Auto Lease Pull Ahead Programs

[nycsimone]

---

@lhcole77 wrote:

---

@nycsimone wrote:

---

---

The VW credit pull ahead program is 3 months. Any other months the dealership is saying they're covering...are just being rolled over into your new car.

Basically how it works is they get a a dealer buy out from your current leasing company and then subtract the value of your vehicle and the difference is what is rolled over into your new vehicle (or credit if its worth more than the payoff...but it's somewhat rare).

---

Are you speaking from experience?

I have read two posts online where customers took their leases in 5 and 6 months ahead of schedule and ALL payments were paid out, NONE were rolled into the subsequent lease and purchase.

I guess I was wanting to see if anyone on here has ever had experience with a pull ahead that was more than 6 months and that no payments rolled into future lease/purchase.

---

I used to work in a car dealership. I am very familiar with how leases work. A dealership doesn't just "eat up" the remaning payments. One way or another they're rolled into the new vehicle. They can show on paper that they eat up the remaining payments but what they're doing is not giving you as big of a discount or taking it out on one of the rebates. There's no such thing as payments just going away. What they'll most likely do is get a dealer payoff and buy the vehicle from the leasing company, then apply the value of the vehicle fo that payoff and any remaining amount is negative equity carried over into your new vehicle.

[nycsimone]

Also, there's specific criteria you need to meet in order to qualify for a pull ahead program. Usually your lease must be within 6-8 months of the end of the term and they don't have it every single month.

A quick Google search shows the last VW pull ahead program was in April and at that point your lease needed to end by the end of 2020 to qualify. I don't see a current VW pull ahead program for July or August.

[lhcole77]

---

@nycsimone wrote:

---

@lhcole77 wrote:

---

@nycsimone wrote:

---

---

The VW credit pull ahead program is 3 months. Any other months the dealership is saying they're covering...are just being rolled over into your new car.

Basically how it works is they get a a dealer buy out from your current leasing company and then subtract the value of your vehicle and the difference is what is rolled over into your new vehicle (or credit if its worth more than the payoff...but it's somewhat rare).

---

Are you speaking from experience?

I have read two posts online where customers took their leases in 5 and 6 months ahead of schedule and ALL payments were paid out, NONE were rolled into the subsequent lease and purchase.

I guess I was wanting to see if anyone on here has ever had experience with a pull ahead that was more than 6 months and that no payments rolled into future lease/purchase.

---

I used to work in a car dealership. I am very familiar with how leases work. A dealership doesn't just "eat up" the remaning payments. One way or another they're rolled into the new vehicle. They can show on paper that they eat up the remaining payments but what they're doing is not giving you as big of a discount or taking it out on one of the rebates. There's no such thing as payments just going away. What they'll most likely do is get a dealer payoff and buy the vehicle from the leasing company, then apply the value of the vehicle fo that payoff and any remaining amount is negative equity carried over into your new vehicle.

---

Thank you for sharing this. So what about the three payments? Are those rolled in? Or are those actually paid off?

And if the offer is extended from VW Credit, are they the ones making the final 3 payments? Or is the dealer?

[Anonymous]

---

@nycsimone wrote:

---

@Anonymous wrote:

Is it even worth leasing then for such short period of time, wouldn't it be better to just do a traditonal 60 mo term? I would think at least on a regular contract you'd have built up equity, where on a Lease you're just paying to use a car for said duration. Like renting with no equity building. 

That aside, I thought dealers were being real hesitant about accepting lease returns right now due to unsold inventory?

As for OP, you should be able to call their Finance dept. and ask what options are available.

---

I don't think you understand how leasing works. Your lease payments absolutely do go towards building equity in the vehicle. The only difference is that after the lease period is over you have the option to walk away without worrying about a thing.

Let's say you lease a vehicle that's $20,000. Most leases are 36 months. The residual value of the vehicle after 36 months is forecast to be $10,000 (50% RV). So for 36 months you're making payments on the $10,000 difference. Each payment you make goes towards reducing that $10,000 amount. You of course also pay a little interest on those payments but it's usually under 2% (better than a purchase most times!). After 3 years you can buy that vehicle for $10,000 which is the predetermined residual value. You can also at any point get a payoff amount (the residual value + remaining payments) and buy the car, trade it into a dealership etc.

Most people don't like leases because they don't understand leasing.

---

Yes, I get how leasing works, I'm in one. And I realize now that I worded it wrong. What I was questioning was returning the vehicle early and still having 13 months worth of payments left as mentioned above. Where do those go? What I have read indicates that it is applied to the new vehicle, so it seemed to me as not worth it. 

[nycsimone]

---

@lhcole77 wrote:

---

@nycsimone wrote:

---

@lhcole77 wrote:

---

@nycsimone wrote:

---

---

The VW credit pull ahead program is 3 months. Any other months the dealership is saying they're covering...are just being rolled over into your new car.

Basically how it works is they get a a dealer buy out from your current leasing company and then subtract the value of your vehicle and the difference is what is rolled over into your new vehicle (or credit if its worth more than the payoff...but it's somewhat rare).

---

Are you speaking from experience?

I have read two posts online where customers took their leases in 5 and 6 months ahead of schedule and ALL payments were paid out, NONE were rolled into the subsequent lease and purchase.

I guess I was wanting to see if anyone on here has ever had experience with a pull ahead that was more than 6 months and that no payments rolled into future lease/purchase.

---

I used to work in a car dealership. I am very familiar with how leases work. A dealership doesn't just "eat up" the remaning payments. One way or another they're rolled into the new vehicle. They can show on paper that they eat up the remaining payments but what they're doing is not giving you as big of a discount or taking it out on one of the rebates. There's no such thing as payments just going away. What they'll most likely do is get a dealer payoff and buy the vehicle from the leasing company, then apply the value of the vehicle fo that payoff and any remaining amount is negative equity carried over into your new vehicle.

---

Thank you for sharing this. So what about the three payments? Are those rolled in? Or are those actually paid off?

And if the offer is extended from VW Credit, are they the ones making the final 3 payments? Or is the dealer?

---

If there is an active VW pull ahead program and you qualify, then VW will credit you for those last 3 payments. They can do this because they own the vehicle. The dealership does not. Obviously you're required to finance or lease another vehicle with them so they do it because it's good business. If you have any other payments you're responsible for them. So if you simply turn in your vehicle early, all those remaining payments get rolled into your new car. If the value of the car is high enough the dealership can purchase the vehicle from the leasing company and the difference between your "trade-in value" and what the dealership pays to purchase the vehicle you're responsible for...once again rolled into your new financing.

[nycsimone]

---

@Anonymous wrote:

---

@nycsimone wrote:

---

@Anonymous wrote:

Is it even worth leasing then for such short period of time, wouldn't it be better to just do a traditonal 60 mo term? I would think at least on a regular contract you'd have built up equity, where on a Lease you're just paying to use a car for said duration. Like renting with no equity building. 

That aside, I thought dealers were being real hesitant about accepting lease returns right now due to unsold inventory?

As for OP, you should be able to call their Finance dept. and ask what options are available.

---

I don't think you understand how leasing works. Your lease payments absolutely do go towards building equity in the vehicle. The only difference is that after the lease period is over you have the option to walk away without worrying about a thing.

Let's say you lease a vehicle that's $20,000. Most leases are 36 months. The residual value of the vehicle after 36 months is forecast to be $10,000 (50% RV). So for 36 months you're making payments on the $10,000 difference. Each payment you make goes towards reducing that $10,000 amount. You of course also pay a little interest on those payments but it's usually under 2% (better than a purchase most times!). After 3 years you can buy that vehicle for $10,000 which is the predetermined residual value. You can also at any point get a payoff amount (the residual value + remaining payments) and buy the car, trade it into a dealership etc.

Most people don't like leases because they don't understand leasing.

---

Yes, I get how leasing works, I'm in one. And I realize now that I worded it wrong. What I was questioning was returning the vehicle early and still having 13 months worth of payments left as mentioned above. Where do those go? What I have read indicates that it is applied to the new vehicle, so it seemed to me as not worth it. 

---

When it comes to trading in a vehicle it really makes little difference if you financed it or leased it. Either way there's a balance that needs to be paid off. If you have 13 payments left then your dealer payoff is the residual value plus the 13 payments (that's what the dealership would buy the vehicle for from the leasing company). If you financed a vehicle the payoff would just be whatever you have left on your loan. Different starting points but the process is basically the same from a dealership. Since the dealership or the manufacturer don't own the vehicle they can't possible just "eat up" any payments. The leasing company is the owner of the vehicle.

[lhcole77]

---

@nycsimone wrote:

---

---

If there is an active VW pull ahead program and you qualify, then VW will credit you for those last 3 payments. They can do this because they own the vehicle. The dealership does not. Obviously you're required to finance or lease another vehicle with them so they do it because it's good business. If you have any other payments you're responsible for them. So if you simply turn in your vehicle early, all those remaining payments get rolled into your new car. If the value of the car is high enough the dealership can purchase the vehicle from the leasing company and the difference between your "trade-in value" and what the dealership pays to purchase the vehicle you're responsible for...once again rolled into your new financing.

---

Thank you. So I go back to my original question---has anyone been able to get more than 3 months as part of a pull ahead program? 

[Scupra]

I don't think VW has a pull ahead program right now.. What others have been able to do in the past on pull ahead really means nothing now, not being mean.. Programs change month to month and you can't compare this months programs to any programs in the past. If an actual pull ahead program is available, it's offered from the manufacturer and not the dealer (like stated above). If a dealer says they are making the rest of your payments and there is no pull ahead program - YOU are paying those payments one way or another. There is a thousand ways to desk a deal and hide profit/costs. If you have 13 months left, just sit tight until you're closer OR there is pull ahead offered by the manufacturer.

[Anonymous]

During Covid, the wife and called Nissan, we still had 14 payments remaining on our lease and they said they would wipe those clean and get us into something else and we won't have payments for 3 months on the new vehicle. The reason Nissan didn't care about the remaining payments is because their used car inventory is low(I don't imagine why, because who likes CVTs? Lol). We were going to wait for the 21 Rogue but Nissan threw us in a Murano Platinum for $95  less a month than they were paying for the rogue. They didn't even bother to do a credit check. So we are all good. 
And No! They didn't roll the remaining payments into the new lease. I first worked out the out the door price. Didn't mention if I wanted to lease or finance. Didn't answer any of the dealers usual incentive questions as well. Don't answer them if they ask about Millitary or a first Responder bla bla bla. Just work on the out the door price. 
With some dealerships you can even say"Nissan, VW or whoever your lease is through, keeps calling me for early pull ahead". The dealership will just take your word for it. Trust me. 

Lastly when I leased my Dodge Challenger SP WB from Chrysler capital..I actually had money down and didn't mention it. I barely fought with the sales/finance manager. I was thinking $500 a month or so. Nope $350 a month for a 36/10 lease. Didn't put a penny down and MyFico Auto Scores are only 632, TU, 635 EQ, and 657 EX. 

Both Chrysler and Nissan are bottom feeding right now am I'm sure it will implode at some point. But oh well.

[Scupra]

---

@Anonymous wrote:

During Covid, the wife and called Nissan, we still had 14 payments remaining on our lease and they said they would wipe those clean and get us into something else and we won't have payments for 3 months on the new vehicle. The reason Nissan didn't care about the remaining payments is because their used car inventory is low(I don't imagine why, because who likes CVTs? Lol). We were going to wait for the 21 Rogue but Nissan threw us in a Murano Platinum for $95  less a month than they were paying for the rogue. They didn't even bother to do a credit check. So we are all good. 
And No! They didn't roll the remaining payments into the new lease. I first worked out the out the door price. Didn't mention if I wanted to lease or finance. Didn't answer any of the dealers usual incentive questions as well. Don't answer them if they ask about Millitary or a first Responder bla bla bla. Just work on the out the door price. 
With some dealerships you can even say"Nissan, VW or whoever your lease is through, keeps calling me for early pull ahead". The dealership will just take your word for it. Trust me. 

Lastly when I leased my Dodge Challenger SP WB from Chrysler capital..I actually had money down and didn't mention it. I barely fought with the sales/finance manager. I was thinking $500 a month or so. Nope $350 a month for a 36/10 lease. Didn't put a penny down and MyFico Auto Scores are only 632, TU, 635 EQ, and 657 EX. 

Both Chrysler and Nissan are bottom feeding right now am I'm sure it will implode at some point. But oh well.

---

Absolutely the worst advice in this thread.. Military and First Responder can OFTEN qualify you for dealer incentives, not answering is just you leaving money on the table. If lease pull ahead isn't available, it isn't available.. Just because you lie to the dealer doesn't mean they are going to just wipe your payments away because "they take your word". 

Anyone looking for a lease needs to go to edmunds and gather buyrate MF, residual and ALL incentives and/or dealer cash available. After you have all of the inoformation, google a lease calulator and plug your numbers in.. You should know the deal you want before ever contacting a dealership in the first place. GL!