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Subaru Impreza Lease Questions

561 messages,  Last post on May 16, 2013 at 10:14 AM

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What is this discussion about? Subaru Impreza, Subaru Impreza WRX STi, Car Leasing, Sedan, Wagon

Messages Page 8 of 57

#63 of 561 Switching from a leased Impreza to a leased Impreza WRX by bdumitru

Apr 19, 2007 (10:09 am)

Dear hosts and knowledgeable people around,
 
 I am new to this forum, although I'm old to Edmunds.com. I hope you'll find the time to help a newbie.
 
 In May 2006, I leased a 2006 2.5i manual Sport Wagon. The car is great; however, I am seriously considering terminating the lease early and instead starting a new lease for a 2007 WRX Limited sedan (manual).
 
 My current lease details (on the '06 2.5i Sp. Wagon):
 - MSRP: 18,833; high, I guess;
 - net capitalized cost: 17,004 (after rebates, $1,000 down payment, and negociations); good, I guess;
 - residual: 8,637; low, I now realize;
 - depreciation: remaining 8,367;
 - APR: 2.88% (i.e. money factor: 0.0012); good, I think;
 - term: 48 months;
 - mileage: 15,000/ year;
 
 So now I pay: (depreciation 174 + rent charge 31) * (tax 110%) = 225 a month.
 
 The car is almost 1 year old, with 11,500 miles on it; exceptional condition, practically no wear and tear.
 
 After this long introduction, my questions:
 
 (A) If I return this car tomorrow to the dealership (good one, Day Apollo near Pittsburgh, PA), how much of a hit should I expect? In 4 years, 60,000 miles it would have depreciated $8,368... How much has the car depreciated in 1 year, 11,500 miles, in your opinion? I know I paid 174 * 12 = $2,088 towards depreciation, so I'd subtract that from your number and get an idea of how hard I'll be hit.
 
 (B) Will it help (financially) that I want to lease another Subaru, and that I'm all good with their captive company? All I want is a more powerful car
 
 (C) For a 2007 Impreza WRX Limited (manual!), what invoice should I try to obtain; what residual value; what APR (can I get the same low 2.88%)? I'd do 48 months, 15,000 miles/year, same as I have right now.
 
 (D) Any advice on when should I be doing this, i.e. on when good incentives might show? May, June, July? I'm 100% I want the '07 (completely personal preference on the redesign for '08).
 
 (E) Will insurance go higher (by a lot)? I'm 26, not married, no kids, good job, okay driving record (speeding ticket last year, 10mph extra after many negociations).
 
 I am sorry for posting such a long first message. I do hope somebody will find the time to help out.
 
 Thanks a lot,
 --Bogdan, WRX wanna-be-owner

#64 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [bdumitru] by ateixeira

Apr 19, 2007 (10:21 am)

Replying to: bdumitru (Apr 19, 2007 10:09 am)
Being 25 or over helps a lot. Being married would also help, but rates shouldn't be too bad. Call you agent to get a quote, they can usually tell you in advance.
 
Now is a good time. Later might be slightly better, but even if prices do creep down a tad, selection will dwindle quickly. If you're picky about color, don't wait.

#65 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [ateixeira] by bdumitru

Apr 19, 2007 (11:06 am)

Replying to: ateixeira (Apr 19, 2007 10:21 am)
Hi ateixeira,
 
 Thanks for your reply.
  
 "Being married would also help, but rates shouldn't be too bad."
  
 I know, but... not now, hehe.
 
 Now, I'm more worried about the financial hit I might be taking on returning the '06 2.5i (details in my first message). Any guesstimate?...
 
 Thanks,
 --Bogdan

#66 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [bdumitru] by ateixeira

Apr 19, 2007 (11:31 am)

Replying to: bdumitru (Apr 19, 2007 11:06 am)
The good news is that they do hold their values well. If you sell it alone I bet you can recover 80% of what you paid, which is not bad.
 
Some people prefer the old styling, so that might also help. Sell it privately, though, you'll get killed on a wholesale trade-in.

#67 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [ateixeira] by bdumitru

Apr 19, 2007 (12:32 pm)

Replying to: ateixeira (Apr 19, 2007 11:31 am)
"The good news is that they do hold their values well. If you sell it alone I bet you can recover 80% of what you paid, which is not bad."
 
Well, I can't really sell it
It's leased, so all I can try is to find someone to take over the lease, right? Or am I wrong?
 
How "killed" do you think I'll get?... The car depreciates (according to the lease contract) ~$8,300 in 4 years, 15,000 miles/year. Now it has 1 year, 11,000 miles. Granted, it's the first year But I'm hoping that the depreciation would be something like: 1st year = $3,200; 2nd year = $2,600; 3rd year = 1500; 4th year = 1000. Am I way off?
 
What do people here think?
 
Thanks,
--B

#68 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [bdumitru] by ateixeira

Apr 19, 2007 (1:48 pm)

Replying to: bdumitru (Apr 19, 2007 12:32 pm)
Sorry, missed that important point.
 
In this case the same dealer may be your best bet. He'll be motivated to make the new deal so he may help you get out of the old one.
 
Still, you will have taken delivery of two brand new cars, and New Car Smell is the most expensive smell in the world.

#69 of 561 Re: Subaru Impreza 2.5i Wagon Lease [researchworks] by Car_man HOST

Apr 24, 2007 (4:25 am)

Replying to: researchworks (Mar 24, 2007 6:30 am)
Hi researchworks. While it is a good idea to understand how to calculate lease payments, you can learn how to do so by reading the following article: Calculate Your Own Lease Payment, you don't necessarily have to know how to do so to get a good deal on a lease. Just shop around and negotiate the lowest selling price that you can on the Impreza that you want. You wouldn't finance or pay cash for this car without knowing what its selling price is would you? Leasing it without knowing what the selling price is the same thing.
 
The only charges that you may have to pay at lease-end are an excess mileage penalty if you exceed your mileage allowance, an excess wear and tear penalty if your vehicle is in rough shape, and a disposition fee if the bank that you are leasing through charges one.
 
Car_man
Host
Prices Paid Forum

#70 of 561 Re: Switching from a leased Impreza to a leased Impreza WRX [bdumitru] by Car_man HOST

Apr 25, 2007 (2:38 am)

Replying to: bdumitru (Apr 19, 2007 10:09 am)
Welcome to the leasing discussions, Bogdan. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.
  
You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.
 
The fact that you want to lease another Subaru through Subaru Finance probably will not make much of a difference.
 
If you decide to lease a 2007 Impreza WRX Sedan through Subaru Finance right now for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value would be .00245 and 56%, respectively. When negotiating your lease on this car, make sure to take the $500 lease cash that is currently available on it into account.
 
Car_man
Host
Prices Paid Forum

#71 of 561 RE: Switching from a leased Impreza to a leased Impreza WRX by bdumitru

Apr 25, 2007 (9:43 am)

Hi Car_man,
 
First off, thank you for your detailed reply. This forum lives up to Edmunds.com reputation.
 
I've read my current lease contract in detail. It allows me to end the lease early, provided I pay: I - P - R + F, where:
I = Invoice.
P = Payments made so far (the part credited towards depreciation).
R = Realized value of the vehicle (that me and the dealer agree upon).
F = turn-in lease fee.
Now:
I = 17,000 (in contract), F = 300 (in contract).
Then, hopefully:
P = 175 * 13 = 2,275, since I've made 13 payments of 225 = depreciation 174 + rent charge 35 + tax 10%.
R = 13,415, since that's the trade-in value appraised by Edmunds.com, for 12K miles, outstanding condition.
So I'd have to pay 17,000 - 2,275 - 13,415 + 300 = 1,610.
 
Now, since R is negotiable, the end result may vary; I assume/ hope it won't go north of, say, 1,900. I could factor that in the new lease and pay approx. $40 a month. I know, paying money for a car I won't be driving...
 
Can you please tell me if my process of thought is far off? That is, am I dreaming dreams here or is this actually possible? (I did read the contract very carefully).
 
I mean, having a $2,000 negative equity doesn't sound exactly like a dream, but... I want the WRX really bad.
 
Please let me know of your thoughts.
 
Thanks,
--Bogdan

#72 of 561 RE: Switching from a leased Impreza to a leased Impreza WRX by bdumitru

Apr 25, 2007 (9:49 am)

Hi Car_man,
 
A couple more things, sorry for bugging you: on my current lease I got a 2.9% APR (through Subaru Finance, May 2006) and a bad residual value (aprox 47%). I see that the APR you quoted for the WRX for April 2007 (right now) is significantly worse, i.e. 5.9%, but in the same time the residual value is way better, i.e. 56%. So...
(A) Do I stand any chance of "keeping" the old APR for the new lease? Or was that just an offer that I got last year, and I got it because it came with a bad residual?
(B) Any "prediction" for the incentives for May 2007, through Subaru Finance? That is: APR (or money factor), residual, cash rebates? For leasing a WRX (possibly Limited), 48 months, 15K miles/year, I mean.
(C) Can you please tell me where do you get these numbers from? Googling "Subaru Finance" yields no good results...
 
Thanks so much,
--Bogdan

Messages Page 8 of 57

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