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2013 and earlier-Subaru Outback Lease Questions

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  • jayriderjayrider Posts: 3,450
    Or with some research lease a much more expensive car for the same $'s. Leasing makes the most sense on a higher ticket vehicle with a healthy discount and good lease numbers. The outbacks are hot so discounts are unexciting. Lower priced cars are equally unattractive when you can do better purchasing.
  • cdnj1cdnj1 Posts: 16
    thx again stoopy. i'm not sure the 72 month option is the "cheaper" option with the higher interest rate and extra year of payments. i'm certainly interested in controlling the monthly payments, but its really the total cost that's most important, including the cost of the money.
  • ateixeiraateixeira Posts: 72,587
    Forester has better residuals, better rates on the few 09s that are left.

    But he's right, these are selling well so there are few incentives to make a bargain lease.
  • Hi all, newcomer here but finding everyone's advice extremely helpful. I'm negotiating a 36 month/12k lease of a 2010 OB 3.6R with sunroof, all weather package, premium audio with bluetooth, auto dimming mirror and cargo net. Offered:

    Invoice price of $27,118
    Residual: 54%
    money factor: .00170
    $1399 drive off and monthly of $389.55 + tax = $427.53

    Almost $80 better than I was quoted 6 weeks ago, so feel like dealers are starting to give a bit. Would greatly appreciate thoughts on this deal, as well as others' experiences. Trying to negotiate down to $500 under invoice, but I'm liking the deal.
  • I am about to purchase a 2009 OB 3.0 with Nav for $29,500 with bank financing. This is Subaru executive car that has not been titled. Is this price ok? Time is of the essence here!

    John
  • ateixeiraateixeira Posts: 72,587
    How many miles?

    I'd aim for 10% below the invoice cost of a new one for a program car. Unless it has less than 1000 miles or something.
  • Can anyone provide current lease terms for an Outback 2.5i with the CVT, no options? I am interested in 24, 36 or 42 residual values as well as the money factors. Thank you
  • Greetings statefan. Here's the info that you're interested in.

    Subaru's current money factor and residual value for a 36 month lease of a base 2010 Outback 2.5 with 15,000 miles per year are .00155 and 53%, respectively.

    The numbers for an otherwise identical 42 month lease are .00160 and 48%.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • A 36 month lease - 12,000 mile lease will come to an end 1-31-10. Finance company wants $15,235 residual, plus tax, plus DMV fees to buy the car. Car has 32,000 miles. Is it a good deal? I think the residual is too high. Please comment.
  • Residuals are always a problem one way or the other. Its fairly rare for the purchase to work in your favor - boosting residual was a known way to lower lease pricing when they were considered good for volume by manufacturers. Look at the residuals $ and % in play now - typically quite a bit lower.

    A large number of leases have residuals that are unrealistic in todays market, the problem is the lease company is not interested to drop your price, that reflects on actual resale prices - its typically a different pocket if they take a bath when selling at auction.

    Don't know who your lease Co is, but I got the same approach with every lease end in the last few years.

    State Tax and DMV fees are unavoidable.

    Roos tend to hold their resale price well, so check out the local market for used ones with same spec and miles and decide what a known condition car is worth to you. :D
  • ateixeiraateixeira Posts: 72,587
    I think it's a fair price actually, especially since you're familiar with the previous owner! ;)
  • Wayne, NJ Subaru Dealer -
    According to lease - gross capitalized cost $24,000. According to ALG, Subaru residual percentage is 50% = $12,000. Should residual be around $12,000 or so? Please advise.
  • You can't compare the residual % of today to the one in your current lease.

    You accepted the higher residual price to help your monthly payments. The purchase price in your lease is what they will hang out for.

    You can offer them less but who knows.....
  • hello, anyone know that lease factor and residual for a 36 month 12k mile a year lease. also anyone have a dealer suggestion in the michigan ohio area?
    thanks
    ryan
  • nickr1nickr1 Posts: 51
    I'm considering the Outback lease but the prices I see are very high for what it is. What am I am missing here, I thought this was an economy AWD, one of the cheapest made today, but $29,000 and over $400 a month for a lease, that seems outrageous for a car like this. When did Subarus and Outbacks become so expensive? Why are there no good incentives? Is this car really that hot, and really worth these prices?

    What's the lowest down and lowest monthly they are likely to give on the 2010 3.6R or 3.6R Limited? Thanks.
  • ateixeiraateixeira Posts: 72,587
    Well, keep in mind the average new car is up near $30k (28 something last time I heard a NADA figure), and most of those don't have AWD, usually about a ~$2000 option.

    So the average AWD vehicle is probably priced in the 30s. And I think the Outback is nicer than average, especially a 3.6R Limited.

    With even the best residuals in the 50% range, you're talking about $13,500 depreciation in 3 years even at 55% residual. Divide that by 36 months and before we even factor interest or anything else, you're at $375 per month.

    Sure you can negotiate a bit, but add taxes and fees, and you're back up to $400. It actually sounds about right to me.

    The car is definitely hot. Both November and December sales were more than double the year prior.

    Consider a Forester, for 2 reasons:

    * prices are a bit lower to begin with
    * residuals are fantastic, up to 59-62%
  • nickr1nickr1 Posts: 51
    Okay, but really, in this economy this car sells well for $400 a month lease. really? 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.
  • ateixeiraateixeira Posts: 72,587
    $199 leases are for stripped base models and often only happen with $4000 down when you read the fine print. And that's before 6% tax (or whatever your state has).

    I think you're expectations are way too...low, I guess.

    We are talking about a large, loaded, 6 cylinder, AWD, highly sought after vehicle.

    For $199 you can lease a small FWD noone wants, sure.

    I think they had a Forester lease for $259, but again, with a big down payment, and that's a 2.5X model with plastic wheel covers, no tinted windows, and cloth seats.
  • nickr1nickr1 Posts: 51
    Yeah, I know what $200 a month leases, nothing, and that's because when you pay the large down payment it's way over $200 a month. Leases have become a way for dealers to make huge profits on people who can't get loans or have no down payment for a loan or can't afford a loan which is always way higher per month than a lease. Yes, you own the car if you buy, but what's it worth after you pay off a 5 year loan?

    I was talking with a dealer about the Nav, just to talk, I would never buy one. I asked the price, he said $2,000, I said: how about $200, that's what a good Garmin costs, then I added: you people need to get real with your crazy prices. Of course, he doesn't own Subaru.

    Just let this economic downturn go on for a year or two or three more, then check back on the price of a Forrester and the Nav, I guarantee you it won't be what it is now.
  • ateixeiraateixeira Posts: 72,587
    OEM Navi is *grossly* overpriced, IMHO. For $2 grand or so most don't even have text-to-speed, and most come with outdated maps the day you buy them. Heck, the $230 updates Subaru sells will buy you a Garmin with more features, and half that amount buys you lifetime updates for it.

    Nissan is coming out with a $400 unit with a small screen, but it'll even include a backup cam. That will be game changing. The multi-thousand dollar Navi packages will soon include stuff like myFord Touch offers. I think we'll soon see much better values./buying

    Back to leasing...

    what's it worth after you pay off a 5 year loan?

    For a Subaru, a lot!

    I kept my Forester for 9 years, and still got back $5550 (paid $19.2k new).
  • 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:
This discussion has been closed.