Yahoo Autos Buying out your Subaru lease? Make sure to understand the process and fees before making a decision.
Subaru Lease Buyout: Key Things to Know before You Say Yes
"My Subaru lease is up, what should I do next?"
That's a difficult choice. Buying a new vehicle might be beyond your budget, especially with the current auto market conditions. Even if you're considering a used Subaru, you may not be able to find your preferred model since inventories remain low. There is, however, one option that can provide you with the car you want at a more affordable price.
Buying out the lease of your current Subaru is a good choice to retain your trusty vehicle even after the lease ends. While there are many benefits to a Subaru lease buyout, we advise you not to rush into this until you've explored all the options and done the math. In this guide, we explain the lease buyout process, discuss the pros and cons so you can decide whether it's worth it, and also share information on buyout negotiations, fees, and rates.
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Subaru Lease Buyout Process
When you lease a Forester, Legacy, Crosstrek, Impreza, or any other Subaru vehicle, you're essentially renting it for a predetermined time of, say, two or three years. At the end of the lease, you can:
Lease or purchase a new Subaru
Return your current car and lease or purchase another car brand, such as a Toyota
Or take ownership of your trusted Subaru by buying out the lease
A Subaru lease buyout allows you to purchase the vehicle instead of returning it at the end of its lease. If you decide to go down this route, here are the steps involved in the process:
Determine the Buyout Price
The buyout or payoff amount is mentioned in the lease agreement you receive at the beginning of the contract. This is the amount you'll need to pay the dealership along with other fees and taxes to own the vehicle. An early lease buyout also includes part of the remaining lease payments. An important part of your buyout price includes the car's residual value. This is what the leasing company determined the car will be worth once the lease term runs out.
Decide How You'll Pay for It
If you've saved up for the purchase, you can simply write a check to the dealer for the buyout amount. The other alternative is to apply for an auto loan to finance the buyout. Subaru offers financing from Chase Direct Auto for existing car owners. However, since Chase may charge higher interest than other lenders, you should compare different options to find the best auto loan rate based on your credit profile.
Complete the Buyout Paperwork
Whether you decide to use cash or financing for the buyout, you'll need to complete the necessary paperwork before taking ownership of the vehicle. This usually includes a title transfer, bill of sale, and registration documents. Before finalizing these, note any taxes and fees, such as a purchase option charge, that you need to pay and ask any questions you have about the buyout process.
Arrange for Payment
If you decide to pay out of your pocket, you can simply provide the check to the leasing company or the dealership who is its agent. Alternatively, if you choose to finance the buyout with a loan, you'll need to coordinate with the lender to arrange payment to the dealer or leasing company.
