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2013 and earlier-Subaru Outback Lease Questions

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Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings texmex. The vehicle that you described probably has a spread of around $1,550 between its full MSRP and its dealer invoice price. Plus Subaru is providing a $1,000 cash incentive on leases of it. That gives consumers who are in the market for it around $2,550 to play with. The $3,000 discount that you are being given looks outstanding to me. Furthermore, the money factor that was used to calculate your monthly payment is right in line with Subaru Finance's buy rate for this model. This looks like an outstanding deal to me. Congratulations. Make sure to stop by the new Edmunds.com Dealer Ratings & Reviews section to share your thoughts on this dealer with others. Enjoy your new ride :) .

    Car_man
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  • I'm considering leasing an '08 Outback 2.5i Limited and would like some opinions as to what a fair monthly payment would be with the following terms.

    MSRP $28,616
    36 months
    12k / year
    $0 Down payment

    Teir 1 credit
    Michigan dealership

    Nothing has been negotiated as of yet. Only inital salesperson contact and test drive complete. Competition should be a factor; similar vehicles exist in inventory at 3 local dealers.

    I've surmised from other postings that there is $1,000 incentive on the vehicle and quite a bit (approx. $1,900) of differential between Invoice and sticker. Money rates seem to hover around 0.0019 and residual of 58%. But I really don't know if any of this accurate, that's the reason for the post.

    Thanks for your consideration.
  • jpautojpauto Posts: 11
    Hi,

    This has been expensive to lease the last few months but is the car my wife and I really want. Hoping you can post the December numbers (cash, residual, money factor) once they are in. Looking at 36 or 39 months (whichever is better) and 12k miles per year.

    Thank you!
  • jpautojpauto Posts: 11
    please confirm the following:

    residual for 12k miles per year is .53 at 36 months, .51 at 39, and .50 at 42
    money factor for all is .00170

    And wondering if the cash is $750 or $1500? I read edmunds info as 2 different $750 incetives that can both be used on a lease and thus totaling $1500? Wasn't clear.

    Thanks, and please correct me if and where I am wrong...
  • I got the exact quote from Valley Subaru in Longmont Co. $32000 purchase price, with all the data you list above, =$469/month.

    I'm pretty sure the cash back is $750. You can see that on their website for their season event (I'm so tired of the "season/event" advertising, I could puke up a giant red bow on a Lexus). The XT is half that of the regular Outback with cash back.

    I'm curious what your purchase price has been quoted? Anyone else finding better deals--$32K seems okay but not great. Pretty disappointed in the buydown on this car, say compared to a Volvo XC--you can get that for a substantially less per month lease.
  • dino001dino001 Tampa, FLPosts: 3,486
    It's because Volvo subsidizes its lease by significantly overinflating the residuals and Subaru does not (or to be more exact - Subaru overinflates them to much lesser degree). If you got Volvo and happen to drive much more than the mileage or have some unfortunate wear and tear, you'll have to either take a heavy penalty, overpay for its purchase by some absurd amount. In Subaru's case you might break even or overpay to much lesser degree. So it all depends on one's situation: low payment today, high price/penalties tomorrow, higher payment today, easy walkout tomorrow. Suit yourself ;)

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

  • Hi dino,

    I guess I'm not understanding you very well: Both cars have penalties for overages on mileage, and I'm pretty sure they are the same (.20/mile). Are you saying Subaru doesn't penalize you for excessive wear and tear. I have to say I'm kind of doubting that Volvo is any "harsher" here.

    For example: My current XC lease is up. I have taken it into Wells Fargo Auto Finance's auction house in Denver (who, btw, does Subaru leases), to have them "evaluate" it. I had one unfortunate bang into my bumper that cracked it, but it was a $150 charge (the bumper repair quote was $580 when I took it to the dealer last year). The other thing they checked was tire tread. I was okay on that, so no charge. Then they looked for dings and large scratches beneath paint. I had none, but the guy told me they were **$15** a piece. That was it. My car was under mileage so I didn't get dinged for that, but it was the same as Subaru. It wasn't even clean when I brought it in, had a perforation in the side door leather from a ski, the guy saw it and didn't charge me.

    So, I personally think that Volvo is subsidizing the car, yes, but not hitting wear and tear any harder, unless Subaru has some kind of easy lease deal where you can beat the crap out of the car and not worry. I'd be surprised.

    I just want to add here: If I wanted a new XC, I'd get one, but I don't like the poor gas mileage on the new one so I'm now considering an Outback--so this wasn't a 'Volvo is better than Subaru" post. I think the Outback's a great wagon!

    Thanks!
  • Carman,
    Wondering if you could chime in on this lease for an 08 Outback XT/VDC/Automatic/Nav:

    Purchase Price: 32,000
    residual for 12k miles per year is .53
    money factor is .00170
    36 month lease= $469/month plus taxes
    Customer cash back: $750

    Thanks!
  • dino001dino001 Tampa, FLPosts: 3,486
    you saying Subaru doesn't penalize you for excessive wear and tear. I have to say I'm kind of doubting that Volvo is any "harsher" here.

    No, that' not what I'm saying at all. I have no idea about the inspection critera or "nickling and diming" practices of any of the companies.

    My point is that in case of having overmileage/excessive wear you can elect to purchase a vehicle rather than pay the penalties. However, in case of Outback, you'd be much closer to its market value, therefore if you decide to "flip it" rather than pay the penalty, you'd take much smaller loss than in case of Volvo, which residual is significantly more overinflated.

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

  • Thanks for the reply, dino, I apologize if I misunderstood.

    And on the front-loading of residual it's likely you've got more knowledge than I. I will say though, WellsFargo offered the car to me at a $4000 discount from the buyout, which put it about $5,000 under current retail market value and a couple grand less than trade-in value (using kbb and edmunds as a gauge) if I did buy it. I do know Outbacks tend to have higher value at the end of leases than most cars (I think BMW was the highest?).

    But if you just turn in the car and walk away rather than buy, being 'closer to market value' at the end of the lease is irrelevant, no? That's where Volvo is beating up on the Outback (in terms of the lease), especially given it's known as a luxury wagon where Outback isn't (and the MSRP--however overpriced--is nearly $10K more)

    The sad part is I don't want to own a Volvo past 50,000, even though it's been flaw-free till now. :) So I intend to turn it in. I'd likely do that with a Subaru as well. I simply lease because I cannot stand servicing a car.
  • dino001dino001 Tampa, FLPosts: 3,486
    But if you just turn in the car and walk away rather than buy, being 'closer to market value' at the end of the lease is irrelevant, no?

    I agree, it is completely irrelevant. The catch is your lease must be structured right on the money with the mileage and you have to be able to "defend" the car well over the course of the lease. If you do that, overinflated residual is only helpful. You bascially rent it for loess than your lessor is paying in depreciation.

    However, if you don't (defend the car or have the right mileage), the low payment will bite you right in the rear with no way around ;) . Just read some post of desperate people with 20K overmileage and having to pay 20K*0.2=4 grand in mileage fees or buy their used car for some exorbitant amount then you get an idea...

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

  • I just started the lease of an '08 Outback 2.5i Ltd LLBean with Nav for $368/mo, 0 down, 36mos, and 12000m/yr. Any idea if it's a good deal?
  • 2008 Outback 2.5i Limited, Black, Tint windows, AW Floor mats, lease for 384/36 mths, 15K a year, $16,450 residual-Good deal?

    NY state - Ulster County. 36/mnth, 15k miles, $16,450 residual, $384 a month.

    Looking to verify it's a good deal?
  • FYI re recent lease. I just leased a 2008 Outback 2.5XT with NAV. 15k miles per year--36 month lease--selling price of $31,550--$7k drive off with lease payments of $310 per month, including tax and license ($286 per month before tax and license)--52.8% residual on MSRP of $35,314. Money factor is .0015. I did the large down b/c I wanted the monthly cash flow to stay low--not recommended in most instances, but works nicely for me. Great car. Realistic residual amounts to slightly higher payment when compared to other comparably priced car I was considering--Infiniti G35--but the Outback offers great reliability and versatility. The Outback will be even more desirable when we get the diesel with 40-50 mpg.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on getting your new Outback, socalh2oskier. Thanks for taking the time to share the details of your lease with everyone. Don't forget to stop by the Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience as well. Enjoy your new ride :shades: .

    Car_man
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  • lbh2315lbh2315 Posts: 6
    2008 Outback Basic
    Auto
    Cargo Net
    Hatch Cover
    Armrest Extender
    Quartz Silver

    MSRP - $23,885
    Purchase Price = $20,600
    Cap Cost Reduction = $1,500
    36 mos
    12K/year
    MF = .00140
    Residual = 54%
    Payment of $238/mo. (includes tax)

    This was one of the first times I left a dealer thinking I actually got a really good deal. So now I look to the heavens and ask....did I really??!! I have three days to take it back, so if any of you could chime in and let me know it would be greatly appreciated. Thanks in advance.
  • kyfdxkyfdx Posts: 27,985
    Three days to take it back?

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • 1985mb1985mb Posts: 54
    Anyone getting/seeing good deals on Outbacks lately?
  • hdutyhduty Posts: 5
    Hi,

    Does anyone know the current residual values for 2008 vs 2009 outback. Are the residual percentages going to make a lease for a 2008 or 2009 more attactive?

    I'd like to know what they are for 2.5i, Limited and XT.

    Additionally, does anyone know the current money factors being offered?

    I should mention that I'm looking in Vermont.

    Thanks,
    HD
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here's the information that you're looking for, hduty. Subaru Finance's current buy rate lease money factor and residual value for a 2008 Subaru Outback Wagon 2.5i with 15,000 miles per year are .00100 and 52%, respectively. The numbers for an otherwise identical lease of an '08 Outback Wagon Limited are .00105 and 53%. The '08 Outback Wagon XT numbers are .00120 and 50%.

    On the 2009 model, the 2.5i numbers are .00220 / 57%, the Limited numbers are .00220 / 56%, and the XT numbers are .00220 and 50%.

    Car_man
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  • I was originally looking for a used 06 or 07 XT outback and the wife was wondering about leasing a new one for 3 yrs. Im shocked how different the XT residual is compared to the normal 2.5i or limited. I assume their is a thread here about that and why its so different?
  • dino001dino001 Tampa, FLPosts: 3,486
    It has to do with both real values (after 3 years) and level of support by the mfr. XT is a low-demand AND low-supply model, which means they sell them only to those who really want them and there is not much demand for it on the used car market (high price, low gas mileage, etc.), which pushes residuals down vs. popular 2.5i. I'm not blaming Subaru for not wanting to support them as much as 2.5i. Keep in mind that even the same percentage translates to more money, as XT is significantly more expensive.

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

  • Hello,

    I am getting ready to finalize a lease on a 2009 Outback 2.5 Limited. The terms of the lease are as follows:

    1. 36 month
    2. 10K miles per year
    3. Total of $1000.00 out of pocket including tax, tags, etc...
    4. Monthly payment including tax is $361.00 per month

    Am I getting a good deal? They say I am getting the car for $26,000.00

    All feedback would be greatly appreciated.
  • Car Man,

    I was wondering if you had current figures for MF/RV for the above models?

    Thank you in advance!

    BrnHrnt
  • Car Man,

    I'm sorry, I probably should give you some more info. I'm in the Tri-State area so I have access to Subaru of New England and NY/NJ rates. Also, do you have any idea about dealer incentives currently? I can pull the trigger now on the right deal but I'll wait if it looks like better deals coming down the pipe.

    Let it snow!!!

    BrnHrnt
  • CM,

    Last info. I'm looking @ 10,000 mile leases. (Don't use it to commute)

    BrnHrnt
  • I sure do, brnhrnt. According to the latest information that I have seen, Subaru's buy rate lease money factor and residual value for a 36 month lease of a 2008 Outback 2.5 XT without navigation with 15,000 miles per year are .00120 and 48%, respectively. The numbers for an otherwise identical lease of an '09 model are .00200 and 54%, respectively.

    The numbers for the Outback 3.0R are .00120 / 52% on the 2008 model and .00200 / 55% on the 2009 model.

    When negotiating your lease on these cars, make sure to take advantage of the $1,500 lease cash that is available on the 2008 model and $500 that is available on the 2009 model.

    Car_man
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  • Thanks Car_Man! Do you think there's any benefit to waiting for 11/3 (current incentives expire)? The economy's not looking too hot. Do you think they'll dangle a bigger carrot? How much below invoice do you think '08's should trade for at this point?

    BrnHrnt
  • You're very welcome, BrnHrnt. It is always difficult to say what manufacturers' future incentives programs will look like. If you want to lease a 2008 model, the current program might be as good as it is going to get. At some point late in the model year manufacturers usually pull the plug on their lease support for leftover vehicles as it becomes too expensive to provide reasonable payments on them. If you want an '09 model on the other hand, there is a very good chance that the lease program will get better. Again though, it is always difficult to predict exactly what will happen with 100% accuracy.

    Car_man
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  • Sound advice! Thanks again. I will post the details if I close a deal.

    BrnHrnt
This discussion has been closed.