Does anyone have reasons why I shouldn’t extend my Subaru lease?
My understanding from Chase/Subaru Finance is that the finance rate will stay the same and the residual will be reduced by each monthly payment.
Finance rates are up across the board so it makes sense to keep the existing rate.
I’m not going to keep the car, but haven’t decided on a new one yet. Lease ends 2/1/2023.
Without Payment , RV, are you over mileage or even the Model of this subaru , no one can even come close to answering it.
I’m not sure why that matters.
I’m not over mileage I’m at 30k miles on a 36k mile lease. Mileage is not a concern.
I pay $407.61/month which includes sales tax.
RV = $24,664 - 2/1/2023
MF = .00065 (1.56%)
I called the finance company and they were of no help.
If I extend the lease, I’m assuming I’ll continue to pay around $40/month in interest/rent charge.
My residual will be reduced by $366/month.
After 6 months my RV would be ~$22,468
The above is what I’m trying to confirm.
My thought is that if take out a 5yr loan at current interest rates, I’ll be paying much more in interest over the 6months and my loan balance after 6months would be higher than the RV on the lease.
Well if your payment was horrible , you shouldn’t extend.
Your payment appears to be ‘good’ at about $400/month for a roughly $35k car
Since you don’t want to keep, don’t worry about RV and just extend until you find a car you want to replace it.
Why pay interest and sales tax on a car you don’t want. Don’t expect any equity as that ship is sailing off into the distance right now.
Thanks for the feedback.
MSRP on the car was actually a little over 40 or 41k. Its a 2020, Outback Touring XT model, first year model released for 2020. 2023 MSRP is 42,295.
I’m more of a, find a car I want, then maximize my acquisition which could be a lease or purchase for 3yrs.
I’d rather pay more for something I want then try to get the lowest price lease on something I don’t want to drive.
Even better, 42k for $400, EXTEND! haha
Start looking for a car you want to drive. I would wait till the next year as prices are dropping now. Why overpay and give that free sweet money to the dealer to spend on H&B when YOU can wait a few months and spend it on H&B for yourself?
H&B?
But yeah, I get your original point, I’m just paying for an “old” car while I could be putting my money to work on a new car. I also hear ya on the RV in 6 months, I know used car prices are dropping but I was still hoping for being a little bit on the upside in the middle of 2023…wishful thinking.
Also, I’m with you on thinking new car prices might come down and availability better in 6 months.
I like getting brand new models, first year. Was looking at something like the all-new GLC, I think they are out in Europe as 2023 models, but I’m hearing it will be for sale mid 2023 in the US as a 2023/2024 model.
H&B? Google it!
All New? WELLLLLLL, those are probably still going for Premiums as even before the Pandemic new model years spent 6 months asking for ADM.
But I believe that after June (Because Mar - May is IRS Tax Money Season), you can get a good deal.
I don’t know what state you’re in but I extended a lease and had to pay increased taxes. Think my payment went up ~$35/month. #lovenewyork
Interesting,
But still $400 → $435 for example is a lot better than $635 for a new.
Extensions are the way to go if you car has low or no equity right now.
Agreed. I have a 2019 Honda Passport. Was paying $365 now $400 on extension. Can’t touch it with anything new at the moment.
Though I am interested what rule in NY causes the tax to go up on Extension.
In NY, you’ve paid sales tax up front on the total lease amount either in the cash DAS or by rolling it into your lease. So if you extend, sales tax has not been paid on any amounts due for the extension.
I pay taxes on the monthly amount. So it will be difference on the old residual vs the the new residual, which is fine.
I paid less than $8-900 when I signed the lease and that included the first month payment so about $4-500 for title, and fees.
Similar to NY, per the poster above.
I get H&B now, I couldn’t find it in google or even urban dictionary, but my mind goes to the gutter sometimes and I get it now…
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