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Discussion Starter · #1 ·
Hi all,

I am expecting my Ascent to arrive at the dealer later this month. My question is about the Loyalty coupon for leasing. Does it typically get applied as a a cap cost reduction (ie, similar to a 'down payment') reducing total cost of lease?
 

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2019 Ascent Touring (CWP)
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It's a direct rebate so it would be used to reduce the capital cost I would suspect which would lower the payment slightly. You should be negotiating the price of the vehicle (before the rebate) before having the leasing discussion, BTW...
 
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Discussion Starter · #3 ·
That’s what I’d planned. I just don’t know if it’s as simple as

(MSRP - purchase price = cap cost) - loyalty = new cap cost + rent fee = total lease cost

I realize this is gross oversimplification, but it illustrates how I am trying to think about how loyalty coupon.

another way I am hoping it might work? Let’s say I have a deal at $460/month with a dealer. Maybe it’s $500/36 months = $460-$13= $447/mo
 

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Capital cost is the discounted price of the vehicle less incentives and then less the residual. It's the final number they use to calculate the monthly cost using the basis ("interest"). It has nothing to do with MSRP unless you're willing to pay MSRP for a vehicle. ALWAYS negotiate the price of the vehicle first before you discuss how you're going to finance it including leasing. The Loyalty Coupon is a manufacturer rebate and gets applied after all discounts negotiated are figured.
 

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Discussion Starter · #5 · (Edited)
Thanks! I know that one typically negotiates purchase price. In this case, I am attempting an alternate approach wherein I have a relationship with a dealer, and he handily beat the best deal I could get in a 50 mile radius.

Before I sign papers, though, I am trying to model what I should expect when I apply the (not previously disclosed) loyalty coupon.

As I havent seen the actual numbers this dealer is using to come to our agreed upon payment, the best I can do is use the LeaseHackr calculator and back into the deal with numbers from a dealer that previously sent the lease sheet to me

(hoping its ok to put links in these posts)
Here is my model of the agreed upon deal. I needed to guess that there is $750 in incentives applied to get to the monthly payment we agreed to
LeaseHackr Calculator - $450/mo

If I add the $500 loyalty coupon, is this reasonable to expect?
LeaseHackr - w/ $500 loyalty (you have to enter 63%for residual on this link, for some reason)
 

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The Loyalty Rebate should reduce your monthly lease payment by a hair because it reduces the capitalized cost that the leasing entity uses to make their payment calculation. The dealer gets the $500 from Subaru when they turn in the rebate coupon. It's that simple.
 

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Discussion Starter · #7 ·
The Loyalty Rebate should reduce your monthly lease payment by a hair because it reduces the capitalized cost that the leasing entity uses to make their payment calculation. The dealer gets the $500 from Subaru when they turn in the rebate coupon. It's that simple.
in the links above, I am seeing $15/mo difference. I define that as 'thick, luxurious hair' in that case :)

Seriously: that is a pretty decent adjustment, In my opinion-- I am wondering if I am modeling it incorrectly.
 

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That would be about right for a 36 month lease...down and dirty....$15x12x3=$540.
 
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