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2013 and earlier-Subaru Forester Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey jms49. Subaru's lease program for 2010 models is indeed different than its program for 2009 models.

    Its current buy rate lease money factor and residual value for a 36 month lease of a 2010 Forester 2.5X Limited with 15,000 miles per year are .00230 and 59%, respectively. The numbers for an otherwise identical lease of a '10 Forester 2.5XT Limited are .00230 and 58%.

    Car_man
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  • csprocspro Posts: 1
    Car_man

    I got an offer on 36 months lease on 2009 forester premium (automatic) with all weather pkg and some other options
    MSRP $25300
    Sale price $22600
    MF: 0.00075
    Residual: 57%

    $1499 drive off and $249 per month (10k miles per year)

    Is it good enough to pull the trigger?

    Thanks!
  • I'm definitely interested in the details of the new program. Do you have the MF/Residual info for both 2009 and 2010 Foresters?

    Thanks in advance!
  • dataportdataport Posts: 6
    Newbie, but this forum is fantastic. Subaru is touting a 2.5X lease, 3 yrs, 12K miles, $1500 down, for $250/mo. My question: Do all the dealers adhere to this, or will I run into pricing variations depending on where I go. Thanks. BTY, I'm in Baltimore area.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi cspro. The Forester that you described probably has a spread of around $1,900 between its full MSRP and its dealer invoice price. The dealer discount that you were quoted is much higher than that. Plus, the money factor that you were quoted is right ion line with Subaru's buy rate for this model. If you like the vehicle, I personally don't see any reason not to go for it.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi vitasthefetus. Subaru's lease program varies by trim level, term, and mileage allowance. I don't believe that you mentioned what any of these variables are, so for now I will have to make some assumptions. Let me know if you want something different.

    Subaru's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Forester 2.5X with 15,000 miles per year are .00075 and 53%, respectively. The numbers for an otherwise identical lease of a 2010 model are .00230 and 59%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome dataport. I'm glad that you find this forum so helpful. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Manufacturers' advertised lease payments often leave a little meat on the bone so to speak in terms of the selling price that they are based upon. That makes sense if one thinks about it. Dealers would be pretty irritated if their manufacturer advertised the thinnest possible deal on a vehicle. As a result, savvy consumers who are in an area that has a decent level of competition are often able to negotiate a lower selling price, and in turn a lower monthly payment than the one that is used in official advertisements for vehicles.

    Conversely, the addition of any options and sales tax will increase a vehicle's advertised payment.

    Car_man
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  • dataportdataport Posts: 6
    Kudos to you Car Man - After going through these posts and your in-depth knowledge, you have cut through the mysticism of leasing. I know see the variables clearly and how they affect the bottom monthly cost. Have a couple more quick questions:

    - It appears that 2 of the variables are 'fixed' by Subaru: lease factor & residual. The only issue left for the dealer is the selling price - is that correct?

    - Are there any issues I need to watch out for that they (Dealer) might try and sneak onto the selling price - freight/destination, extended warranties, etc ?

    - Do you know if they have a threshold Credit Score to be eligible for a lease? I shouldn't have a problem, but will prob obtain the combined score before applying.

    - Lastly, is the residual percentages set in concrete by Subaru - or does the Dealer have any variations available to them.

    Again, a big "Thank You" for cutting through all this red tape.
  • dan2601dan2601 Posts: 1
    This may be complicated, but maybe there is a way. Since the base price is better in the US, it makes sense to at least think of this option. Also, the Cdn dollar has a decent change to appreciate over the greenback over the next few years (resource-based economy and all).

    In short, is there a smart way to do this, considering that I do not have any bank account or credit history in the US?

    Thanks a million,
    Dan
  • ateixeiraateixeira Posts: 72,587
    So the 2010 residuals are higher, but it's the 2009s that have the subsidized interest rates.

    I guess do the math for your given situation.
  • Hello Hello!!

    This forum has really helped me to understand the negotiation details of a lease. I do not, however, understand the relationship between what you initially put down and your monthly payments. For example, I said I would put down 1250 w/12 k miles/year on a 2010 Forester 2.5x Premium (~26,800 MSRP.) The dealer came back with a deal for 10k/year and 396+tax (!!)/month. Granted, that was the first offer. Had I decided to stay longer perhaps we could have gotten somewhere, but still that seemed awfully inflated. Since he wouldn't tell me what the Money factor or residual value % was, I had to backsolve that information, but still how would my $1250 affect my monthly payment total?

    -PLEASE EXPLAIN HOW INITIAL MONEY DOWN AFFECTS MONTHLY LEASE PAYMENTS. If there is a formula, please share.

    THANK YOU SO MUCH :) :) :)
  • Went to test drive and talk about leasing a forester today....salesman acted like he didn't know what I was talking about when I mentioned the lease that is currently advertised by Subaru on their website for the forester (approx 1600 down and approx 250ish a month for 36 months)...he tried to tell me why that price wasn't available and that the 09s were almost all sold out so I'd have to look at a '10. Any advice on how to get the lease terms that are actually advertised? I strongly dislike dealing with care salespeople but really like this vehicle...
  • ateixeiraateixeira Posts: 72,587
    Just a thought, but see if the offer appears on Subaru's web site.
  • Since I never received a response to my question above, I continued my search and found a much nicer deal with Audi. Granted, I had to compromise on having 4WD, and my passengers may feel cramped in the back seat during a 7 hour road trip. Audi's lease offer on the A3s, in the end, steered me away from Subaru. The price matched the worth of the car and that's exactly what I set out to accomplish when I started this journey!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks dataport :blush: .

    You are absolutely right. The main variables for a lease are the money factor, residual value, and selling price. One needs to know the MSRP as well to work up a lease payment, but that number is a constant.

    Some dealers attempt to mark up vehicles' acquisition fees or money factors to try to add additional, hidden dealer profit to deals, but that sort of thing is much more common with luxury brand dealers than with Subaru dealers.

    I'm not sure of what sort of credit score is required to take advantage of Chase's best lease money factors for Subarus, but I can look into it for you.

    Vehicles' residual values are indeed set in stone by the bank that you are leasing through. Individual dealers do not have the authority to alter them.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Interesting question, Dan. I suspect that Chase restricts its leasing of Subarus to the Continental United States and that it would not allow a Canadian to take advantage of its current program, but you can always check with a dealer to find out for certain if that is indeed the case.

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  • conger14conger14 Posts: 25
    Hi,

    I have the following deal in place but I wanted to check on the money factor:

    2010 2.5X Premium
    MSRP 25215
    Sale Price 23400
    MF .00270
    Residual 62%
    15k miles a year
    36 months.

    With a trade of a 2005 subaru legacy GT wagon where they are giving me 9800 and wiping out 2900 in negative equity gives me a monthly payment of 429.17 a month with 1383 due to pay tax/title/registration

    I live in franklin county NY where we pay 8% on sales tax.

    I have checked with four other dealers who can't even come close to this deal, especially with the trade so I'm pretty sure its a very good deal but I'm just wondering about the 2010 MF. Please let me know as soon as you can CarMan.

    Thanks
    Stephen
  • zamozamo Posts: 120
    Residual 62% ?

    Wow, that is excellent !
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi aforester2010. Down payments on leases aka capitalized cost reductions lower the amount financed which in turn lowers your monthly payment. I personally am not a big fan of putting money down when leasing. First of all, the money that you put down does nothing to reduce the end of term purchase price of your vehicle should you decide to buy it at lease-end.

    More importantly, consumers who make large down payments when leasing rosk losing part or all of the money that they put down if their vehicle is totaled in an accident or stolen and never recovered. Even though it means that your monthly payment will be slightly higher, you will be better off going with a zero down lease.

    You may want to check out the following articles on leasing that are available here at Edmunds.com prior to finalizing your deal
    : 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Stephen. Chase's (Subaru runs its special lease offers through them) current buy rate lease money factor for a 36 month lease of any 2010 Forester is currently .00230. Make sure that the dealer uses that factor to calculate your vehicle's monthly payment.

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  • Does Subaru/Chase offer 4 year leases? If so, does the money factor generally go up or down as the term increases.
  • ateixeiraateixeira Posts: 72,587
    The A3 is much smaller, but those sure are nice. You got a Fronttrak? I'm not surprised you paid less, the Forester is bigger than the Audi Q5.
  • Hello Car Man,

    I am interested in leasing a 2009 or 2010 Forester 2.5X (automatic) base model.
    I'd like to know current MF and RV for 24 month lease. I am already in contact with two local dealerships via the internet and would like to make sure they are giving me the correct numbers. Thank you very much!
  • Hello again,

    I contacted Cerritos Subaru regarding leasing a 2010 Subaru Forester 2.5X (auto). Here is what they came up with:

    2010 Subaru Forester 2.5X
    Color: Black or Sage Green
    RETAIL MSRP: $ 22,700.00
    Your Eprice: $ 21,444.00

    24 month lease
    Residual for 15k is 65%
    Money Factor is 0.00355
    With $1000 down
    Monthly payment is $429+tax for 24 months

    I personally think this is high, although i punched in the numbers using a lease calculator and the monthly payment seemed pretty accurate. At this price, I almost would rather purchase the vehicle. I think some people who purchased their Foresters even have a payment less than this. I just need feedback on where I could still bargain and what else I can ask for. Thanks a lot.
  • ateixeiraateixeira Posts: 72,587
    Can you stretch to a 3 year lease? Residuals don't go down much, but the payment will.
  • Hi thanks for your reply. I am not really interested in a 36 month lease as I plan on purchasing a vehicle in approximately two years. Just need to graduate from my Master's program in two years then I'm ready to purchase.

    No luck in getting Cerritos Subaru to make a more decent offer. :(
  • ateixeiraateixeira Posts: 72,587
    Take that extra year to save up. You gotta work first, then earn, then buy the new car! :D

    Just kidding, do what you want.
  • You have a very good point. I will sleep on it! =)

    Thanks for all your help!

    Car man,
    Could you please post current MF and RV for 12k/15k Subaru Forester 2.5X for 24mo and 26 mo? thanks!
  • Hi All,
    Can someone proived (car man, hint hint) with the money factor and deprec.% on an '10 Forester XT Limited with Navigation?

    The MSRP including destination is $30,990. I figure I can get him/her down to $29,500.

    Also, has anyone noticed little differenc between the middle cars and luxury cars in lease price lately?? I went to Honda and they quoted me $570 a month for the Pilot EXL with Navi. For another $60 a month I'll get a Mercedes. No thanks.
    I remember when there was a much wider gape in $$ between Hondas/Nissans/Toyotas and Lexus/Accura/Merc etc etc.
    Just throwing it out for conversation.

    Thanks Much,
    CJ
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dataport. Subaru does offer support on 4 year leases of most models, but its 48 month money factors are not quite as attractive as its 36 or 39 month factors are.

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This discussion has been closed.