16 STI: Purchase or Extend Lease
 

Hi,

The lease on my 2016 Subaru WRX STI will be ending in April 2019. I am currently debating to either purchase the vehicle at the end of my lease (April 2019) or extend my lease for another 1 or more. I have been working with the Subaru dealership that I leased the car at trying to figure out the finances. As for extending the lease, I was informed by the Subaru dealership that I can extend the lease for 6 months. I am still waiting to hear back if I can extend my lease longer for possibly 1 year or more.

I looked through my lease agreement numbers and have been in contact with the dealership. I was informed by the dealership that the vehicle buyout price is the Payoff Amount (includes remaining payments + residual value) + Dealer Handling + Tax (based on living location) = Total Cost of Vehicle.

Based on this, below is the calculation that I came up with:
Payoff Amount (includes remaining payments + residual value) + Dealer Handling ($489.00) + Tax (8.5%) = Total Cost of Vehicle
$24,843.00 + $489.00 + $2,153.22 = $27,485.22

Currently, I have been paying $309.45/month for 36 months (3 years) lease agreement. I wanted to figure how much I would need to put down if I were to buyout the car at the end of the lease to get my monthly payments similar to the current lease monthly payments of around $300/month. Also, I wanted to know if it would be better to purchase the vehicle at the end of the lease or extend the lease.

I would really appreciate the feedback and comments.

Thank you,

Here's the big questions I'd be asking:
Are you in love with this car; do you want to own it?
How different is the cost to lease a new STI?

[QUOTE=Lowend;3664041]Here's the big questions I'd be asking:
Are you in love with this car; do you want to own it?
How different is the cost to lease a new STI?[/QUOTE]

I do want to purchase the vehicle but reason I am exploring extending my lease due to my current monthly lease is low. I just reached out to the bank that I am leasing the vehicle through to see what the options with extending the lease.

I am currently shopping around at bank and credit unions to get the best interest rates. I have been doing some research and did find some banks and credit unions. Does anyone have any recommendations on bank or credit union with the lowest interest rate? I currently live in San Francisco, California.

[left]*Blatant plug as I work there*

try Technology Credit Union. Branch in the city but you could handle everything via web. [url]http://Www.techcu.com[/url]

you can apply for the loan first and if everything works out for you then you can decide to become a member of the credit union or not. Just mention it’s a lease buyout that you’re looking at.

Good luck![/left]

[QUOTE=CHESTON;3664054][left]*Blatant plug as I work there*

try Technology Credit Union. Branch in the city but you could handle everything via web. [url]http://Www.techcu.com[/url]

you can apply for the loan first and if everything works out for you then you can decide to become a member of the credit union or not. Just mention it’s a lease buyout that you’re looking at.

Good luck![/left][/QUOTE]

Thanks! I will check out Technology Credit Union.