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Prices Paid: Buying & Leasing Experiences Subaru Forester Lease Questions
368 messages, Last post on Nov 28, 2009 at 4:54 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: ursus (Feb 13, 2009 7:00 am) If you have the $720 available for the tax, why wouldn't you just park it in your savings account or other no risk investment, then siphon the $20 each month from it. Certainly, we are not talking about a big difference, but it is more than zero. thanks
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Replying to: tsxowwner (Feb 13, 2009 8:14 am) Plus, you will pay interest on the sales tax by adding it to the adjusted cap cost. By "parking" these taxes in a savings account even at 2%, you will earn about the same amount as you'll pay in finance charges (on you sales tax included in the lease payments), even if you don't "siphon the $20 each month" from your savings account. If you do "siphon the $20 each month", then you will lose money.
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Replying to: ursus (Feb 13, 2009 11:02 am) The lease payment is determined first THEN tax is added by multiplying your lease payment by (1+ your state tax rate) Ask anyone. No economic advantage in this case to have the lower payment. Better to park the money in your savings account to 1) earn a little interest 2) have cash on hand in case of emergency
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Replying to: tsxowwner (Feb 13, 2009 11:15 am) Many, many states charge the tax upfront (some on the entire sales price!). regards, kyfdx
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Replying to: kyfdx (Feb 13, 2009 11:17 am) 
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Hey Car_man! I usually pay cash for all vehicle purchases but am having people tell me that I am foolish for not leasing since I seldom keep cars for more than a year or two. I am looking at an '09 Forester Limited that stickers for $27350. I don't want to lease for more than 24 months. I can buy the car outright for $24750. If you could be so kind as to give me your opinion on buying outright versus leasing for this situation, it would be greatly appreciated. I can usually resell my vehicles pretty easily by asking for KBB Private Value since people who know me know that I am very easy on cars and scrupulously maintain them. I drive 12000 mi/year and would be looking for a lease that allows 12000 mi. I know that Foresters keep about 61% of their value after 3 years and find it difficult to see that leasing for 24 months would be a better deal than buying outright. All the jargon that is used in this forum is unmitigated gibberish to me because I know nothing about the process, so if you would be so kind as to avoid that in your explanation or opinion, it would be very helpful to me. What I would like for you to help me determine is based upon the following premise. I believe that at the end of two years I will be able to sell my Forester for more money, thus expending less, by buying outright than by leasing. Feel free to blow my thesis out of the water. If you could provide some comparatives or numbers for my situation, it would be very helpful. Thanks, Pete |
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Replying to: pano1 (Feb 15, 2009 9:08 pm) Having said all that, you can't get a good deal leasing just any car. The numbers are the sole factor. You have to find a 24 month lease that has a high residual value (around 70% is good) and has at least a midrange money factor. Not sure on the Forester. The Legacy has numbers like this for 24 months. In fact the 24 and 36 month leases are about the same monthly payment. This is normally not the case. 24 month leases normally are $50-$100 more per month.
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Replying to: indianajohns (Feb 16, 2009 8:53 am) What I'm asking here is at the end of my 24 month lease, will the lease be more cost effective than me buying outright and then reselling at a value higher than what I think a residual value is?? Example: my local paper is advertising a 2009 Toyota Camry on a 24 month lease for $9995. The car stickers at $22395 and the residual is $13935. This is a one payment ($9995) with 15K miles per year. So I know that for $9995 I can have a Camry for 2 years and walk away. My out of pocket is $9995. Now, say I buy the same Camry for $19995 have it for two years with no mileage penalty and then sell it in two years for $13935. My out of pocket is $6000. So in my example here I saved $3000 by buying outright rather than leasing. So indianajohns, can you see where I'm coming from now?? Remember that I am a virgin and unlike you, I don't know the workings of lease like you aces here do, so I might be full of it and that's why I am seeking your counsel. Thanks for your time. Pete
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It may be worth it to find out if the new tax deduction still applies if you don't pay all the tax in a given year, since they just passed that car-buying incentive. Maybe you deduct it little by little, as you pay the state sales tax.
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Replying to: ateixeira (Feb 18, 2009 11:00 am)
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