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2013 and earlier-Subaru Outback Lease Questions

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  • Welcome ryan. Here's the information that you're looking for. Subaru's current lease money factor and residual value for a 36 month lease of a 2010 Outback 2.5 Limited with 12,000 miles per year are .00140 and 52%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Looking to lease a 2010 Subaru Outback in NY (Westchester or Rockland area), but will travel up to 50/75 miles to find. Any one have good experience and can get me some prices on the 2.5i or premium. Also need money factor and residual for 12K and 15K per year. Thanks.
  • 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?
  • 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.
  • tonbobtonbob Posts: 5
    Here is dealer quote for 2010 Outback 2.5 Premium:
    Lease Quote:
    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?
  • stoopystoopy Posts: 105
    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.
  • @ 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!
    :shades:
  • ateixeiraateixeira Posts: 72,587
    You just misquoted me BIG TIME. And I'm the one who doesn't have a clue? :P

    It was nickr1 who said that:

    http://townhall-talk.edmunds.com/direct/view/.ef9ddb4/259#MSG259

    I've been trying to convince him that $200/month is way too low.
  • Sorry bro, don't get your panties in a bunch, didn't mean to ruin your day
  • ateixeiraateixeira Posts: 72,587
    Check out the smiley with the tongue sticking out...clearly you didn't. :shades:
  • 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. :)
  • ateixeiraateixeira Posts: 72,587
    No hard feelings, I basically reacted in a similar fashion, 200-what? :D

    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.
  • nickc3nickc3 Posts: 13
    Decent deal? Outback Premium w. All Weather Package.

    Over the phone quote, so didn't get all the details....

    Its DMV only; First Month payment waived...

    $369/Month

    36 Months, 10k Miles ($15 more for 12K)

    I had another dealer offer $415 for same terms, but he is looking to beat this...I hate this nonsense.....THhe $369 seems decent, but still a little high for my taste.
  • Theres no way to really tell. In order for you to really know if you are getting a great deal you need to know what the "selling price" is in relation to the invoice on the car. The payments will end up however the math works out based on residuals and the money factor.

    I got my OB for what they call "net net" meaning they "sold" me the car for invoice less hold-back, which is the true dealer net cost. So its all relative.

    The short answer? You need more detail, but $369 doesn't sound terrible
  • nickc3nickc3 Posts: 13
    They didn't share numbers, but I get the VIP program discuont which is supposedly Invoice - 2%. He said that works out to around 25K for the Premium + All Weather.
  • stoopystoopy Posts: 105
    With the high demand for Outbacks and relatively low supply and the fact that there are ZERO rebates, I find it hard to believe that ANY dealer would give you a selling price of invoice minus all hold back ("net net"). What would be in it for them? DId you trade a car that they shanked you on? Did you put down a heap of cash? Did they give you that price then add $750 in "dealer fees"? The cheapest I was offered by several HIGH volume dealers was $250 OVER invoice. That's about $1000 higher than you allegedly got. Do you work at the dealership? Is your dad the sales manager? This needs to be on the next episode of Mythbusters.

    Now I see in your post above you said:
    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.

    NOTE YOU SAID "PLUS ADDITIONAL MONEY DOWN" to get to $23,266. And you are wrong about the invoice price. A 2010 Outback PZEV Premium w/ All Weather Package MSRPs at $26,790 and carries an invoice price of $25,250. $24,714.20 would be the net net (invoice minus holdback). You can't count money down as part of your awesome deal. I could put $5,000 down on an Outback and come in here and tell everyone about my sweet $140 lease payment. Thanks for sharing.

    MYTH BUSTED.
  • Car Man,

    Can you post the current residual and MF rates for a '10 Outback Premium for 36 mo, 10K miles? It would be with CVT and AWP, if that matters. Many thanks!
  • Here's the info that you're looking for, scarman. Subaru's current money factor and residual value for a 36 month lease of a 2010 Outback 2.5i with 15,000 miles per year are .00140 and 53%, respectively.

    The numbers for a '10 Outback 2.5i Premium are .00140 and 53%.

    I haven't checked what Subaru's low-mileage adder is for residual values in a while, but the last time that I looked it was 1% for 12k leases.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Here you go, wibadger71. Subaru's current lease money factor and residual value for a 36 month lease of a 2010 Outback Premium with 10,000 miles per year are .00140 and 55%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Wow, you sure are smart. Lets get something straight - THAT MYTH IS CONFIRMED SUCKA! So if you want to call me a liar, well then read on. Seems like you are either jealous or you have no idea what you are talking about. Probably both. But you figured me right out. Let me just say that everything I said in my post is 100% true. I buy all my cars for net net and I'll tell you how. You need (1) a high volume dealer, no mom & pop shops (2) You need to negotiate either by phone or email (do not go to the showroom) (3) negotiate the deal on the very last day or weekend of the month. And lastly, you need to know each and every aspect of the deal or else you'll end up paying something stupid like "over invoice". I"ll bet you my brand new Outback that I got this car for net net ($700 below invoice). If you win, you can have my car & I'll make the payments, If I win vice versa. Lets see how smart you are now?

    I used to be in the business. I know how this stuff works, but thanks for your misinformed education. I'll try to answer each of your sarcastic questions.

    What would be in it for them? Easy VOLUME. They move the unit off the lot which means they don't pay interest or any other costs associated with carrying inventory. If you sell 100 cars in a month and you make profit on 80 of them and you break even on 15 and maybe take a loss on 5 you are still profitable but you have reduced a huge amount of costs, and lastly big dealers usually are incentivised on many other levels - one of which is a volume bonus....next

    DId you trade a car that they shanked you on? NO, They tried though, I shanked them. I got them to ACV the car at wholesale market value ($3500), but they tried like hell to give 1500 less than that and it didn't work.

    Did you put down a heap of cash? No cash, $0 dollars - NO MONEY OUT OF POCKET, JUST THE TRADE

    Did they give you that price then add $750 in "dealer fees"? NO, where do you come up with this stuff?

    The cheapest I was offered by several HIGH volume dealers was $250 OVER invoice I know this isn't a question but it begs the comment "you suck at negotiating" sorry. I emailed one other dealer and right off the get go they were $150 below invoice. Also I live in New England, these cars are as common as a Dunkin Donuts, there is one on every corner.

    Do you work at the dealership? Is your dad the sales manager? No & No. I left the car business as a sales manager in 2003. I don't buy cars from my "car" friends because I can get a better deal by being a hard-[non-permissible content removed] from people I don't know. My dad was in the hotel business what was yours? A [non-permissible content removed] negotiator? The apple doesn't fall far from the tree.

    YOU SAID "PLUS ADDITIONAL MONEY DOWN" to get to $23,266 You really are offended by my good deal huh? I traded a $3500 car, what do you not understand? There is equity there ok? You pay fees, 1st payment etc. I'm not saying my payment was the good deal, I was saying the price of $700 below invoice was the good deal and I was trying to show you how to calculate a lease on a calculator.

    So now that you may or may not understand things better, go back and read it again. Payment amount is no indication of a good deal based on your point of cash down, so don't go on my payment. For the first half of your post I actually thought you might know a thing or two, but when I read the rest - all bets were off. Oh and Invoice price can differ from region to region based on transportation fees and sometimes corporate advertising fees that get spread to the each invoice in that particular region but hey, I"m probably making this stuff up right? I'm mean I probably didn't READ THE INVOICE PRICE RIGHT OFF OF THE INVOICE HUH? No, why would I do that? Please man, send me some difficult questions would you?

    NO MYTH - I have all the paper work to back up my post - all you have is pent up angst and some sort of wired notion that someone like me would come in here and spend 20 minutes on a post full of lies? My post was simply a small contribution to this forum to help you guys understand all the aspects and really how cheap you can buy the car. So if you want o get all huffy puffy over that... go right ahead. ;)
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