Last post on Dec 06, 2013 at 7:25 AM
You are in the Prices Paid - Buying & Leasing Experiences
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Subaru Legacy, Car Leasing, Sedan, Wagon
#167 of 609 Re: [ateixeira]
Aug 04, 2008 (9:39 am)
Don't forget to factor in sales tax on a full purchase. With leases you are only paying sales tax on each payment.
My family just bought 3 subaru SE legacy 24 month leases (all different colors, heh). The deal was too good to pass up, 80% residual on a car is unheard of. It has all the amenities that you could ever need, PZEV, harmon kardon, good gas mileage, electric drivers seat, alarm, 16inch alloys, dual exhaust, and disc brakes all around (My friend bought a 2007 accord, and it has rear drum brakes, what gives?), and AWD.
Cost of ownership with tax (cali 7.75%) for 2 years at 12k miles a year is $5,444, $139 a month with 2k down. I have searched and searched and there is no deal like that around for a new car. I don't think you can even compare a base accord with the legacy special edition, you get a lot of car for such a low price on the subaru. The lease even includes Gap and you can prepay the disposition fee up front for ~$150 instead of 300 at the end, plus they give you around $1k for minor dings and wear and tear at the end.
It is a jp morgan chase lease, and either they want high credit score leases on their books or someone made an error using an 80% residual.
#168 of 609 Re: [stktrader]
Aug 04, 2008 (9:52 am)
That's just a bargain. No other way to explain it.
#169 of 609 Re: Legacy 2.5GT lease information [theras]
Aug 13, 2008 (2:37 am)
You're very welcome, theras. Enjoy your new ride . Oh and don't forget to hop on over to the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with others.
Prices Paid: Buying & Leasing Experiences Forum
#171 of 609 Re: $215/ month $0 down Lease [hellagrant]
by kyfdx@Edmunds HOST
Aug 13, 2008 (3:43 pm)
Yeah.. that's a great deal..
A local dealer is offering the same vehicle for 24mo/20K miles for $159/mo. with $999 total due at signing..
That's probably the best deal going, on anything, right now...
#172 of 609 Re: $215/ month $0 down Lease [hellagrant]
Aug 13, 2008 (7:16 pm)
I was looking to buy a Legacy SE but the lease deal they are running is pretty much irresistable. 09 SE auto. Sign and drive 235/mo. plus tax with auto. and 12000 mi.
I'm looking to add Leather, sat. radio and 15000 mi. Will be around $300/mo. with nothing out of pocket (sorry $8 out of pocket). Also dealer pays first payment so you only make 23 payments. We're talking a car with moonroof, 380 watt stereo, DSC, leather, power seat, XM, alloys, AWD, etc. Fabulous deal. I'm just waiting for my color to arrive and than make the deal.
My understanding is that the residual is a mind boggling 80%. I don't think I've heard or residuals even of 70% on a 2 year lease. I've been looking for the better part of two years so obviously I've had a tough time making up my mind. A test drive and this lease deal and I made my decision in one day.
#173 of 609 Re: $215/ month $0 down Lease [altimate]
Aug 14, 2008 (7:18 am)
They're subsidizing it, for sure.
#174 of 609 Re: $215/ month $0 down Lease [ateixeira]
Aug 14, 2008 (7:29 am)
I'm not sure I understand the residual thing. I prefer to purchase/finance, and I did just that, but I'm open to other things in the future. What exactly is the 80% residual you're speaking of, and how does it benefit?
Someone mentioned Honda using rear drum brakes in their relatively new cars - and mid-level cars too like the Accord & Civic. I've noticed that Honda's really fallen behind in terms with some technological advancements. They don't have Tiptronic transmission options (Shifttronic in Subaru lingo) and they appear to be lacking features compared to the competition. For instance, my `00 Civic LX didn't have ABS, Intermittent Wipers, a second Power Port, etc. Everything in the car was analog, while a lot of competitors were already featuring digital dashboards & trip computers. I don't think Honda started offering that until the 2007ish remake.
The one thing that annoyed me about the new Legacy is that it's still only a 4-speed transmission, I was hoping for a 5-speed for better efficiency on the highway, but I'm over it already. The Legacy is loaded with features that more than make up for it.
The biggest question will be in 3 years from now when the Legacy is paid off -- will my wife let me get a WRX STi to play around with (And on that note - I hope they go back to the mid-2000's styling, I am not very impressed with the 2008/09 remake for the Impreza)
#175 of 609 Re: $215/ month $0 down Lease [pilot1226]
Aug 14, 2008 (7:41 am)
Basically it is their estimate of the value of the car at the end of the lease.
Subaru takes the risk - they buy it back at that value whether it's worth that much or not. Often manufacturers will gamble on high residuals just to lease more cars. Some times it works - BMW residuals are high (so are Subaru's).
Some times it backfires. See Chrysler.
They had to eat such huge losses, they stopped leasing entirely. Chase bank followed suit, and will not lease Chrysler cars either. Residuals are low and I would expect them to drop further.
#176 of 609 Re: $215/ month $0 down Lease [pilot1226]
Aug 14, 2008 (2:37 pm)
Just to simplify the residual thing a little more. If the Legacy has an msrp of $23000 and the residual is 80% ($18400) on a lease that means the leasee is only paying for $4600 dollars worth of the car (23000-18400=4600) Of course, there is interest, Acq. fee and other charges thrown in along with sales tax.
It doesn't work for anyone who wants to buy the car when it goes off lease. Then the purchase price is way to high because of the high residual. I'm planning on doing the lease because it's just a great deal. But obviously it will force me back into the car market in two years.
The dealer also offered me an even better deal that I may consider. Prepay the lease in total up front and the cost of the lease is even lower. Probably a savings of $500-600 over making the payments. Since I have an equity of about $4000 in my trade that would mean I have a paid up 2 year lease with about $2900 out of pocket plus my trade. Not bad especially for this well equipped car.
One issue that has to be checked out is what would happen in a prepaid lease if the car got totaled or stolen prior to lease end. Do you get back the pro rata portion of your money attributed to the unused lease period or are you up the creek for those funds. The salesperson is checking into that. I think I'd want something specific in the lease contract or something in your insurance policy that deals with that issue.