Hi, tried looking around for similar threads on this and couldn’t find much.
Dealer reached out offering a lease buy back special if getting a new lease. Some perks mentioned: disposition fee waived, first months payment waived, damage charges waived.
I have Subaru 2018 Crosstrek Premium with 5 months left on my lease.
Completely in the dark on what I need to know about these offers. Any suggestions or pointers to consider, or where to read more would be appreciated. Thanks!
Post the offer. If these are thru mfr they can be legit, if it’s thru dealer usually they are rolling your remaining payments into the new lease and spreading it out over the new term.
There is not currently a Subaru lease pull-ahead, but there is a lease loyalty offer:
Lease Loyalty Program
Is your current Subaru leased through Subaru Motors Finance? If so, you may also qualify for the Subaru of America Lease Loyalty Program. Under the Lease Loyalty Program, Subaru will make the first monthly payment on your behalf – not to exceed $500 – on your next Subaru lease through Subaru Motors Finance and pay any disposition fee owed on your current leased Subaru. Offer subject to program rules and customer eligibility requirements. Ask your Subaru retailer for Lease Loyalty Program details.
If you decide to investigate further, before you visit the dealer, you should follow the instructions on Ending Your Lease Early to see what your payoff is and what your current lease is worth
Haven’t asked for the offer yet, was trying to understand what to look out for before starting the conversation. It’s through the dealer so good to know about rolling over remaining payments.
@jeisensc thanks for the heads up on no pull-ahead offers and the loyalty program.
Depending on the appraisal, I’m hovering on the border of negative and positive equity.
Will reach out to the dealer for info and share when it comes in.
Alright finally got some more info.
Given my current mileage and time left on the lease, dealer says I can get a new lease without rolling over any remaining payments. When asked for more info was told the program they use for lease termination only has inputs that would say the additional amount due and not the actual appraisal amount. It basically says “accepted” and not much else. So not sure what to make of that.
Re: the offer, for a 2021 Ascent Limited 7 Seat with Tech Package I got:
MSRP $44,924
Selling Price: $40,998
Drive-offs: $1,630.95 (tax)
12/36 lease
MF: 0.00135
Residual: 62% ($27,852.88 )
Monthly: $487.95/mo (includes acq fee + doc fee + reg)
Re: selling price, contacted 8 dealers in the area and this price is .43% better than all of the others.
Edmunds quoted .00115 and 61% on Jan 9 so not sure where that discrepancy came from.
Thoughts on this?
How does the discount compare to other deals you have seen? Are there any incentives you qualify for?
Discount is best I’ve seen. They’re offering 8.74% off, next best offer I got was 8.31%
$500 loyalty incentive is included in that quote as well.
You really need to see if you have positive equity from Vroom, Carvana, ALGo, etc first before moving forward. I truly think you might
That’s what I’m thinking too, my guess is around $500-$1500 in positive equity. If Vroom is accurate, it could be closer to $1800.
If that’s the case, how do I approach that? Could that positive equity be applied to drive down my net cap cost and lessen my monthly payments more?
Yea, you have 2 separate things going on here, you really need to go at these separately to make sure you’re not leaving money on the table.
You need to get the trade in value they’re applying to the deal. Then go online to Carvana, Vroom, etc. and get additional offers. Compare all of these to your current payoff (make sure you’re using the right payoff for a dealer).
The dealer is hoping that you’re so excited about the prospect of a new car and ending your lease early that you don’t even ask further about the trade value or any equity you may be potentially just giving away.
Thanks jeff, very clear. Regarding the deal, seems to be relatively decent compared to past deals I’ve looked at. Not the best, but definitely not bad — good enough that I’d be ok moving forward on it.
Back to ending my lease early, if I have any equity, can that be applied towards my new lease?
Keep in mind that dealers love to show big discounts on the new car to cover up a poor trade in value being used to get there. Ask them if they’ll do the same deal on the new car without the trade in.
The way you access the equity in your current lease is by selling the vehicle. If you ended the lease early you’d still be on the hook for remaining payments. You’ll either be selling it to the dealer as your trade-in or selling it to Vroom, Carvana, Carmax, etc. At that point you can pocket the equity or use it towards your new lease. I’ve sold to Vroom and Carvana before since they offered more than the dealer in those particular cases.
As for the Ascent you might want to look into leasing a Touring. Incentives vary so that might not be the same case for you, but when I looked into it this month the Touring was only going to be an additional $15/month over the Limited with Tech. My current Limited with Tech Ascent lease doesn’t end until the Fall so I haven’t jumped on anything yet. If I was ready (and getting another Ascent) I’d bump up to the Touring.
Got it, really helpful. Thank you! Will look into the touring as well.
Since Covid hit, used cars are doing great in auctions. I’ve been able to switch customers out of Hyundais and Subarus with way over a year and a half left on their lease contracts without rolling any negative into their new lease contracts, getting them in exact same monthly payment with zero due at sign.
After covid 80% of time you’re lease payoff amount is below what the car would sells in an auction right now!!
Simply login to your account or call your leasing company and get your payoff, then do your do homework with Carmax, Vroom, Carvana, Cargurus and see how much you can get for the car…