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I can’t speak to your lease. But zero percent is zero percent. Nothing here to overthink. Unless you have credible inside information, how Subaru is managing this etc is anyone’s guess. If you can pay cash maybe you’ll get a lower price. Try it. If you can’t or don’t want to, negotiate the best deal you can and finance at zero interest. Me? If they’re giving me a free loan I’d rather keep my cash and make more if it than put down cash for the car.
 

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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.
Nope, not a troll. I spent over forty years operating dealerships, consultant, and expert industry Court witness. Being a successful You Tube entrepreneur has absolutely nothing to do with having expertise in the actual retail automobile industry. I watch those as well and marvel at the number of not true statements. But, their pitch is based on gaining subscribers with little concern as to accuracy or actual knowledge.
 

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Nope, not a troll. I spent over forty years operating dealerships, consultant, and expert industry Court witness. Being a successful You Tube entrepreneur has absolutely nothing to do with having expertise in the actual retail automobile industry. I watch those as well and marvel at the number of not true statements. But, their pitch is based on gaining subscribers with little concern as to accuracy or actual knowledge.
and I've a GM of a major car dealership in the SE. See, you have no idea if I am telling the truth or not. Your made up claim is just that: made up. Also, I'll take Dave Ramsey's advice over an anonymous internet poster with two posts
 

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and I've a GM of a major car dealership in the SE. See, you have no idea if I am telling the truth or not. Your made up claim is just that: made up. Also, I'll take Dave Ramsey's advice over an anonymous internet poster with two posts
Actually, it is pretty easy to figure out you are not. If you were and still working, you wouldn't have to buy or lease your own cars. Dave who! Does he work in the business?
 

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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.
Please report comments you think are trolling - please don't instead attack posters.

Regardless, I worked in auto finance, including for Subaru Credit Corporation* (the predecessor of Chase's "Subaru Motors Finance" and others). He's correct in indicating that many special finances deals are subsidized by the manufacturer. Some are direct subsidized by big dealerships who have direct relationships with certain financial companies. He's generalizing in saying it's an alternative to cash rebates - in that it really depends on how the incentives are being handled (in other words, the structuring of the incentives may or may not make it an incentive to cash rebates, may or may not be related to dealer holdbacks, may or may not directly affect their bottom line immediately or in the future).

* We were Marine Midland Automotive Financial Corporation, a subsidiary of Marine Midland Bank, bought and eventually dismantled by HSBC. We did financing for (among others) Porsche, Subaru, Mazda, Saab and Sterling, under their names (Porsche Financial Services/Subaru Credit Corporation/Mazda American Credit/Saab Scania Corporation/Sterling Credit Corporation respectively). We also did special financing programs like "Justy Buyer Program". I worked in the Auto Finance division, and programmed a big chunk of their systems, needing to keep up to speed on finance laws for the entire eastern seaboard (my area of responsibility).

That was in the late 1980's, but, many things, such as finance incentives and much surrounding auto finance laws, have not changed much.
 

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I think jallen4 makes some very valid points, as Robert has confirmed from his experience as well.... somewhere between you and the corporate mothership, the dealer/manufacturer/fi departments have to make up that money somewhere, that's just simple business sense. 'Free' is rarely actually ever 'free.'
I use dealer financing as a leverage point, I'll finance through them if they can match or beat my interest rate, if they give me a better deal, or throw in some additional free services (oil changes, free details, etc).

In the end the only one who's actually looking out for your own financial interests, is you. The dealership doesn't really care, Dave Ramsey doesn't really care (I think he's useful if you're in way over your head in debt, and/or have no financial intuition), your coworkers don't care, and even your family members may not care about your financial situation. So in the end it's on your shoulders to figure out what's best.

Full disclosure, I bought my F-Pace with 0% financing. This was strictly a fun/weekend car purchase (never thought I'd end up with an SUV as a fun car). Negotiated a deal I was comfortable with on the purchase price, put enough down that I would never be upside down, (knowing it will depreciate rapidly), and while I usually pay things off early, I am not paying this off early because there is no benefit to it. I used that extra money for investments, which worked out much better than I expected when the market tanked a few months ago and I jumped in (pure luck, one can never anticipate when the market's going to drop).
 

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I really did not come here to cause a problem. I have several cars and participate in several forums. Cars have been a lifetime passion and career. Last year I bought an Outback as a daily "grocery-getter" and have come to really enjoy it. I have thought about an Ascent, as some of my friends have one, and I am doing research.

My comments about financing are basic and simple. Yes, dealers are in the business to make money and financing is one way to do that. That does not though mean they are always a negative for the consumer and in fact can be a great resource. They are going to have access to options not necessarily known by the average consumer and those can be very competitive. The smartest thing said here yet is to have shopped financing before you get to the dealership. Then you can make an informed decision.

I love You Tube automotive reviews and spend too much time watching them. Again, old habits are hard to break. I do though warn people to not believe every thing they see on You Tube about the business no matter how glitzy the production values. Conspiracy theories and negatives sell views and picking on dealers sell them as well. Factually, a salesman who spent six months or even five years in the business seldom truly understands the business. The actual business process does not take place on the showroom floor and does not involve the salespeople making decisions and policy. They are paid to sell and deliver product and are invaluable at their job.
 

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Discussion Starter #28
Howdy again. Sorry for the radio silence. I see quite the spirited discussion ensued while I was gone.

I ended up “trading-up” my lease, with 18 months remaining, for a 2020 Touring with VIP pricing and 0% for 63 months. I got a fair trade-in value (higher than the KBB trade-in guarantee), but there was still inequity in the lease that I had to cover. The inequity was only about a third of what I owed in total on the remaining lease payments. Also, sales tax was cut in half thanks to the trade-in value of the lease.

My monthly payments went up about $150 but I’ll have something to show for it and have the option to keep it, sell it, or trade it in when the time comes.

Also, ended up with crystal white pearl :)
 
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