Last post on Dec 06, 2013 at 9:43 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Subaru Outback, Car Leasing, Sedan, Wagon
#266 of 551 Re: 2010 3.6R Premium perception [nickr1]
Jan 25, 2010 (7:15 pm)
You obviously don't know much at all about leasing. Leasing is not around for people who can't get credit to buy a car. In fact, the opposite is true. You have to have near perfect credit to qualify for the best lease rates just as with buying. The worse your credit is the worse your lease deal is. If you have terrible credit it will likely be more expensive to lease than to buy.
Lease prices vary by manufacturer and model. If people are willing to pay $400 on an Outback 3.6R lease why would Subaru want to let anyone lease one for $200? It's simple supply and demand. The demand is high and supply is low. This isn't a Ford Focus. This is a new style CUV/SUV that won Motortrend SUV of the Year and numerous other awards.
Also, you are saying in other posts that it makes no sense to lease a $29,000 Outback for $400, correct? Wrong. If you were to make a great deal with no money down except first payment you would be lucky to walk out with a 36 month lease for $400. However, to buy that exact same Outback on a 5 year loan at 2.9% and 7% sales tax your payment is well over $550. So by leasing you are saving $150 a month. $150 X 36 months of the lease = $5,400. Do you really think you are going to get $5,400 more than the Outback is worth vs what you still owe if you sold or traded it in after 3 years of your traditional 5 year loan?
Leasing makes perfect financial sense to me. I currently am leasing a 2010 Ford Edge SEL AWD for $297 on a 27 month lease with no money down and also a 2009 Tribeca SE for 36 months $360 with nothing down. Both cars had a "selling price" of just over $28,000. So either way I am saving $200-$290 a month vs buying ON EACH VEHICLE ($400-$580 per month total). Does that make sense?
#267 of 551 Re: 2010 outback 2.5 limited questions [scarman]
Jan 25, 2010 (8:15 pm)
A lease takes the actual selling price (you still need to negotiate) and a residual (they hope to sell in xx months price) price set by the supplier and many industry factors. Fudging the residual price to be higher was attractive a few years back, now its not, hence leases cost more.
The difference PLUS the local taxes and State DMV fees get added as the amount to be financed.
Depending on the interest rate and down payment and other "inception" fees its then simple math.
Typically, leases work well for mid to high end price cars and especially those that hold value (they have higher % residual), typically they are not attractive for low cost cars or those that loose a large % in the first 3 years.
I have both leased and financed, currently leasing a Subaru is not very attractive vs purchase at 2.9%, assuming you could find the vehicle you want.
If you like to replace your car every 3 years, leasing can be an excellent deal, averaged over 5-6 years it probably costs more, but you get to experience the new car smell more often.
For what its worth, I haven't leased a car I would like to keep in the last 10 years, so leasing worked for me, hopefully we will like the 3.6R Limited we ordered (to buy) many weeks ago - when we finally get it.
#268 of 551 Thoughts Lease Quote for 2010 Outback
Jan 26, 2010 (2:05 pm)
Here is dealer quote for 2010 Outback 2.5 Premium:
Sale Price on this vehicle is$25,698.00.
M.S.R.P. for this vehicle is $27,355.00.
36 months W/ 12K miles per year, $1,167 due at start which includes 1st mo pmnt and dealer fees & NO CASH CAP REDUCTION $350.61/mo plus tax
Any thoughts, comparisons. Does this seem appropriate sale price and lease factor/residual applied. Anyone get better?
#269 of 551 Re: Thoughts Lease Quote for 2010 Outback [tonbob]
Jan 28, 2010 (8:08 pm)
Are certain states different in what has to be paid on a lease deal? I don't get why people are paying $1100 in "dealer fees." I always pay the first payment and leave. They never have asked me to pay anything else. I then have 30 days to register the vehicle at the DMV. Seems to be a waste of money to pay all the "dealer fees" even if it isn't cap cost reduction. It's still coming out of your pocket.
I always tell the dealer to give me their best sale price and then tell them I am not paying any of their bullcrap fees like doc fee, etc. The only fee that is legit is the acquisition fee which you will never get out of paying.
#270 of 551 THE QUICK AND DIRTY LEASE CALC FORMULA FOR DUMMIES
Jan 29, 2010 (10:56 am)
Ateixeira - You said "I would pay $200 for it, that's it. Must be a lot of people still living on credit or willing to default on a lease. Sorry, imho, $400 a month for this car is crazy".
You truly do not have a clue about leasing or the relationship between a car's MSRP and what it should cost you. You want the quick and dirty? Here it is. So easy a caveman could do it(sorry caveman)
1. Take the MSRP x Residual rate= $Residual Value
2. Subtract Resid Value from the negotiated sale price, that = the amount you are borrowing.
3. Divide the amount borrowed by the term (I use 39mo) = base payment
4. Take (MSRP + Residual Value)x money factor = finance charge
5. Add # 3 and #4 and done you have your payment.
For example I just leased (today) a '10 OB premium w/ CVT & AWP for 39 mo 12k miles.
1. MSRP $26790x.51=$13,663
2. $23266-$13663=$9603 (sale price of $23266 reflects a $700 below invoice deal plus additional money down in this case, INVOICE WAS $25,610)
3. 9603/39= $246 per mo base
4. (26790+13663)x.0015= $60 per mo interest
5. BAM! - $306 per month base payment. (add MASS sales tax of .0625)
6. FINAL PAYMENT W/ Tax = $327.
Easy peasy, if you can't do this, you shouldn't lease a car b/c you will get screwed. Trust me, I was a sales manager for a dealership for 2 years and sold cars 3 years before that. Now I'm an accountant and I love to torture salesman!! What goes around comes around.
So if any of you are looking for a good deal, you better look hard b/c up here in the NE, inventory is super low, they have not been able recover the inventory levels since cash for clunkers, but you should expect to pay anywhere from $100 over invoice to $700 below. (that $700 is holdback - whole different discussion). With just fees down and no additional cap cost reduction(down payment) you can expect to pay near $400 per month to lease this car. Good luck people!
#272 of 551 Re: THE QUICK AND DIRTY LEASE CALC FORMULA FOR DUMMIES [ateixeira]
Jan 29, 2010 (11:08 am)
Sorry bro, don't get your panties in a bunch, didn't mean to ruin your day
#273 of 551 Re: THE QUICK AND DIRTY LEASE CALC FORMULA FOR DUMMIES [my1stscoobydoo]
Jan 29, 2010 (11:09 am)
Check out the smiley with the tongue sticking out...clearly you didn't.
#274 of 551 Re: THE QUICK AND DIRTY LEASE CALC FORMULA FOR DUMMIES [ateixeira]
Jan 29, 2010 (11:22 am)
Sorry man, its all good in the hood. I was just trying to be helpful and sarcastic at the same time. prob not a good mix.
#275 of 551 Re: THE QUICK AND DIRTY LEASE CALC FORMULA FOR DUMMIES [my1stscoobydoo]
Jan 29, 2010 (11:31 am)
No hard feelings, I basically reacted in a similar fashion, 200-what?
There is a $259 lease on the Forester right now, IIRC, but it's with a couple of grand down.
You might find a $199 lease on a compact car, like a Civic perhaps, but even then it'll be with some cash down and that's probably a low-end model (LX or VP).
$200 on a loaded Outback ain't happening unless you put half the cost in your down payment.