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My questions are, do folks agree this is a good idea. Payment goes up $150/mo but I’ll have something to show for it. Question 2 is, which looks better with the java brown, red or white exterior? (We may end up in a limited just because of the black interior anyway).

Thanks!!
 

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My questions are, do folks agree this is a good idea. Payment goes up $150/mo but I’ll have something to show for it. Question 2 is, which looks better with the java brown, red or white exterior? (We may end up in a limited just because of the black interior anyway).

Thanks!!
I'd pass if it's a 2019. Let the lease run out and go for the the newest year model. If I could lease cars I would. But unfortunately I put too many miles on my vehicles
 

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@MichaelJohn

0% financing is a scam for the most part. There are plenty of videos on YT that go through how it works. They'll make more money off of you if you do this then if you just let the lease run out. Right now used car inventory is a problem because nobody is buying used cars so they're trying to basically sell you a used car after you've already paid interest on it. a car that you probably didn't drive as cleanly and nicely as you would have had it been yours initially because you knew you were just going to turn it in any way. On my 2020 ascent, my loan was $21,500 at 1.9% APR. If I just pay the minimum payment, which there's no reason to because my payment is so low, I would only pay around $1,100 in interest on a brand new car on a five-year loan.

I don't know what the interest rate on your car was, my guess is probably somewhere around 3%, so they basically already made that money off of you and now they're just trying to get you to keep a vehicle that they know they will have to send an auction and not make any money off of it. Not worth it.
 

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SA, the OP is planning on off-loading the leased vehicle early in favor of a brand new Ascent utilizing the 0% interest rate deal, not paying off the lease and refinancing it.
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OP, having a new vehicle is nice and if you have the ability to get out the lease WITHOUT rolling any cost into the new vehicle, sure, check it out. But 0% financing comes with costs, too. Someone is subsidizing the rate...I assure you that Chase isn't working for free in loaning the money, so the "real" interest is coming out of Subaru's pockets. Some folks have reported being able to negotiate a lower price without the 0% deal. And then there is the 63 months. If you do that deal, be sure you also have gap coverage or an accident with a totaled vehicle could be very costly to you.
 
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Lots of bad info on here about how financing works. The effective rate is the effective rate. Truth in lending laws prevent hiding anything relative to financing terms and since ALL special financing offers are from the manufacturer you can see specific terms on their site which I’ve never seen changed. Only discretion is if you fall victim to the financing manager who’s job it is to get you to buy the ceramic coating, windshield protection, extended warranty etc. Then yes you can duped into additional cost. But through the simple trick of actually reading the paperwork and a calculator, you can avoid this! People who get mad that the cost changed or whatever we’re simply too lazy to diligently read the contracts and took the dealer’s word. Don’t listen to the 0% is a trick nonsense written above. It’s exactly that, an interest free loan. Everything after that is about your ability to negotiate down the price of the car, dealers are not allowed to violate terms of manufacturer financing. Of course finance is zero sum and they are only offering it to move vehicles so it’s silly to think they don’t make a margin.
Lease terms can change more easily than financing. You’ll need to look at your terms and the buy cost relative to where you are. Also the vehicle condition can be a bargaining chip for the dealer.
 

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Lots of bad info on here about how financing works
Specifically...what are you referring to? That's way too general a statement to make. While it's true that the rate is the rate (as long as you qualify for it) zero percent (and often other low rate) manufacturer deals are subsidized by either the manufacturer or the dealer or both. That's a fact. The bank (Chase in this case) isn't giving out free money to anyone. There actually have been reports from a few buyers that some dealers have offered a better deal for a buyer to provide their own financing or cash because of these subsidies although I certainly have no direct knowledge or experience with that.
 
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Yes of course there’s a philosophical argument there. I think we all agree businesses make money. But I’ve never had an issue getting lower prices at zero percent than others with their own financing or paying cash. I know a couple GMs and one owner of a dealership and all have confirmed it’s a myth that dealers prefer a cash deal or will go down more if you have your own financing, save for non branded dealerships. They literally don’t care as their holdback is fixed regardless of how the deal is financed.
 

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Yes of course there’s a philosophical argument there. I think we all agree businesses make money. But I’ve never had an issue getting lower prices at zero percent than others with their own financing or paying cash. I know a couple GMs and one owner of a dealership and all have confirmed it’s a myth that dealers prefer a cash deal or will go down more if you have your own financing, save for non branded dealerships. They literally don’t care as their holdback is fixed regardless of how the deal is financed.
let me reiterate in a more eloquent way, dealers don’t really consider financing as a variable in negotiation a price. Pretty much all purchasing consultants agree that you’re better off looking at timing, regional inventory, model availability, and only focusing on price and not even discussing financing as many sales people will convert that into a discussion around monthly budget which is much easier for them to win.
 

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They can't win. They can only get you to concede. It's been many years now, but in my experience cash deals were often cheaper than financed deals. IDK the who/whats/wherefores, but I'm not sure it matters. Go in, negotiate the best cash deal for exactly what you want, enumerated on paper including all fees and taxes, then ask about financing.
 

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Agreed on approach but I’ve done both ways and never seen bottom line difference. I’d bet your experience was more dependent on the factors I identified above than any magic on throwing out the cash word. Unless you bought used which is a whole other ball game and financing becomes far more relevant.
 

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I was gonna add another comment but I'm not in the mood to argue with "well aktualy" for the next two hours
 

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Would welcome non YouTube proof from a dealer or the OEM on the matter
Dave Ramsey, John Cadogen, or any other finance or car guy. Never heard anyone say it's a good idea. It removes all negotiating power from the buyer and gives it to the dealer
 

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Why don't you see if you could re-negotiate the purchase price at the end of your lease, or buy an extended warranty and keep the one you have when the lease is up assuming the miles aren't too high- ultimately that would be cheaper. It's not like the car was completely redesigned, although there are some upgrades like the folding mirrors and improved LKA I would like.
But ultimately it's your money, don't let any of us tell you how to spend it :)
But, since you asked :),...
If you're not sure what to do, make a spreadsheet and compare all the costs. But even with interest free financing you're basically buying the same thing, just a little newer...
If the free financing is the primary decision in the purchase ( It may or may not be, but even 2-3% on a note isn't going to massively change the payments), what you really have to take a look at is whether or not you really need to spend that much money on what is essentially a slightly newer version of what you have now. Could you save that $150 a month for some future need or investments / retirement / etc.

A ( non collectible) car is a depreciating asset, so you're never going to come out ahead.
 

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Would welcome non YouTube proof from a dealer or the OEM on the matter
I am a retired Cadillac dealer and have caused tens of thousands of car sales. I received "cash" for every one of them. It came either directly from the consumer or from the lender when I cashed the deal in. Dealers would always prefer to finance the car as they receive money from the lender for doing so.

It is not a wise thing to listen to the "how to" nonsense on You Tube. Most of them are guys who lasted a minute selling cars but became experts after they quit or were fired. If they really knew what they were talking about they would be still making money doing business. Zero percent interest is simply subsidized by the manufacturer and is an alternative to cash rebates either to the dealer or the consumer. In some cases you can receive an either or and in some cases you either take the financing or nothing. Simply ask the dealer.
 

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I am a retired Cadillac dealer and have caused tens of thousands of car sales. I received "cash" for every one of them. It came either directly from the consumer or from the lender when I cashed the deal in. Dealers would always prefer to finance the car as they receive money from the lender for doing so.

It is not a wise thing to listen to the "how to" nonsense on You Tube. Most of them are guys who lasted a minute selling cars but became experts after they quit or were fired. If they really knew what they were talking about they would be still making money doing business. Zero percent interest is simply subsidized by the manufacturer and is an alternative to cash rebates either to the dealer or the consumer. In some cases you can receive an either or and in some cases you either take the financing or nothing. Simply ask the dealer.
Don't listen to successful entrepreneurs on YouTube but listen to this random, anonymous comment on a thread talking about how he's an expert. This comment has to be a troll.
 
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