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2013 and earlier-Subaru Legacy Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited January 28 in Subaru
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Subaru Legacy. Thanks.

Car_man
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  • What are the lease offers? Are they leasing all styles? Where can I find all of this information?
  • Hi banderon. Subaru is leasing all Legacy models through its captive finance company right now. If you let me know exactly what model you are interested in as well as how long you want to lease it for and how many miles per year you need to be able to drive it, I can give you an idea of what its current lease program is like. To take things a step further, if you provide me with the full MSRP (with the destination charge added in) and an approximate selling price for the vehicle that you want as well I can calculate a lease payment on it for you using Subaru's actual lease program.

    Car_man
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  • Car_man and others, sorry to barge in on the thread -- but I have some leasing questions as well.

    What should I be looking at for leasing in the Denver area for a 2006 Legacy GT Ltd that has an MSRP of $29,694 (including $625 destination) and an invoice (according to Edmunds) of $27,310? Looking at 36 or maybe 48 month lease. Tend to drive about 12k miles a year, so I'm on the fence for 12k/15k. Can you get a 13k or 14k/year lease?

    Thanks!

    -Harrigan
  • Welcome Harrigan. You're not barging in at all, that's what this discussion is here for :) . I am not personally all that familiar with what the market is like for the Subaru Legacy in your neck of the woods, but for the sake of estimating a lease payment on the vehicle that you are interested in let's assume that you were able to get it for $750 over dealer invoice. According to my calculations, if you were to lease a 2006 Legacy GT Ltd that has an MSRP of $29,694 and a selling price of $28,060 through Subaru's captive finance company right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $451. The payment for an otherwise identical 48 month lease should be $396. Naturally is you are able to negotiate a lower selling price this car's payment would drop a little bit and vice versa. I don't think that Subaru Auto Finance has any sort of middle ground as far as mileage allowances go, I've only seen them offer 12,000 or 15,000 miles per year.

    Car_man
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  • cagormcagorm Posts: 34
    Hi Car_man. What is the residual and money factor on an 06 Legacy GT for a 3 year / 36k lease?

    Thanks.
  • cagormcagorm Posts: 34
    Will you also please post the numbers for an 05 Legacy GT LTD for 3 yrs/36k miles?

    Thanks.
  • red927red927 Posts: 118
    Car_man:

    You helped me out a few years ago with a GMC Envoy. I am looking at an 06 Legacy Limited with a MSRP of $26,232 and a selling price of $24,152. Could you please tell me the money factor and residual for a 36 month lease with 12,000 miles a year? Also what would the rates be for a 48 month lease?

    Thanks,

    Phil
  • Hi cagorm. If you were to lease a 2006 Subaru Legacy GT Limited Sedan through its captive finance company right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00230 and 52%, respectively. The numbers for an otherwise identical lease of the 2005 version of this car should currently be .00110 and 47%, respectively.

    When negotiating your lease on either of these cars, keep in mind that Subaru is currently providing $500 lease cash on both of them. This cash will help you to negotiate an attractive capitalized cost for your lease.

    Car_man
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  • Welcome back Phil. Here's the information that you are looking for. If you were to lease a 2006 Subaru Legacy Limited Sedan through Subaru's captive finance company right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00210 and 52%, respectively. The numbers for an otherwise identical 48 month lease should be .00120 and 43%. Since you mentioned this car's prices in your post, I might as well estimate what its lease payment should be like for you. Using the above information, an MSRP of $26,232, and a selling price of $24,152, I estimate that this car will have a zero down, pre-tax 3 year payment of around $372 and a 4 year payment of around $401.

    Car_man
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  • red927red927 Posts: 118
    Car_man:

    Thanks for responding so quickly. I noticed in post #9 you refered to $500 lease cash being available. Would that also apply to my situation and when does that expire?

    Also, the figures I gave you in my original inquiry also included $1500 down. How would that impact my payments?

    Thanks in advance,

    Phil
  • rws0131rws0131 Posts: 27
    Carman: Is the residual the same (52% / 43%) if I were to do the balloon style financing? If so, do you know the APR for 36 and 48 months as well? I do not prefer the lease, I prefer the balloon financing because I have a trade and can save on tax money! Is this thru Subaru as well? Thanks!
  • You're welcome Phil. Through November 30th, Subaru is providing $500 lease cash on the 2006 Subaru Legacy 2.5i sedan, 2.5i sedan Special Edition, and 2.5 GT Ltd. sedan only.

    As far as the $1,500 down payment that you mentioned goes, I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Legacy would be exactly the same, regardless of whether you had put $1,500 down, or had made absolutely no down payment at all. I can still work up a lease payment with this down payment for you if you would like, but as you can see making capitalized cost reduction on leases really is not a good idea.

    Car_man
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  • Hi rws0131. I do not personally keep tabs on the details of manufacturers' balloon note programs. Most likely, the residual values for balloon notes of and leases of Subaru models are the same, but I am not 100% positive that is the case.

    Car_man
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  • red927red927 Posts: 118
    Thanks Car_man:

    The downpayment is not cash but "Subaru Bucks" which I get from the Subaru Credit Card.. I just use it as a way to pay most of the fees (acquisition, registration, etc.) that are added after coming up with the actual selling price of the car. I have no intention of purchasing the car after the lease expires.

    Have there been any changes to the money factor and residual since October?

    Phil
  • No problem, Phil. Oh, well if your down payment is Subaru Bucks that you have earned from your credit card, that is a whole different story. It must be a cool feeling to pay for part of a car with free money like that. I believe that Subaru's lease program for every model except for the 2006 Tribeca is basically the same in November as it was last month. If you let me know the exact model that you want, along with how long you want to lease it for, and how many miles per year you need to be able to drive it I can give you the details of its lease program just to make sure.

    Car_man
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  • red927red927 Posts: 118
    Car_man:

    Since I last posted, I got prices a 36 month/36,000 mile lease. The money factor you gave was the same, but the residual was 1% higher. I saw the sheet from Subaru (Chase) credit which verified it. I was going to get a Legacy Limited but, at the last minute, switched to an Outback LL Bean sedan. I will pick-up the car on 11/26.

    My experience with one dealer is on the prices paid discussion. :mad: It was an unbelievably bad experience.

    Thanks for all your help.

    Phil :)
  • You're very welcome Phil.

    Car_man
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  • rws0131rws0131 Posts: 27
    Does anyone know the current residuals and money factors for the 2.5 i Special Edition for January? 24 month/12k and 36 month/12k.

    Thanks!!!!
  • Hello rws0131. Here's the info that you're looking for. If you were to lease a 2006 Subaru Legacy 2.5i SE Sedan through its captive finance company right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 59%, respectively. The numbers for an otherwise identical 36 month lease of this model should be .00210 and 49%.

    Car_man
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  • Car_Man;
    Can you give me the current residual's and MF for 2006 Legacy 2.5i SE & Limited for 24 & 36 month with minimum 15000 miles through Subaru. 20000 miles would be better if they publish it. If they don't can you tell me how much it would be to buy additional miles at lease inception.
    Thanks
  • nbvailnbvail Posts: 2
    Has anyone leased a new spec.b? If so how much a month?
  • Car_man,

    I would really like the following lease numbers for the Legacy GT Limted Sedan: the LMF and Residual % for 24 months, 12,000 per year, and for 36 months, 12,000 per year (MSRP of $30,195 and selling price of $28,000). Is there some other lease term that has more compelling terms than either of these?
  • Hi Car_man,

    When you have a chance, please see post #24. I could really use the numbers for the Legacy as I'm trying to figure out whether to buy or lease it. I've found a dealer willing to sell at $25,600 now (still $30,195 selling price). Thanks!

    Ben
  • Here you go, belvette. If you were to lease a 2006 Subaru Legacy 2.5i Special Edition Sedan through its captive finance company right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00250 and 58%, respectively. The numbers for an otherwise identical 36 month lease of this car should be .00210 and 48%. If you were to lease an '06 Legacy 2.5i Limited Sedan for 24 or 36 months with 15,000 miles per year, its numbers should be .00240 / 61% and .00190 / 50%, respectively. 15,000 miles per year is the highest mileage allowance that Subaru Auto Finance publishes residual values for. I am not sure how much it charges per additional mile, but your dealer should be able to tell you.

    Car_man
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  • Hi benji123. Here is the info that you're looking for. If you were to lease a 2006 Subaru Legacy GT Limited Sedan through Subaru Auto Finance right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00240 and 60%, respectively. The numbers for an otherwise identical 36 month lease should be .00200 and 50%. Subaru's most attractive money factor for this model is for 48 month leases. Its 48 mo., 12k numbers are .00175 and 41%. That's an awful long time to lease a vehicle for and the residual value is a little low though.

    Car_man
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  • Hi Car_man,

    Can you help me with the current money factors and residuals for a 2006 Legacy GT Limited Wagon? I'm interested in 24/36 month terms at 12K miles/year.

    I'm in Alabama.

    Thanks!
  • harriganharrigan Posts: 13
    Thankless job here, Car_Man, so thanks a bunch for helping all of us out. I too, of course, am looking for some info on what the current residual and money factor should be on an 06 Legacy GT.

    One Colorado dealer has quoted me the following...

    For 36 month / 12k miles--
    Residual: 50%
    MF: .002
    Monthly Payment: $455
    Due at Signing: $537.50

    For 36 month / 15k miles:
    Residual: 49%
    MF: .002
    Monthly Payment: $463.34
    Due at Signing: $545.84

    For 48 month / 12k miles:
    Residual: 42%
    MF: .00175
    Monthly Payment: $407.37
    Due at Signing: $489.87

    For 48 month / 15k miles:
    Residual: 40%
    MF: .00175
    Monthly Payment: $419.65
    Due at Signing: $502.15

    Have to admit I'm a little leary of a 48 month lease with the warranty being 3/36...
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, worcester1. If you were to lease a 2006 Subaru Legacy GT Limited Wagon through Subaru Auto Finance right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00210 and 59%, respectively. The numbers for an otherwise identical 36 month lease should be .00190 and 50%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, harrigan. Thanks for the thanks :shades: . If you were to lease a 2006 Subaru Legacy GT Limited Sedan through Subaru Auto Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00200 and 49%, respectively. The 12k residual for this term would increase to 50%. The numbers for a 48 month / 15k lease of this car should be .00175 40$, with the 12k residual increasing to 42%. As you can see, these numbers match up exactly with the ones that you were quoted, which is always a good thing.

    You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to work up some sample lease payments on the car that you are interested in for you if you let me know what these numbers are.

    Car_man
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  • Ok.. here is what I'm looking at.. probably 500 under invoice. Purchase price of 27,356. I am curious first if the 1,500 incentive is still appliable for leases.

    I am looking for a few options on the leases.. all with 15k in miles.

    I know they have very aggresive terms on one particular program (often 39mo). I just want to have 36 and 39 months figured. One with first payment due up front. One with 2,500 down up front.

    What would the payments look like on this? And again, I want to know if those rebates count on leases.

    THANKS!
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