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2013 and earlier-Subaru Legacy Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    It's not a waste at all, gluz. I'm happy to help. If you were to lease a 2006 Subaru Legacy Limited GT Wagon 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 .00200 and 49%, respectively. When negotiating your lease on this car, keep in mind that Subaru is providing its dealers with up to $1,000 dealer cash on '06 Legacy models this month. The exact amount that dealers receive depends upon how many units they sell.

    Car_man
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  • ari37ari37 Posts: 1
    Hi Car_man,

    Do you know if Subaru or Subaru of New England prohibit leasing of any used car (even 2006 "executive" or "loaner" models sold at a discount)?

    I was able to get a quote on a 2006 "executive" Subaru Legacy GT sedan (automatic) for $25,895 from a Subaru of New England dealer in NH. They told me they could lease it to me for $383 per month with 0 down for 4 years and 15,000 miles per year (or $424 per month for 3 years). (Is that a good deal, by the way?)

    However, I found similar cars at a few other dealers, which they would not lease to me. For example, Patrick Subaru in MA told me that they could not lease me either of their two used 2006 Legacy GT's that they have in stock (both of which they list at about $26,000 and one of which is listed as never having been registered) because Subaru of New England does not allow leasing on used cars, even 2006 models. Are they BS-ing me?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi ari37. You probably would be able to use Subaru's new vehicle lease program to lease a demo vehicle. However, you would not be able to use it to lease a vehicle that has already been titled. I am not sure if Subaru has a lease program for used vehicles. If it does, I have never personally seen it.

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  • Hi Car_man!

    Wondering what the current buy rate is on a 2007 Legacy 2.5 sedan (non-turbo). Planning on 24 or 36 mos, with a minimal amount down. Also, do you know what kind of incentives SoA is giving on these right now?? Thanks for your help!!!
  • Hi majdomo. Here's the information that you're looking for. Subaru Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 Subaru Legacy 2.5 Sedan with 15,000 miles per year are .00390 and 64%, respectively. Its 36 month numbers are much more reasonable at .00290 and 51%. Subaru is not currently providing any cash incentives on leases of this car.

    Car_man
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  • Hi Carman, I'm interested in purchasing a 2007 Subaru Sedan 2.5 GT Limited. The MSRP is $31,438 & invoice is $28,834. I'm also planning on leasing for 48 months. Can you please tell me what my monthly payments would be as well as the money factor & residual?

    Thanks,
    Uconn
  • Hi Uconn. Subaru Auto Finance's current buy rate lease money factor and residual value for a 48 month lease of a 2007 Subaru Legacy 2.5 GT Limited Sedan with 12,000 miles per year are .00240 and 50%, respectively. Your lease payment for this vehicle will depend upon what sort of selling price you are able to negotiate on it. Given the fact that Subaru is providing $750 lease cash on it this month, let's say that you were able to lease one right at dealer invoice. According to my calculations, if you were to lease a 2007 Subaru Legacy 2.5 GT Limited Sedan with an MSRP of $31,438 and a selling price of $28,834 through Subaru Auto Finance right now for 48 month with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $381.

    Car_man
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  • subearusubearu Posts: 3,613
    What about a 48 month, 12k miles per year for the similarly equipped GT sedan, zero down? One caveat is I'm eligible for the IMBA VIP discount which starts pricing at invoice, so I believe I'd then take the $750 off that. Sales tax is 5.5% as well.

    -Brian
  • Hi Car Man,
    I am looking to lease a 2007 Subaru Legacy GT limited for 24 months with zero out of pocket. Do you know what the money factor and residual are? Thanks
  • Hi Car Man. I have found a on a Subaru Legacy Ltd.listed at Edmunds under incentives. The one I am looking at is for 24 mos. 2k down, 10k per year. The MSRP with a few small accessories is: $25,091. Can you tell me: the MF, the residual, and if this is a good offer? I will add miles up to 15k but I dont mind paying for those up front. Also, is there any lease cash or manufacturer to dealer incentives on this car for leasing? Thanks so much, looking4lease
  • Hey Brian. Subaru's current buy rate lease money factor and residual value for a 48 month lease of a 2007 Legacy GT Sedan with 12,000 miles per year are .00230 and 54%, respectively. I would be happy to use this program to estimate what your lease payment should be like on this car. In order for me to so I just need you to provide me with its MSRP and VIP selling price.

    Car_man
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  • subearusubearu Posts: 3,613
    MSRP: $31,111
    Invoice: $28,791

    VIP pricing is invoice minus any incentives/discounts (looks like $750 customer cash is available).

    I too am ahead on my '04 Forester XT: the lease payoff is lower than the "average" trade-in figures. Selling a leased car at home isn't usually ideal, will have to see if CarMax has any interest in it if the Subie dealer doesn't.

    thanks,
    -Brian
  • I sure do, ursrob. Subaru's current buy rate lease money factor and residual value for a 24 month lease of a 2007 Legacy GT Limited Sedan with 15,000 miles per year are .00270 and 65%, respectively. With this lease you would have to pay your vehicle's first month's payment, a security deposit equivalent to that payment rounded up the the nearest $25 or $50 increment, Subaru's $595 acquisition fee, and any requited state taxes or fees at signing.

    Car_man
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  • Greetings looking4lease. Subaru's current buy rate lease money factor and residual value for a 2007 Legacy Limited Sedan with 10,000 miles per year are .00270 and 72%, respectively. The residual value for an otherwise identical lease with 15,000 miles per year is 2% lower.

    I see that you are considering making a $2,000 down payment on your lease. I always advise consumers not to make down payments when leasing. I do so because if their leased vehicle is totaled in an accident or stolen and never recovered, their down payment essentially disappears. Consumers can and should lease any vehicle that they want without making any sort of capitalized cost reduction. All you will have to pay at lease signing are your vehicle's first month's payment, security deposit, $595 acquisition fee, and any required state taxes or fees at signing.

    I would be happy to give you my opinion of the deal that you are getting, but you never mentioned this car's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without knowing what the selling price is, it's difficult to say how good a deal this is. Subaru is currently providing $750 customer cash on this model, but I do not believe that this cash is compatible with its lease program.

    Car_man
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  • Thanks for the additional information, Brian. Subaru is providing $750 customer cash on the 2007 Legacy right now, but I do not believe that this cash is compatible with its special lease program. So I guess that for the purpose of a lease through the VIP program, this vehicle's capitalized cost would be dealer invoice. According to my calculations, if you were to lease a 2007 Legacy GT Sedan with an MSRP of $31,111 and a selling price of $28,791 through Subaru's captive finance company for 48 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $355.

    Car_man
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  • Car_man

    Can you help with some lease numbers for me as this is my first lease:

    2007 Legacy 2.5i Special Edition Sedan Manual
    Selling price 17,999 + options of $927 = selling price 18926. MSRP of the vehicle is 22094 (incl. options & delivery)

    I'm looking at a 39 month 15K lease using the Subaru captive finance company / Sign & Drive promotion. I think the residual is 52% and MF is .00230, but can you double check those for me?

    This lease is for PA which has a 6% sales tax and a 3% lease tax.

    Using an excel lease calculator, I get the following numbers using the following assumptions:
    Acquisition fee: 595
    Tax 9% (6% + 3%)

    Subaru Lease cash (which IS compatible with special lease promotion: (- 750)
    Dealer CAP reduction under Subaru Sign & Drive Lease: (- 1057)

    Total depreciation 7928.46
    Monthly Depreciation 203.29
    Monthly Finance fee 71.08
    Monthly payment 274.38

    The dealership claims that they are using the same MF and residual, but are coming up with a payment of 287 per month. I realize that it's not a lot of difference, but I'm trying to figure out where the difference comes from.

    Also, how is end of lease buy-out pricing obtained? Is it the cap cost / sale price minus the total depreciation (in this case 18926 - 7928 = 10998)?

    Thanks for your help!
  • Dealer in New England gave me these price quotes:

    2007 Legacy gt ltd sedan. , with spoiler--xm radio--subwoofer;

    24mos 15k/year.$551.95 monthly(including tax and fees)
    $1557.89 out of pocket

    36mos. 15k/year. $495.80 monthly(including tax and fees
    $1501.74 out of pocket

    This for MSRP of $31,449 and Invoice of $29,101

    These numbers seem to be way out of whack with what Edmunds lists as current Subaru deals. Or am I missing something??
  • HI
    My 2003 special edition is off lease on the 21st. I'm looking into getting another Legacy but can't decide if the extra cost of the GT with the premium fuel, extra insurance, is worth it. I'll probably stay with the special edition.
    Two questions: is it worth trying to find an 06 GT and see if I can get it at a bigger discount than the 07? Does the fact that it's already a year old effect the price since it's already depreciated?
    (ok three questions...) I see that many people say that they want to lease with no money down or even that it's not good to put money down...is that the best way? I had to put down about 3 grand for the last one. I see though that there is a special program on now for new cars, and wonder if I can get a good deal on one since I also get the loyalty 1% discount. The only problem is that I'm 20,000km over on my mileage which is about 2 grand I'll have to pay unless I can get them to absorb it. What is the best way to proceed. I have to do this soon.
    thanks,
    cdndriver. Oh, I live in Toronto, Canada
  • Welcome aparamedic. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Let's take a look at this deal. You were quoted a discount of $3,168 on a 2007 Subaru Legacy 2.5i Special Edition Sedan. This vehicle only has a spread of a little over $1,200 between its full MSRP and dealer invoice price. Add to that the $750 lease cash that is currently available on this model and we come up with a total of around $2,000 to play with. As you can see, the selling price that you were quoted for this vehicle is excellent. The money factor and residual value that you were quoted for this car are right on the money as well. If you like it, I personally don't see any reason not to pull the trigger on this deal.

    Vehicles' residual values are base upon a percentage of their full MSRPs including the destination charge and the MSRPs of any options that can be residualized.

    Car_man
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  • Car_man, can I get some help with a 2007 Legacy GT with 30,303 MSRP and 26266 selling price for a 36 month lease and 12K miles/year. I am looking for MF and residual value to figure out lease payments. Thanks
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