Upside down

[Anonymous]

I'm looking to trade my leased '15 IS250 to finance a 2017 Subaru WRX Limited. Lease is up in August of 2018 and the last time I got my car appraised, it was at $26k and the payoff is ~$34k at the moment. Now the WRX is listed at ~$33k but I'm sure after taxes and fees, it'll come out to ~$35k-$36k. So what would that put me in terms of being upside down, $8k? I'm also planning on putting about $4k-$5k towards the WRX. That would bring the upside down to like $3k, no?

That was the first set of questions, haha. As far as payments would go assuming after all the upside down, taxes, and fees are added, out the door being, say, $38k with 9-10% interest, would it be safe to say I'd be looking at under $600 a month with a 72 month term? 

My credit scores went down a bit due to have a few balances on some cards, totaling to $10k, but I've always paid on time with LFS, in fact that payment has been on Auto Pay since I got the car.

[Anonymous]

Not sure exactly how trading in a leased vehicle works exactly but I'll comment on a few other things.

If you are figuring you'll be at close to 9-10% interest rate expect your payment to be almost $800 a month on a 60month term. That's a crap ton of money for a WRX.

I had a 2015 WRX, drove it for 2 years, and 45k miles then traded it in for a 2016 STi. Fortunately I put a lot down on the WRX, so I had a decent amount of equity to carry over.

On another note, if I was in your shoes this is what I would do:

The 2018s will hit the lots in early May, drive the Lexus till the lease is up in August. From now till August work on your credit to get the best possible rate through their captive financing bank which is chase, or have a check in hand from another bank.

The 2018 WRX will probably get some updates considering it's the 3rd year of the new body style, I would honestly at least wait until the 2018s come out. If you aren't totally sold on a 2018 you can get a 2017 at a reduced rate.

I purchased my 2016 STi as 2017 hit the lot and I paid $1000 under invoice for my car, and it worked out close to what your estimating will cost for your WRX. Just some food for though, but I think your best bet would be to stick with the lease through the term.

Hope this helped and good luck!

[Anonymous]

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@Anonymous wrote:
Not sure exactly how trading in a leased vehicle works exactly but I'll comment on a few other things.

If you are figuring you'll be at close to 9-10% interest rate expect your payment to be almost $800 a month on a 60month term. That's a crap ton of money for a WRX.

I had a 2015 WRX, drove it for 2 years, and 45k miles then traded it in for a 2016 STi. Fortunately I put a lot down on the WRX, so I had a decent amount of equity to carry over.

On another note, if I was in your shoes this is what I would do:

The 2018s will hit the lots in early May, drive the Lexus till the lease is up in August. From now till August work on your credit to get the best possible rate through their captive financing bank which is chase, or have a check in hand from another bank.

The 2018 WRX will probably get some updates considering it's the 3rd year of the new body style, I would honestly at least wait until the 2018s come out. If you aren't totally sold on a 2018 you can get a 2017 at a reduced rate.

I purchased my 2016 STi as 2017 hit the lot and I paid $1000 under invoice for my car, and it worked out close to what your estimating will cost for your WRX. Just some food for though, but I think your best bet would be to stick with the lease through the term.

Hope this helped and good luck!

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Got some numbers ran from a friend of mine that works at Lexus (he can sell new Subarus) and he told me that going with the 72 month term, I'll be gettng 4% interest but the monthly will be between $577 and $607 a month with $4k down. $250 of that $577-$607 being $250 from the Lexus if I were to actually trade it in for the WRX.

I'm just gonna wait till June/July of 2017 when there's better deals out, I'll be less upside down, and I'll have more to put as a down payment. It's either trade it in by June/July or have someone take over the payments by then that way I won't be upside down going into the Subie.

Bummed out that I have to stick with the car for the next 6-7 months because I'm genuinely bored of it, but it'll be saving me money in the long run waiting a few more months. That and I'll have my balances paid off by then so my credit will be looking much better.

[Anonymous]

Wait for the 2018, I'm a 2016 owner and a few buddies that drive a 2017 have problems with oil leaks at 700 miles. Coming in for warranty work before the break in period is over really sucks.
577 to 607 a month is pretty steep for a wrx, even though you're bored of the car the smartest decision would be to sell your car and break even. Negative equity that rolls over will be taxed as well on top of your new car price.
Subaru finances through Chase, so a 36 month lease for 0% is a lot better than buying at 4% for 72months. The wrx holds it's value real well, so leasing it is a good option. I had the car for one year and I broke even already, and by next year i'll be on the plus side with 0 down on it.
I kind of regret not getting the STI, maybe look into one instead? I'm already bored with the wrx to be honest lol.

[Anonymous]

Definitely agree with above. That's a step monthly payment to have to deal with, especially for 6 years.... and unfortunately if you get bored of it (which you will at some point) it will just be a roller coaster ride of negative equity.

And @getgaben I got bored with the WRX and got the STi. No regrets, it's an awesome car. STi fills me with happiness every time I get in it!!

[Anonymous]

@Linsub
Man I'm so jealous haha. I drove in a 2007 and 2016 sti and just fell in love with the platform recently. It's surprising on how a 2016 wrx feels different compared to a 2016 sti. Hell even the 2007 one felt better than mine. The gearbox is worlds apart and I've been eyeing at the new sti's for a good moment now, but I know it's not going to fit my budget requirements. I'm trying so hard to be patient right now and putting my finances first.

OP get an STI!

[Anonymous]

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@Anonymous wrote:

Wait for the 2018, I'm a 2016 owner and a few buddies that drive a 2017 have problems with oil leaks at 700 miles. Coming in for warranty work before the break in period is over really sucks.
577 to 607 a month is pretty steep for a wrx, even though you're bored of the car the smartest decision would be to sell your car and break even. Negative equity that rolls over will be taxed as well on top of your new car price.
Subaru finances through Chase, so a 36 month lease for 0% is a lot better than buying at 4% for 72months. The wrx holds it's value real well, so leasing it is a good option. I had the car for one year and I broke even already, and by next year i'll be on the plus side with 0 down on it.
I kind of regret not getting the STI, maybe look into one instead? I'm already bored with the wrx to be honest lol.

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Thought it thru more today and I'm just gonna wait till August of next year with a year left on the lease to trade it in and do what I did with my car. Get a 2017 when the 2018s are already on the lot and get the best deal possible. Finance the Subie tho, for sure. Planning on building the engine and a couple other things I won't be able to do to a lease haha.

As far as the STi, a friend of mine that leased an STi told me that the engine the STi's have aren't as reliable as the engines in a WRX. Being that I'm gonna keep the car as opposed to having it for a couple years and trading for a different car, I've gotta go with a car as reliable as possible. That and the STi is $10k more for a few things that wouldn't justify me going up to that. More into stance than track, really

[Anonymous]

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@Anonymous wrote:
Definitely agree with above. That's a step monthly payment to have to deal with, especially for 6 years.... and unfortunately if you get bored of it (which you will at some point) it will just be a roller coaster ride of negative equity.

@Anonymous @Anonymous I got bored with the WRX and got the STi. No regrets, it's an awesome car. STi fills me with happiness every time I get in it!!

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Highly doubt I'll get bored of this one haha. My IS250 is a snail and it's an automatic , that's why I got bored of it. The transmission didn't really bother me until like two weeks ago when I drove my friend's STi lol. But I test drove one last week at my local Subaru and I fell in love with it tbh. You're most definitely right about the payments though. Again it'd be either wait it out or someone takes over the lease. Which I doubt anyone would want to take over the lease but I'll post it up on leasetrader/swapalease once all my cards' balances are down to 0

[805orbust]

Heck, post it up there now... what have you got to lose?

[805orbust]

Ya crazy kids