No bmw has an msrp end in xx996, that is obviously the sale price not the msrp.
Haha -
Nope - just lived through Hurricane Harvey
I also need advice please. I was upside down in a previous car BMW 328i and when I leased my current car Subaru Outback 2017 limited the dealership told me it would get rid of my negative equity when I finished the lease. So I currently pay $580/mo until May 2020. It was for 42 months. Problem is, I think I will go over my miles so I don’t know what to do. I drive a lot for work and drive to from Miami to Atlanta a couple of times a year. I can fly instead of drive to Georgia so that will help a bit. I have 23,000 miles now and I can’t go over 32000… I went to Subaru last week and they said they could get me into another 42 month lease for a 2018 Outback but for only $40 less than what I pay now, so $540, no money down. I’m sorry I am not good at all of this. Any recommendations? Should I just wait until I am almost over my miles and then try to get into another lease? I really need the payment to go down a lot from $580, so how do I do this? I guess I need to stay with Subaru, right? I really like the Outback anyways…Btw, the purchase quote is $33,824.68 on my current leased car. Does this mean I would have to pay all of that if I wanted to buy it (which I don’t want to buy anyways) after I already put so much into the lease? So confused. Please excuse my ignorance. I appreciate any advice. Thank you!
My condolences.
Yes you owe that much after paying 580 a month for an outback. It would be criminal to pay 540 for another outback.
Please do not go over limit. What is the current appraised value of the outback?
Finally, let us know how much you think you drive a year? If it is more than 15k, leasing is not good for you.
Buying out the the outback (and financing through a credit union for a low rate), if you are happy with it, is a good option.
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Does Subaru have a pull ahead offer? If so, you should be allowed all your original miles. Could be an option later.
A pull ahead can take a lot of sting out of high payments, for whatever reason.
You have a 42 month lease with 32,000 miles???
According to Edmunds private sale the current appraised value of the Outback is $21,404 and the trade in is $19,450. Since it’s a lease would I be obligated to do the trade-in or I could do a private sale? Right now I can’t get financing through a credit union (or anywhere for that matter) unfortunately. I just cleared up some debts but my score is still so low. Maybe I should wait until my credit heals and then right before I am about to go over the miles (whichever comes first) try to get a loan through a credit union again?
I think I drive about 15 k a year, give or take. So is there any scenario in which leasing again is a good option? I didn’t know what I was doing both times at the dealership. I didn’t negotiate the price or anything so maybe the $540 was just not a good deal? If I do another lease before this one is up how much should I expect to pay more than what someone else pays if they come in and try to get the same car without having any negative equity? I mean, haven’t my high payments of $580 counted towards getting that negative equity down more than $40 a month?
The dealership said now I am 7 k upside down I think. They also said I would need to co-sign if I wanted to do the $540 new lease.
The best scenario would be not to go over the miles though, right? So it is true that if I finish this lease and don’t go over the miles I am done, turn in the current car, and free to negotiate a new lease from scratch? I would finally be rid of the negative equity and everything? Just making sure…
I just don’t know if I can keep it under 10,000 miles until May 2020… yikes
yes 42 month and 32,000 miles. why? Is that not normal? When I told them it wasn’t enough miles for me they said it was no problem as long as I come and get a new lease before I go over the miles… however, I was under the impression that my negative equity issue would be gone by then. But, come to find out when I went the other day they said they could only get me $40 less. I am thinking that is not a good deal or maybe I’m wrong?
I think most people would agree not to go over 36mo for a lease. All you’re doing with a longer lease is paying more of the depreciation and stretching out your payments so that the monthly payments “look smaller”, but you’re actually paying for a longer period of time so it’s usually not a good idea.
How many miles/yr was your lease? 32000 miles for a 42mo lease sounds like a strange number.
You’ll need to contact the finance company (Subaru Financial?) to find out what the buyout price for your lease currently is. This is the price you would have to pay if you wanted to buy out the lease and own the car outright. When you know that number, then you can compare it to what the trade-in values are for the car right now. If your trade-in value (through Carmax, Vroom, or Carvana) is higher than your buyout price, that could be an option. But honestly, with all the negative equity you rolled in and the length of the lease, I doubt trade-in value will be more than the buyout price.
FYI, when you traded in your BMW for the Subaru, the dealership technically wasn’t lying when they said it would get rid of your negative equity. The part they didn’t bother to tell you is that you would have even more negative equity the moment you drove the Subaru off the lot. It’s very hard to get rid of negative equity, so in the future just be sure to avoid these situations again (my two cents).
@Outbackgirl - are you sure you don’t have 42,000 miles? Did Subaru offer less? 32,000 miles doesn’t even make sense.
A 2017 Outback Limited is worth about $25k so if you owe $33k you actually are $7k upside down. You would need to pay that $7k to get out of it.
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Yes, 12k/year for 3.5 years = 42K. or 35K 10k/year.
I just checked. It’s 3.5 years 10,000 miles per year… so it’s actually 35,000. Better than 32,000. I remember writing down 32,000 because that’s when the dealership told me to come back and get another lease. He said don’t go over 32,000 for some reason. Maybe just to be safe?
Is there any particular reason why you don’t just buy/finance a vehicle, and avoid all of this stress and financial loss by continuously rolling negative equity into successive leases?
What’s the $/mile for additional miles on your contract? Do you have any wear&tear coverage?
You’ve got 12k miles to go, so just sit tight. Come May 2019, you’ll be close to your miles but at least only 1 year left in the lease. If nothing else, your credit will be better.
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Probably because it suits them best to resell the car with fewer miles.
The dealership is not looking out for your best interests, despite what they tell you.
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You could rent a car for your road trips, will be cheaper than paying the miles at the end on the lease. Costco rental. But don’t keep rolling in more negative equity. You need to manage your miles better and setup the lease for what you need next time or supplement with cheap rentals.
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She (?) mentioned she has a low credit score and probably couldn’t get approved for a loan right now. I would guess she doesn’t have the cash to buy it outright either.
Ah gotcha, I missed that part. Is it really true that someone could get approved for $24,360 in lease payments but not $24,360 financing? Serious question, I always thought that leasing had stricter credit requirements than purchasing.
She indicated some credit challenges since inception of the lease, which would knock her out of the running for financing now based on a ding to her score.
It’s really up to the captive. Some are easier than others with regard to leasing.
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