Subaru Ascent Forum banner
1 - 7 of 7 Posts

·
Registered
Joined
·
4 Posts
Discussion Starter · #1 ·
Hey everyone. We have a 2019 Touring Ascent and we love it. We are about halfway through the lease period, and plan to buy it once the lease is up.

What kind of rates, length, and terms should we expect? Anyone have any experiences they want to share?

We put down $7500 when we leased it, if that matters.

Thanks!
 

·
Registered
2020 Ascent Touring
Joined
·
1,180 Posts
I would never consider buying at the end of my own leases but would consider buying an end of lease of a different car. When you entered the lease agreement, an artificially high residual value is the norm because this gives you the lowest monthly payment. Typically, the actual market price of the same car will be significantly lower (maybe it's different for Subaru) than your residual. The lease holder will typically only sell you your car for the original residual and might negotiate a slight discount but often they won't. They'd rather find a new buyer that they can hit with origination fees and a higher rate. In reality many of the end of lease cars go to auction and the lease company would have done better to negotiate a lower price for you but that's a whole other issue.

There's one scenario where I would buy the end of lease vehicle that I have been using. That's if the current market price is higher than the residual/asking price from the lease holder. Then I would buy it and immediately sell it for the profit. Works best if you are really confident that you can find the right buyer.

Your experience may differ, but that's the scenario I am familiar with the thousands of lease vehicles that my former employer had in their fleet.

Good luck.
 

·
Registered
Joined
·
1,136 Posts
The value of your Ascent is probably lower than your residual price because of the present nature of the situation. However, if you were to give it back to Subaru and were to try to purchase the identical vehicle, I am pretty sure you would be paying more than your residual number. If you like the vehicle, no problem with buying it, but your rates will be in the 5% range (normal for used cars).
 

·
Super Moderator
2019 Ascent Touring (CWP)
Joined
·
4,180 Posts
We put down $7500 when we leased it, if that matters.
It doesn't. Your down payment on a lease merely pays part of the capital cost that is divided up by the number of payments over the lease term, but if you add up your payments plus the down payment you'll be at a very similar number to what it would have been had you not made the down payment.

You'll be looking at use vehicle financing rates if you want to shop around with credit unions, etc. The cost of the vehicle will be the something akin to the lease residual so you can do some budgetary figuring.

You may also want to compare to an early trade-in for a new one as an alternative to buying out a lease.
 

·
Registered
Joined
·
771 Posts
^ Jim_in_PA summed it up really well.

Unless you have serious modifications in the vehicle already or have sentimental attachment to it, I would encourage you to simply look at your lease paperwork and see if your buy-out numbers make fiscal sense, versus what your vehicle is actually worth.

Sometimes you get lucky. Sometimes you don't.
 

·
Registered
Joined
·
23 Posts
See what an identical car is selling for. It may be cheaper to buy another one just like yours than the car you already have. Or it may be cheaper to buy yours. Just shop around.

I read about a guy who leased a BMW and they way overestimated the residual by something like $10,000-$15,000. He wanted to buy the car when his lease was up. BMW Financial wouldn't negotiate, so he worked out a deal with the dealer. He turned the car in at the end of the lease. It went to auction (never physically left the dealer though), the dealer bought the car at the auction for whatever the market wholesale price was. The car then was in the dealer's inventory and they sold it to the guy as a CPO at the used car market value, saving him thousands.
 
1 - 7 of 7 Posts
Top