Good deal for a 2020 Outback Premium w/ prior lease trade-in over mileage?

Panagram60

Hi there,

I have not signed yet but here is the deal! I have a leased 2018 Crosstrek Premium that is about 13K over mileage (@$.15/mi) in the deal as well.

Lease for 36 months, 15K miles
2020 Outback Premium with the all weather cargo mats
MSRP - 30,848
Dealer price (w/ rebate)--$26,935
The trade-in offset is adding $1K to the total (neg. equity), so total price with fees is $29,118
Drive off total incl taxes and fees and down pmt: $2,000
MF .00085
RV= 57%
Monthly taxed payment is $341/mo
Zip 92108

The trade-in/over mileage burden and 15K mileage seem like pretty gray areas--is this a good deal?

Thanks in advance!

Michaell

Panagram60 said:

Hi there,

I have not signed yet but here is the deal! I have a leased 2018 Crosstrek Premium that is about 13K over mileage (@$.15/mi) in the deal as well.

Lease for 36 months, 15K miles
2020 Outback Premium with the all weather cargo mats
MSRP - 30,848
Dealer price (w/ rebate)--$26,935
The trade-in offset is adding $1K to the total (neg. equity), so total price with fees is $29,118
Drive off total incl taxes and fees and down pmt: $2,000
MF .00085
RV= 57%
Monthly taxed payment is $341/mo
Zip 92108

The trade-in/over mileage burden and 15K mileage seem like pretty gray areas--is this a good deal?

Thanks in advance!

Are you returning your lease or is the dealer taking it in trade? They aren't the same thing.

The MF is marked up the max - the base rate is .00035

I'd work on that, first.

Panagram60

Hmm. They are taking it in trade, saying that I owe $2000 for the mileage overage (and they have to buy the miles) and they are only leaving me on the hook for half in the deal. Thanks!

Michaell

Panagram60 said:

Hmm. They are taking it in trade, saying that I owe $2000 for the mileage overage (and they have to buy the miles) and they are only leaving me on the hook for half in the deal. Thanks!

$2000 is the correct amount for the mileage.

Have you signed for this yet? If not, you should do some independent analysis as to the value of your car, and the payoff value. You may have some equity, given the state of the used car market.

Reach out to CarMax (now here at Edmunds!), Vroom and Carvana for buy bids, and call your current lender to get a payoff. Dealer may be undervaluing your trade.

Panagram60

I did get a Carmax bid, which shows it to be about flat based on the payoff (no equity). So I was thinking that this is not a bad deal since somehow I have to deal with the prior lease mileage situation....? I was also looking at Mazdas and not sure if I could trade in a Subaru at a Mazda dealership and solve the same problem. This will only be my second lease, so all feedback is welcome!

Michaell

Panagram60 said:

I did get a Carmax bid, which shows it to be about flat based on the payoff (no equity). So I was thinking that this is not a bad deal since somehow I have to deal with the prior lease mileage situation....? I was also looking at Mazdas and not sure if I could trade in a Subaru at a Mazda dealership and solve the same problem. This will only be my second lease, so all feedback is welcome!

If CarMax is willing to buy your car outright for what you owe, you'll avoid the mileage charges your local dealer wants to charge you.

I'd show the bid from CarMax to the dealer, and ask them to match it.

Don't split the difference.

Panagram60

Thank you!