Reserved New WRX - The Long Wait Begins!

[john_pifer]

2016, Base model, 6MT. Should be here next week or the week after.

It was a pretty easy choice - I've always wanted a performance car, and never had one. Closest I've had was a 1987 Maxima that I had back in the late 90s. I thought it was a pretty fun car, but it wasn't fast.

I don't give a flip about AWD - the fact that the car has it is incidental. I'd honestly rather it was RWD. Less complexity & weight. However, I prefer AWD with a 50/50 torque split like this car has, to a FWD setup.

I say it was an easy choice because there's not really another car that offers this level of performance at this price (I don't like FWD). I also don't like boulevard-cruiser pony cars (Mustang, Camaro, Challenger). Being from a sportbike background, I like a car that corners well.

I'll likely enjoy the car in stock configuration for a while, then slowly mod it, a bit at a time.

Interesting experience, shopping for the WRX. This is the first car I've found online and agreed on price on, all without walking into a dealership. Emailed a few dealerships and asked for their best quote; within a day, I had several offers. The dealer I'm buying it from made an offer of $300 below invoice, with no doc fee, and no extra charge for delivering the car via flatbed to me, even though I'm 6-7 hours away. Someone here said they probably have around 2% of MSRP behind invoice, as holdback. So they're still making a few hundred. I'm happy with the deal, and I got good financing (1.99% @ 72 mos from my credit union).

Wondering if GAP insurance is going to be a good investment since I bought the car at a good price and I'm putting my taxes & registration down. I shouldn't be too upside down, if at all. GAP would be $399 from the credit union.

 

[ls1mike]

You will enjoy! Have fun with it.

I will add the you have to read up on the new pony cars. The handle and stop very well.

 

[panther427]

Always get gap on a financed car. That 399 will save you thousands if the car gets totalled tomorrow.

 

[gathermewool]

This may be my next vehicle (thought probably a 2020 MY or later by the time we're ready for our next car), unless my wife decides she wants the new car and I end up with the Foz.

This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.

 

[xshoex]

Where are you buying the car from(state), if buying it from a southeast state (NC, sc, ga, fl, al, tn) then i 99% likely worked on your car. every subaru that comes through the port here in brunswick i inspect and do installs too, depending on what each car gets.

enjoy your car, and thank you for keeping my job

 

[Ethan1]

Originally Posted By: gathermewool
This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.


He has good financing, so why should he put more money down? That just means that the loan's balance won't exceed your insurance payout, but you still take the same depreciation hit if it gets totalled! So, your argument against gap is that you should just grab your ankles?

As for buying an older car, he's certainly aware that a new car depreciates most quickly.

In fact, he already ordered the car, so you're not helping at all, are you?

 

[MCompact]

Great car- I'm sure you will love it.

 

[skyactiv]

I owned an 07' WRX I bought new. My wife put a ton of miles on it. Sold it with 136K and only had one issue with it: The clutch slave cylinder went out. Ordered an OEM rebuild kit at the dealer for $20 and fixed it. I think mine was very reliable because it was the last year for that chassis and the bugs were worked out. AWD lets you drive in particularly aggressive manners if you desire. Gunning it on a wet cloverleaf freeway onramp that would have a pony car fishtailing or kicking in it's electronic nanny or a FWD car wanting to go straight. Dropping the clutch and smashing the throttle on wet pavement while being at the pole position when a traffic light goes green. There is a night and day difference riding a sport bike on dry vs wet roads and the WRX is like the nonexistent motorcycle that does almost as good on wet pavement as it does on dry.

 

[gathermewool]

Originally Posted By: Ethan1
Originally Posted By: gathermewool
This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.


He has good financing, so why should he put more money down? That just means that the loan's balance won't exceed your insurance payout, but you still take the same depreciation hit if it gets totalled! So, your argument against gap is that you should just grab your ankles?

As for buying an older car, he's certainly aware that a new car depreciates most quickly.

In fact, he already ordered the car, so you're not helping at all, are you?

Risk analysis, bubba. I'm not sure what financing terms has to do with it...right?

Aside from being mostly rhetorical, the point of my post was: if the OP can afford the car, then he can most likely afford adequate auto insurance. Beyond that, what's his chance of totaling his car and owing more than insurance is willing to give him for it? If the risk is low, then spending any money, IMO, makes no sense.

 

[donnyj08]

Originally Posted By: gathermewool
Originally Posted By: Ethan1
Originally Posted By: gathermewool
This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.


He has good financing, so why should he put more money down? That just means that the loan's balance won't exceed your insurance payout, but you still take the same depreciation hit if it gets totalled! So, your argument against gap is that you should just grab your ankles?

As for buying an older car, he's certainly aware that a new car depreciates most quickly.

In fact, he already ordered the car, so you're not helping at all, are you?

Risk analysis, bubba. I'm not sure what financing terms has to do with it...right?

Aside from being mostly rhetorical, the point of my post was: if the OP can afford the car, then he can most likely afford adequate auto insurance. Beyond that, what's his chance of totaling his car and owing more than insurance is willing to give him for it? If the risk is low, then spending any money, IMO, makes no sense.



+1 I agree with gathermewool. This car costs what $35-40k even at invoice? I have no issue with the OP decision to finance as the rate is good and it makes sense to use the banks money and let them make a small percentage rather than drain ones savings. I would hope that the OP has $399 extra dollars for the GAP insurance, after all that's probably less than one months note. It makes sense to me to purchase gap especially if the OP is financing the majority of the car. If he is involved in an accident in the next six years the GAP will likely be beneficial.

Congrats on the new ride OP

 

[xshoex]

Originally Posted By: donnyj08
Originally Posted By: gathermewool
Originally Posted By: Ethan1
Originally Posted By: gathermewool
This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.


He has good financing, so why should he put more money down? That just means that the loan's balance won't exceed your insurance payout, but you still take the same depreciation hit if it gets totalled! So, your argument against gap is that you should just grab your ankles?

As for buying an older car, he's certainly aware that a new car depreciates most quickly.

In fact, he already ordered the car, so you're not helping at all, are you?

Risk analysis, bubba. I'm not sure what financing terms has to do with it...right?

Aside from being mostly rhetorical, the point of my post was: if the OP can afford the car, then he can most likely afford adequate auto insurance. Beyond that, what's his chance of totaling his car and owing more than insurance is willing to give him for it? If the risk is low, then spending any money, IMO, makes no sense.



+1 I agree with gathermewool. This car costs what $35-40k even at invoice? I have no issue with the OP decision to finance as the rate is good and it makes sense to use the banks money and let them make a small percentage rather than drain ones savings. I would hope that the OP has $399 extra dollars for the GAP insurance, after all that's probably less than one months note. It makes sense to me to purchase gap especially if the OP is financing the majority of the car. If he is involved in an accident in the next six years the GAP will likely be beneficial.

Congrats on the new ride OP

A base model manual trans with just floor mats is 27k ish.

 

[BigD1]

Definitely get the GAP. My son was just in a head on collision the other night because the other driver was texting. His 2013 Sonata is total loss. He is already being represented by a law office, and one of the first things the law office investigator asked was if he had GAP insurance. He does not, but they said they would do their best on the property damage claim, but if that magic number was offered they had to basically take it. Five days later, and they still have not provided a rental car, and he did not have rental on his insurance either, so that's something else to think about adding. He does get 2k medical pay from his own insurance.

Anyway, sounds like a very nice car, and I hope you enjoy it.

 

[Andrew1972]

Who is offering $400 gap insurance? It seems considerably steep for a highly unlikey event. As time passes(1yr) the idea of being upside down on a low depreciation make/model like WRX does not add up.

Congrats on car!!! If we had one less child my wife would likely be zipping about in this to replace her aging 2005 Legacy turbo(aka grownup WRX) wagon.

 

[Andrew1972]

Who is offering $400 gap insurance? It seems considerably steep for a highly unlikey event. As time passes(1yr) the idea of being upside down on a low depreciation make/model like WRX does not add up.

I'd check your auto insurer for gap insurance also and their costing.

Congrats on car!!! If we had one less child my wife would likely be zipping about in this to replace her aging 2005 Legacy turbo(aka grownup WRX) wagon.

 

[Vern_in_IL]

Not interested in the WRX.... Subaru Impreza WRX STI NR4- NOW WE TALK!!!

 

[rationull]

Congrats, and good choice! Your criteria sound pretty similar to what mine were when I bought my 2011 WRX, although hatchback body style was on my requirements list (I'm still bummed they've dropped it from the new generation). I'm 4.5 years and ~65k miles in on mine. It's got its quirks but no real problems, and I still love it as much as I did when I first bought it. Enjoy -- and post pictures!

 

[john_pifer]

Originally Posted By: rickmeseke
Where are you buying the car from(state), if buying it from a southeast state (NC, sc, ga, fl, al, tn) then i 99% likely worked on your car. every subaru that comes through the port here in brunswick i inspect and do installs too, depending on what each car gets.

enjoy your car, and thank you for keeping my job

Thanks man! I'm buying it out of Little Rock.

Originally Posted By: skyactiv
I owned an 07' WRX I bought new. My wife put a ton of miles on it. Sold it with 136K and only had one issue with it: The clutch slave cylinder went out. Ordered an OEM rebuild kit at the dealer for $20 and fixed it. I think mine was very reliable because it was the last year for that chassis and the bugs were worked out. AWD lets you drive in particularly aggressive manners if you desire. Gunning it on a wet cloverleaf freeway onramp that would have a pony car fishtailing or kicking in it's electronic nanny or a FWD car wanting to go straight. Dropping the clutch and smashing the throttle on wet pavement while being at the pole position when a traffic light goes green. There is a night and day difference riding a sport bike on dry vs wet roads and the WRX is like the nonexistent motorcycle that does almost as good on wet pavement as it does on dry.


Now that WILL be interesting - playing with it in the wet! Who knows, maybe I'll like AWD.

Originally Posted By: gathermewool
Originally Posted By: Ethan1
Originally Posted By: gathermewool
This is just my opinion, but if you're worried about gap insurance, then you should either put more down or buy a used vehicle that has already depreciated.


He has good financing, so why should he put more money down? That just means that the loan's balance won't exceed your insurance payout, but you still take the same depreciation hit if it gets totalled! So, your argument against gap is that you should just grab your ankles?

As for buying an older car, he's certainly aware that a new car depreciates most quickly.

In fact, he already ordered the car, so you're not helping at all, are you?

Risk analysis, bubba. I'm not sure what financing terms has to do with it...right?


Financing terms factor in because, the higher the interest rate, the more I owe on the car. Someone hits me and totals it, the $1600 finance charge that's rolled into the loan isn't part of the value of the car. So, I'd lose that money.

I am putting my taxes down, which is $2000, plus another $1000. So, I wouldn't be in terrible shape. I would likely lose SOME money. The salesman says Subaru has the highest resale value...I dunno about that, but it wouldn't surprise me if it was in the top 3 or 4 as far as resale.

 

[Andrew1972]

Why are you getting a $1600 financing fee upfront? That makes little sense.

Typically financing is monthly across the entire span of loan.

That all being said it sounds like gap is worth it given the little money you are putting down as you are upside down on this driving off the lot.

 

[dwcopple]

THIS^ get the GAP, but shop it

 

[john_pifer]

Originally Posted By: madRiver
Why are you getting a $1600 financing fee upfront? That makes little sense.

Typically financing is monthly across the entire span of loan.

That all being said it sounds like gap is worth it given the little money you are putting down as you are upside down on this driving off the lot.


$1600 is the TOTAL finance charge I would pay over the life of the loan IF I make the minimum payment every month for 6 years. If I pay it off early (which I plan to do), i won't end up paying that much.

Incidentally, I found this article that says Subaru is the best for resale value among standard (non-lux) brands:

http://www.cbsnews.com/media/the-10-best-cars-for-resale-values/

WRX is specifically mentioned as the highest resale value for a compact car.

All that said, even under perfect conditions, it's still only worth ~ 60% of the initial value after 5 years.