Last post on Jul 22, 2013 at 12:44 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Subaru Legacy, Car Leasing, Sedan, Wagon
#174 of 608 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 608 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 608 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.
#177 of 608 Re: $215/ month $0 down Lease [altimate]
by kyfdx@Edmunds HOST
Aug 14, 2008 (2:44 pm)
Do you get back the pro rata portion of your money attributed to the unused lease period
Yup.. that's how most pre-paid leases work.. As opposed to just making a big CAP cost reduction, which puts that money at risk...
#178 of 608 Re: $215/ month $0 down Lease [ateixeira]
Aug 15, 2008 (2:54 pm)
I hope Subaru isn't going to screw itself over like Chrysler did. The Legacy looks really promising but 80% is crazy high!!! Oh well, as consumers lets all take advantage of this.
Does anyone know if it is 80% for all the trims?
#179 of 608 Re: $215/ month $0 down Lease [hellagrant]
Aug 15, 2008 (4:27 pm)
My understanding from my salesperson is that only the SE model is getting this type of residual.
#180 of 608 lease quote - question
Aug 19, 2008 (4:36 pm)
I just got quoted on a lease and want to see if it's a good deal or not.
09 Legacy Limited
$23,907 price (I get below invoice b/c my employer)
$344 month (includes tax)
36 months - 15K miles/yr
.00255 money factor
Thanks for your help!
#181 of 608 Re: lease quote - question [chambers134]
Aug 19, 2008 (5:19 pm)
I can't say how good or bad that deal is.
However, the SE model has such a great lease deal you might want to consider it.
I was quoted 320/mo.(inc tax) on a two year,15000 mi lease with nothing out of pocket. The price would have been $50/mo. lower but I added aftermarket leather, XM radio and 15000 mi up from 12000 on the standard lease.
The limited has some extras but if you can save 50-100/mo. and a 1500 downpayment I would think that would be a great alternative.
#182 of 608 Re: lease quote - question [altimate]
by kyfdx@Edmunds HOST
Aug 19, 2008 (5:29 pm)
I think we are comparing the 2008 SE with the 2009 Limited..
#183 of 608 Re: lease quote - question [kyfdx]
Aug 19, 2008 (6:28 pm)
No, we are definitely talking about a 2009 Legacy SE. In fact, the dealer is waiting for delivery of these cars.`