thing though as u will be getting a MY05 with MY05 specs or sell yr Lancer now, get the good rate from the bank as this may increase if there is another interest rate rise, get a MY04 with MY05 specs and yr still in front. Whatever way you slice it, you are going to be out of pocket. And they say buying a new car is fun, yeah WHATEVA !
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VIP Program is a deal that Subaru offers to members of various groups, mostly having to do with canoeing, mountain biking, skiing, kayaking, which lets members buy Subarus at invoice. You have to be a member of the group for six months. The American Subaru website (Subaru.com) has details. Don't know if it's offered in Canada.
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[quote name='llmask']trading in the car works better cuz its pretax. a trade in car for 6K will save me more $ than me privately selling the car for 7500. [/quote] Are you sure? That would indicate that the total tax on New Cars where you live is 25%?
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[quote name='llmask'] trading in the car works better cuz its pretax. a trade in car for 6K will save me more $ than me privately selling the car for 7500. [/quote] I don't get this. Are you saying that if you sell privately you're supposed to report the sale price as income on your tax return?! That doesn't sound right. Or are you saying that with a trade-in you save sales tax because you're only taxed on the difference between the new car price and trade-in value? The latter wouldn't be that significant. Edit: sorry RICK I didn't see your post when I posted this.
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[quote name='"gurpman"'][quote name='llmask'] Or are you saying that with a trade-in you save sales tax because you're only taxed on the difference between the new car price and trade-in value? The latter wouldn't be that significant. Edit: sorry RICK I didn't see your post when I posted this.[/quote] Yes that's what he means. By trading in the car for $6k he's deducting the said amt from the purchase price of the L, which translates to an "additional" $517.50, as the sales tax in NYC is 8.625%.
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[quote name='"Two-Five Sti-L"'][quote name='gurpman'][quote name='llmask'] Or are you saying that with a trade-in you save sales tax because you're only taxed on the difference between the new car price and trade-in value? The latter wouldn't be that significant. Edit: sorry RICK I didn't see your post when I posted this.[/quote] Yes that's what he means. By trading in the car for $6k he's deducting the said amt from the purchase price of the L, which translates to an "additional" $517.50, as the sales tax in NYC is 8.625%.[/quote] Hey, that $500 savings could be for ICE. or gas, or loans, or bills, or..... :lol:
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[quote name='llmask'] questions: -should i wait for dec for the VIP price? -if so, that means my Lancer value will go down -and the loan rate may go high, or low - who knows? -maybe subaru will have some special finance rate when dec comes? ARGH! so much variables! the urge to get it is KILLING me! any advice? what would you guys do in this situation? :oops:[/quote] If you can get $500 over invoice or better, not difficult to achieve, then get it now. Considering there is a chance of the supply may get scarce, good interest rate, and above all, you get to drive a new car much earlier. It is a no brainer.
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FYI - the website is [url]http://www.vip.subaru.com/[/url] but without a passcode you can't gain access to request a VIP certificate. As some mentioned, it's generally available thru your employer as an employee benefit. Works exactly like the Ford/Volvo/Mazda X-plan. The VIP allows you to purchase right at dealer invoice with no haggling. My company does offer this, and you have to specify a particular dealer from whom you intend to purchase a car thru. Ergo, if you can negotiate your Legacy (or any other Subie) purchase at invoice on your own, there's no real benefit to the VIP program. Having a haggle-free buying experience is nice though.
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