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2013 and earlier-Subaru Outback Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi boblenon. The lease program that you were quoted for the Outback that you are interested in looks about right to me. However, I suspect that you will be able to negotiate a more attractive selling price on this car by shopping around. Subaru is currently providing $1,000 to $1,500 lease cash on the Outback right now plus there is around a $1,500 spread between the Outback's full MSRP and its dealer invoice price. Try stopping by the following discussion to see how much other community members have paid for similar models recently: "Subaru Outback: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • Hi Car Man!
    Nice forum you have here.
    I have a 2005 Subaru Outback LL Bean 36-month lease, $418.22/mo. 12K miles/year allowance, currently only 23K miles on it. I have 6 months left on the contract. I have just purchased a 2005 Subaru Baja and no longer need the Outback. Can I turn in the car early? Even if I could, I imagine I would pay a penalty. I hope I don't have pay the remaining $2500 I would owe if I kept it until the end.
    Thank you in advance.
    - Art
  • subearusubearu Posts: 3,613
    You likely can just pay the remaining 6 months of payments plus any early termination fee, less the security deposit. Or, maybe try a CarMax and see if they'll purchase it - as long as their price is equal to or higher than the buyout, unless you're ok with some cash out of your pocket.

    -Brian
  • manga13manga13 Posts: 3
    I am considering a Subaru Outback 2.5i LLBean Edition. The TMV for my area is 26,497. Do you know what figures I should use for the Residual amount and the MF? thanks.
  • You said: "You likely can just pay the remaining 6 months of payments plus any early termination fee, less the security deposit."

    But this doesn't make good sense. That would cost more than if I waited until the end of the lease.

    - Art
  • subearusubearu Posts: 3,613
    I didn't say it made good sense either :P but, it is what he was asking and likely may be the easiest solution. He's already in another vehicle and has payments left on the other. Getting out of a lease costs $, 6 months or not.

    If the vehicle had more time left on the lease, he might be able to find someone to take over the lease. But, 6 months or less is probably a hard one to convince someone to take over. That's why I suggested finding someone to purchase and buyout the lease.

    -Brian
  • Art,

    Did you end up keeping the 2005?

    -B
  • xwesxxwesx Fairbanks, AlaskaPosts: 8,460
    Depending on the cost of insuring it for those 6 months, it could work out better than retaining it for that time as well.
  • jad376jad376 Posts: 12
    Ciao. This is my first time posting, and I know it's in the wrong forum. I just thought I'd get more traffic here. Thanks for understanding.

    I'm looking at a leftover '07 Legacy Limited wagon, Diamond Grey w/black leather interior.

    From the dealer:
    52% residual
    .0023 money factor
    based on "$300 under invoice": $24,379.

    Lease calculator based on 6% sales tax and 39 months: $354, that's adding $1000 Subaru cash incentive. However, because the dealer quoted me under invoice already, should I forget about this $1000?

    It still seems a little high to me. Is this a good deal?

    J.
  • jad376jad376 Posts: 12
    The dealer came back with other numbers on the Limited.

    $0 down, 15,000 miles/year, 39 months: $369, T,T&L folded into monthly payment.

    T,T&L= about $1100. If I put that down, for the same lease on the same vehicle, he quoted me $339. This sounds like the right deal.

    Now...I found another dealer much closer to my home with a silver Special Edition. No 6-CD, no auto climate control, but they're quoting me a price to put the full leather interior in and do a lease:

    with $525 down:

    $358, month, 42 months.

    At that same dealer, on "a" Limited wagon, they're quoting:

    $385/month, 48 months, $0 down. This is with an "acquisition fee" folded into the monthly.

    Personally, I'd prefer the first vehicle; I'd have to go farther to get it, but I don't really want to get into this car for a year past its factory warranty.

    Is this a good deal? I'm shopping it against the Hyundai Santa Fe, Honda CR-V, or a deeply deeply discounted Nissan Murano. The Subaru beats them all on gas mileage, and has similar usable space in the back. The handling on the hunkered-down Legacy is good for a wagon, in my opinion.

    Thanks for your help,

    J.
  • ateixeiraateixeira Posts: 72,587
    I'd go with the $339 deal. You want to put something down so you don't end up upside down and need gap insurance.
  • jad376jad376 Posts: 12
    Thanks for the advice, but the dealer didn't say anything about gap insurance. What would it be for this kind of lease (car's selling price = $24,379 so far, I want to get it down to in the $23s, but original MSRP was almost $27,000).

    However, rather than taking the selling price down any, my only other idea at the moment is either using my good credit score to get a better money factor (.00235 is what they were offering, more accurately)...or I was thinking of getting them to install Outback roof rails if I took the $339 deal.

    Still, though, it seems a bit much...I'm suspicious at a car dealer who is actually willing to be forward with me. There is something I've got to be missing.
  • bobbyjones,
    Yes, I ended up keeping the 05 Outback. I figured I might as well wear it out for the next 6 months instead of my purchased Baja.
    - Art
  • Art,

    I'm asking because I'm looking to buy. I'm days away from leasing / buying new but would love to try and get into something like yours if the residual was right!

    -B
  • Bobby,
    The residual is about $18500 or so when I turn it in at the end of the year. I don't remember the exact price. I checked into lease transfers but it appears that Subaru does not allow that. A friend of mine is considering buying it at the end of my lease. I think it's worth it.
    - Art
  • Rats!

    Well, good luck with it then.

    -B
  • jad376jad376 Posts: 12
    The dealer replied via email that "gap insurance is included". Do I absolutely need this? Which situation would I not need gap insurance? What hidden costs would be in the lease that I can try to eliminate in addition to getting the selling price down further below what he's offering?

    Again, the offer from the dealer:

    '07 Subaru Legacy Limited (last one left): MSRP: 26,140
    "$300 under invoice" price offered: $24,379

    $339/month, $1100 down, 15k/year, 39 months

    $369/month with $0 down

    Res: 52%, MF: .00235

    I believe the MF could be slightly lower. What do you think?

    Thanks all!
  • dino001dino001 Tampa, FLPosts: 3,500
    Most leases these days include GAP protection w/o optout option. And to be honest, GAP is what you absolutely DO NEED when leasing with no/little down (which is the way to go in a lease). It protects you from bank demanding money in case of a total.

    I would never buy GAP for a loan, but I would never lease (I mean "normal" lease, not one of those exotic put 10 grand down or so) without GAP.

    2012 BMW 328i wagon, manual and sports package. No. sold in the US: 1. Probably.

  • jad376jad376 Posts: 12
    OK, thanks for all your advices. The dealer just came back with $22,238 - $3,902 off the MSRP. Lease payment of $369/month folding all taxes and fees into the monthly payment with absolutely nothing down! Anything else I should know whatsoever? I'm going to get the car tomorrow.
  • jad376jad376 Posts: 12
    I just plugged in the numbers to a lease calculator just to be sure - if this one is based on 12,000 miles a year, it's just a few dollars more than right-on-target. If the lease calculator is based on 10,000, I guess I've got a good deal on my hands.

    MSRP: $26140.

    Negotiated lease price: $22238 ($1000 lease cash included)

    Tax, title, license, fees, etc.: $1100

    Cap: $23,338

    52% residual: $13,593

    Money Factor: .00235

    39 months

    6% PA sales tax

    $356.86 per month. If this is based on 12,000 miles per year (1000 miles per month), and the 250 extra miles needed to bring it up to 15,000 would be 0.15 per mile - that would, in theory, bring it up to $394 and change...so it looks like a pretty good deal after all.

    I sent out some dealer inquiries to Volvo dealers about the V50, too - they come close ($431 for a $37,000 car?), but I'd rather save $3,588 in lease costs. Ciao!

    J.
  • Don't forget to see if the cap includes inception fee ($595-$695) and the dealers "documentation" fee ($200-300).

    -B
  • kyfdxkyfdx Posts: 28,598
    Also.. PA tax on leases is 9%..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • jad376jad376 Posts: 12
    Saturday morning, I took delivery of my brand-new '07 Leggy, Diamond Grey Metallic w/black leather. $339/month, 39 months, 15k/year. That's it. Thanks to you all - I couldn't have done it without reading this forum all this year!

    Although my car is a bit hard to get used to after seven years of PT Cruisers, the Leggy is winning me over slowly. It's much, much quieter than our Audi. I plan to get a Tornado for the naturally aspirated four-banger (although I did average 27 mpg on the way from Morristown, NJ to Bethlehem PA, not bad for day one), and next up will be a portable, dockable aftermarket nav system. I'm thinking of rigging a removable holder in the space between the air vents - you Subaru owners sure like to write about your cars on the discussion forums, so I won't have a problem finding advice in that area. Next up will probably be a bike rack for the low-profile roof rails. Again, thanks a ton and eventually come and Google over to the other Legacy forums (probably in the "Diamond Grey Thread"?) for pictures.

    Ciao!
  • worldly1worldly1 Posts: 3
    Hi....I am talking with a dealer about leasing a 2008 Outback Limited.
    This is what he proposed.....MSRP $28,690 My price $26,085
    42 Mo & 10K per year
    $700 Trade in on my current Subaru
    $2,000 out of pocket with a payment of $318 per Mo plus tax.

    I appreciate your input...Thanks
  • worldly1worldly1 Posts: 3
    Hi....Re: the Outback mentioned above....I forgot to mention the residual of $16,067 after 42 Mo
  • xwesxxwesx Fairbanks, AlaskaPosts: 8,460
    $700 trade in? What Subaru do you have?! :sick:
  • worldly1worldly1 Posts: 3
    2003 Forrester xs
    26,000 miles ....automatic.....sunroof
    Like new & with 4 new tires
    My residual is $13,300 & they said they would give $14,000
  • texmextexmex Posts: 4
    I just leased an '08 Outback 2.5i(not basic) here in NJ.
    MSRP: $25570, agreed on $22500.
    Put down: $1000(included first mths paymt and registration fee)
    Mthly payments $320.
    $$ factor:.002600(?)
    42 mths
    Comments? What do you think Carman? Did I get screwed or is it a fair deal? I've leased many cars and this is my first from Subaru; I've come to realize this: Dealerships get their $$ in the end. It's just a fact.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on getting your new Outback, jad376. Don't forget to stop by the new Edmunds.com Dealer Ratings & Reviews section to share your thoughts on your experience with everyone. Enjoy your new ride!

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi worldly1. The car that you described has a spread of around $1,900 between its full MSRP and its dealer invoice price. Plus Subaru is providing a $1,000 cash incentive on leases of it. This gives you a total of $2,900 to play with. The $2,600 discount that you are being given looks very attractive to me. Just make sure that the dealer you are working with uses Subaru Finance's current buy rate lease money factor of .00260 to calculate your lease payment and you're in business.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.