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Subaru B9 Tribeca, Car Leasing, SUV
#1 of 362 Subaru B9 Tribeca: Lease Questions
Aug 31, 2005 (4:18 pm)
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Subaru B9 Tribeca. Thanks.
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#2 of 362 Sales Tax--pay upfront or fold into lease?
Sep 01, 2005 (6:11 am)
We live in NY and unlike a traditional lease, NY offers a balloon payment at the end of the term at which point you can chose to buy out the residual value or turn the car in. The tax is on the full value because this is a balloon loan.
Any pros or cons to paying the tax ($2200+) as part of the down payment versus folding it into the lease payments? If we pay it up front we avoid paying interest on the tax but by the same token it basically doubles the money down.
#3 of 362 Re: Sales Tax--pay upfront or fold into lease? [harvpt]
by kyfdx@Edmunds HOST
Sep 01, 2005 (6:17 am)
If the balloon payment program includes GAP insurance, as do most leases, then rolling the tax payment into the lease gives you some protection, in case the car is stolen or totaled shortly after acquisition...
So, if you are trying to approximate a lease, I'd roll it in..
The vicarious liability laws that caused Subaru to stop leasing in NY have been changed.... Perhaps you could check to see if Subaru might start leasing in NY again, shortly?
#4 of 362 lease rates
Sep 07, 2005 (6:17 pm)
Good news: Subaru resumes leasing in NY as of today September 7. We're waiting to hear from the dealer what the rates will be. We've negotiated a price of $31,956 on a 5 passenger LTD with rear bumper moldings, puddle lights, dimming mirror, cargo net, bumper cover, and crossbars. Can you give us an idea of a good money factor and residual? We're having them price it at both 36 and 48 months with $2500 down.
#5 of 362 Updated lease rates
Sep 08, 2005 (8:47 am)
Just heard from the dealer. 36 month, 12K mile lease, $2500 down, $389/month payment on the car based on purchase price of $31,956. Seems high to me. I've asked for the money factor and buyout price but I haven't heard back from the dealer.
#6 of 362 Re: Updated lease rates [harvpt]
Sep 08, 2005 (5:09 pm)
I just wanted to let you know that 36 month/15k mile leases
June: 0.0021 money factor/ 63% residual
July/August: 0.00175 mf/61% residual ( I made my deal in August)
12K leases added 2% to the residual.
Sorry, not sure what they are this month. But the dealer should have no problem giving you the money factor and residual percentage as posted by Chase (Subaru Motor Finance). The residual is what it is, never negotiable. But some dealers may try to make some margin on the money factor (mine did not). Good luck with your deal, and let us know how it turns out....
#7 of 362 Re: Updated lease rates [aix]
Sep 09, 2005 (7:45 am)
but you can negotiate the purchase price ? so if you get that down to invoice and the residual is fixed that should give you a lower lease payment.
#8 of 362 Re: Updated lease rates [aix]
Sep 09, 2005 (8:24 am)
My dealer told me up front that SOA does not allow dealer markups on SOA leases. Residual is based on MSRP. The final lease payment is still based on your negotiated purchase price.
#9 of 362 Re: Updated lease rates [foxbat121]
Sep 09, 2005 (6:38 pm)
Foxbat is right. You can only negotiate the purchase price (cap cost). FWIW regarding leasing, it's generally better to not to pay a cap reduction (down payment), from the standpoint that if your car is totaled in a wreck, the gap insurance will cover the bank's investment, but your down payment is gone...Good luck with the deal. I've had mine a week and love every minute behind the wheel...
#10 of 362 Re: Sales Tax--pay upfront or fold into lease?
Sep 11, 2005 (4:27 am)
Hi harvpt. I agree with kyfdx. If I was going to do a balloon note on this truck, I personally would roll the tax into the monthly payment as well. Good call on waiting to see if Subaru was going to resume leasing in New York. You saved yourself some money in taxes by waiting. Let's take a look at this current lease program for the vehicle that you are interested in. According to the latest information that I have seen, if you were to lease a 2006 Subaru B9 Tribeca 5 Passenger LTD through Subaru's captive finance company right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00155 and 60%, respectively. The numbers for an otherwise identical 48 month lease should be .00185 and 48%.
I noticed that you are considering making a large down payment on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Tribeca would be exactly the same, regardless of whether you had put $2,500 down, or had made absolutely no down payment at all.
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