Leasing a car can be a great way to take care of your personal transportation needs without actually owning a car. The monthly payments are generally lower than if you buy a vehicle. Most lease contracts are for three years. You enjoy using the car and then turn it in at the end of the lease. But what if your needs change during those three years? A Pull Ahead Lease Program can help you make a change to a new vehicle early and even save you some money. Here's how it works.
What are Pull Ahead Lease Programs
What are Pull Ahead Lease Programs?
Pull Ahead Lease Programs are offered by the automaker. In fact, if you lease your current car, you may have received such an offer by mail or email. These kind of incentives offer the ability to turn in your present lease car early for a new one without an early termination fee. This can be attractive to people who like the idea of getting a different vehicle early and the offer often can save you money with lower monthly payments and even forgive a certain number of payments that are left on your lease.
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You may have received a Pull Ahead Lease offer from the car manufacturer whose goal is to pull you back into the leasing cycle before your current lease expires. Customers often start getting such offers when they are about halfway through their lease. But why would the automaker do this? It's not simply about making a new lease deal with you.
The manufacturer uses Pull Ahead offers in order to spread out the impact of returning cars to the marketplace. If a lot of the same make and model of car suddenly end their leases, they all hit the auction block at the same time, driving down the cars' values. To avoid that, the automaker hopes to spread out these returns by getting some of them back early. So, they offer you a deal that's hard to refuse.
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A Pull Ahead Lease deal may also be offered because a dealership is low on used car inventory and wants your car. Turning in your vehicle early can be a win for the automaker, the dealership, and for you.
What's in it for you?
Pull Ahead Lease Program offers from automakers have well-defined benefits. They will often waive your last few car lease payments and other costs if you agree to lease a new car now. Some offers agree to forgive disposition and damage fees or charges for excessive mileage. They generally save you money on your current lease and give you a killer deal on your next vehicle lease.
Dealerships offer Pull Ahead Lease deals as well. They often agree to get you out of your old lease and into a new car with no money out of pocket and offer lower monthly payments. If you receive such an offer, read it over carefully to make sure you understand the terms, especially concerning your lease car's allotted mileage and any possible fees you would be responsible for. If you intend to lease another vehicle at the end of your current lease, a Pull Ahead Lease Program could save you major money, especially if you are in the final year of your current lease contract.
Next Steps
Does a Pull Ahead Program make sense for you? To find out, first contact your lender to find out your "lease payoff amount." You can access your account online or by phone. Then compare your payoff amount with the "residual value" of your lease car. If you owe less on the lease than the car's appraised value, you'll easily be able to get into a new lease car with no money out of pocket.
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In the current auto marketplace returning lease cars are getting top dollar at dealerships and manufacturers are offering very attractive incentives to get those cars back to dealer lots. That could put you in an excellent position to get into a Pull Ahead Program, lower your new car lease payments, get some additional options, and save you some money.
When a Pull Ahead Lease Program Makes Sense
Life happens. Sometimes, the three-year car lease you are in includes a vehicle that no longer meets your needs. Maybe your family is growing, and you need a bigger or different mode of transportation. A Pull Ahead Lease Program can get you into that bigger or better vehicle without committing to higher monthly payments. Some programs cover a predetermined number of payments on your current car or offer a cash incentive toward the purchase or lease of a new car, truck, or SUV. If you have traveled over the allotted mileage limit or number of miles allowed according to your lease contract, these programs often forgive the penalties. A Pull Ahead Lease also makes sense if you move or change jobs and your commute is different. Basically, it can be an advantage whenever your vehicle needs have changed and you'd rather get out of your contract early, change vehicles and save some money all at the same time.
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To recap, these manufacturer and dealer offers could make sense for you if your vehicle needs have changed, if you want to lower your payments, if you've exceeded your allotted miles and don't want to pay the fees, or if your life circumstances have changed.
Let Lithia Help
If a Pull Ahead Lease Program sounds interesting to you, find out more through your local Lithia Motors dealer. We've been finding solutions for our customers' personal transportation needs for over 75 years. If you have questions, we have answers. Let Lithia help you, because we want to keep you as a customer for life!
