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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It’s $.15/mile for additional miles. I don’t think I have wear & tear. I called Subaru Finance and they said they didn’t see it but I should contact the dealership.
Totally correct, mp. I had excellent credit when I got the lease but now it’s horrible. I hope it goes up before the lease is up. It should.
My $0.02 is to sit tight and ride it out, and try to lessen miles as others have said. If you have a road trip that you know of, just rent a car for the day for $20. Over 134 miles for the day and it’s “paid for itself”. If you can manage the miles better, you’ll get out of the lease without any more negative equity and can start fresh. At this point just think of it as a personal loan to pay off the prior negative equity. Try not to worry about it 
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Yes, after reviewing all the info, I second the sit tight + put fewer miles by strategically renting/flying/borrowing/catching the bus etc etc …
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Because Subaru warranty is 3 years/36K, so it’s easier to sell with a few thousands miles left than just 1K (assuming she returns before 36 months, of course).
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Awesome, thank you and everybody else for the advice. I intend to take this advice,wait it out, rent a car for road trips and try not to worry about it:) Thank you!
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