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The most important numbers to focus on when leasing are your vehicle's selling price and the money factor that is being used to calculate its monthly payment. Make sure to find out both of these numbers before finalizing your deal. If you let me know what the selling price is I would be happy to give you my opinion of it. For now I can tell you that Subaru Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Subaru Impreza 2.5i Wagon with 15,000 miles per year are .00135 and 59%, respectively.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Msrp $35,359
Invoice $33,134*
Annual mileage 12,000/yr or 1,000/month
down payment $2500
Vip employer discount*
The next part gets tricky, but here it goes. My credit is terrible- I'm actually going through a bankruptcy right now and have to find another vehicle to purchase since my old one broke down and isn't worth fixing. I do have about $2500 for a down payment and my employer offers a Subaru VIP program discount (dealer invoice price). I also have a co-signer with good credit (high 780 range). Will a co-signer lower my interest rate? I was looking to lease between 3 and 4 years. I once heard that Subaru will not under any circumstances finance to someone who has a bankruptcy on their credit history- is this true or will a co-signer help? I've also seen companies online who claim to work nationwide to get anyone financed at the best rates possible- do you have any experience/thought on this? Thanks
Curious if you know what the lease program is for March for a Impreza WRX Wagon. I can find a program for the i wagon and work backwards to the money factor, but I can't find anything for the WRX. I am thinking either a 24-27 month lease or 36. 10-12k mi/year. If you have some rough figures I could put into a model that would be great. Many Thanks!
According to my calculations on this should put me at somewhere around $217 a month. I'm looking at going out and pricing very soon, but I want to know if my estimates are accurate. I'm looking in the range of a 3 year lease at 15k mile per year.
Any help would be GREATLY appreciated! Thanks!
Looking to check and see if the .00135 and 59% apply to current deals on the WRX regular edition and the special edition. If not do you know what the current rates are?
Currently being quoted at 56% and .0024 for 15K/year with a 36 term.
Thanks for the help.
Car_man
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Car_man
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Car_man
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Car_man
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If I don't negotiate these things, is it true that I can owe money on the back end of the lease?
Thanks!
I am new to this forum, although I'm old to Edmunds.com. I hope you'll find the time to help a newbie.
In May 2006, I leased a 2006 2.5i manual Sport Wagon. The car is great; however, I am seriously considering terminating the lease early and instead starting a new lease for a 2007 WRX Limited sedan (manual).
My current lease details (on the '06 2.5i Sp. Wagon):
- MSRP: 18,833; high, I guess;
- net capitalized cost: 17,004 (after rebates, $1,000 down payment, and negociations); good, I guess;
- residual: 8,637; low, I now realize;
- depreciation: remaining 8,367;
- APR: 2.88% (i.e. money factor: 0.0012); good, I think;
- term: 48 months;
- mileage: 15,000/ year;
So now I pay: (depreciation 174 + rent charge 31) * (tax 110%) = 225 a month.
The car is almost 1 year old, with 11,500 miles on it; exceptional condition, practically no wear and tear.
After this long introduction, my questions:
(A) If I return this car tomorrow to the dealership (good one, Day Apollo near Pittsburgh, PA), how much of a hit should I expect? In 4 years, 60,000 miles it would have depreciated $8,368... How much has the car depreciated in 1 year, 11,500 miles, in your opinion? I know I paid 174 * 12 = $2,088 towards depreciation, so I'd subtract that from your number and get an idea of how hard I'll be hit.
(B) Will it help (financially) that I want to lease another Subaru, and that I'm all good with their captive company? All I want is a more powerful car :-)
(C) For a 2007 Impreza WRX Limited (manual!), what invoice should I try to obtain; what residual value; what APR (can I get the same low 2.88%)? I'd do 48 months, 15,000 miles/year, same as I have right now.
(D) Any advice on when should I be doing this, i.e. on when good incentives might show? May, June, July? I'm 100% I want the '07 (completely personal preference on the redesign for '08).
(E) Will insurance go higher (by a lot)? I'm 26, not married, no kids, good job, okay driving record (speeding ticket last year, 10mph extra after many negociations).
I am sorry for posting such a long first message. I do hope somebody will find the time to help out.
Thanks a lot,
--Bogdan, WRX wanna-be-owner
Now is a good time. Later might be slightly better, but even if prices do creep down a tad, selection will dwindle quickly. If you're picky about color, don't wait.
Thanks for your reply.
"Being married would also help, but rates shouldn't be too bad."
I know, but... not now, hehe. :-)
Now, I'm more worried about the financial hit I might be taking on returning the '06 2.5i (details in my first message). Any guesstimate?...
Thanks,
--Bogdan
Some people prefer the old styling, so that might also help. Sell it privately, though, you'll get killed on a wholesale trade-in.
Well, I can't really sell it :-(
It's leased, so all I can try is to find someone to take over the lease, right? Or am I wrong?
How "killed" do you think I'll get?... The car depreciates (according to the lease contract) ~$8,300 in 4 years, 15,000 miles/year. Now it has 1 year, 11,000 miles. Granted, it's the first year :-( But I'm hoping that the depreciation would be something like: 1st year = $3,200; 2nd year = $2,600; 3rd year = 1500; 4th year = 1000. Am I way off?
What do people here think?
Thanks,
--B
In this case the same dealer may be your best bet. He'll be motivated to make the new deal so he may help you get out of the old one.
Still, you will have taken delivery of two brand new cars, and New Car Smell is the most expensive smell in the world.
The only charges that you may have to pay at lease-end are an excess mileage penalty if you exceed your mileage allowance, an excess wear and tear penalty if your vehicle is in rough shape, and a disposition fee if the bank that you are leasing through charges one.
Car_man
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You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.
The fact that you want to lease another Subaru through Subaru Finance probably will not make much of a difference.
If you decide to lease a 2007 Impreza WRX Sedan through Subaru Finance right now for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value would be .00245 and 56%, respectively. When negotiating your lease on this car, make sure to take the $500 lease cash that is currently available on it into account.
Car_man
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First off, thank you for your detailed reply. This forum lives up to Edmunds.com reputation.
I've read my current lease contract in detail. It allows me to end the lease early, provided I pay: I - P - R + F, where:
I = Invoice.
P = Payments made so far (the part credited towards depreciation).
R = Realized value of the vehicle (that me and the dealer agree upon).
F = turn-in lease fee.
Now:
I = 17,000 (in contract), F = 300 (in contract).
Then, hopefully:
P = 175 * 13 = 2,275, since I've made 13 payments of 225 = depreciation 174 + rent charge 35 + tax 10%.
R = 13,415, since that's the trade-in value appraised by Edmunds.com, for 12K miles, outstanding condition.
So I'd have to pay 17,000 - 2,275 - 13,415 + 300 = 1,610.
Now, since R is negotiable, the end result may vary; I assume/ hope it won't go north of, say, 1,900. I could factor that in the new lease and pay approx. $40 a month. I know, paying money for a car I won't be driving...
Can you please tell me if my process of thought is far off? That is, am I dreaming dreams here or is this actually possible? (I did read the contract very carefully).
I mean, having a $2,000 negative equity doesn't sound exactly like a dream, but... I want the WRX really bad. :-)
Please let me know of your thoughts.
Thanks,
--Bogdan
A couple more things, sorry for bugging you: on my current lease I got a 2.9% APR (through Subaru Finance, May 2006) and a bad residual value (aprox 47%). I see that the APR you quoted for the WRX for April 2007 (right now) is significantly worse, i.e. 5.9%, but in the same time the residual value is way better, i.e. 56%. So...
(A) Do I stand any chance of "keeping" the old APR for the new lease? Or was that just an offer that I got last year, and I got it because it came with a bad residual?
(B) Any "prediction" for the incentives for May 2007, through Subaru Finance? That is: APR (or money factor), residual, cash rebates? For leasing a WRX (possibly Limited), 48 months, 15K miles/year, I mean.
(C) Can you please tell me where do you get these numbers from? Googling "Subaru Finance" yields no good results...
Thanks so much,
--Bogdan
do you have the current residual and MF for 2007s? 24 month, 12 & 15k.
Also, with the next gen 08 comming out soon - would you say that the value of leftover 07 would drop significantly? How will the selling prices be affected?
Thanks
Car_man
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I believe that Subaru's May lease program for this car is pretty similar to what its April lease program was like. I am not aware of any resource that provides accurate information on manufacturers' current lease programs to the general public.
Car_man
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I am not intimately familiar with what the market is like for the '07 WRX right now, but I suspect that dealer will be fairly anxious to unload their leftover '07s before the redesigned '08 model arrives. You may be able to get an idea of what you will have to pay for one right now by visiting the following discussion: "Subaru Impreza & Impreza WRX STI: Prices Paid & Buying Experience".
Car_man
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Thanks a lot for your help. This forum was an invaluable resource for me in my car leasing experience.
To give back a bit, I'll share the details of my business.
I traded in a 2006 Impreza Sport Wagon, 2.5i, manual, 11,800 miles, exceptional condition. On that car, I had obtained a 2.9% APR for 4 years, 15K miles/year. I negociated its value to something really close to $14K (a few good hundreds over Edmunds' trade-in value).
I got a brand-new 2007 Impreza WRX, sedan, Limited Package (additional option: auto-dimming mirror w/ compass), stick-shift of course (I'll kill myself before buying an automatic, hehe). I negociated it down to a tad bit over $26K. The residual was a bit south of 50% and the APR was under 6% (same deal: 4 years, 15K miles/year).
To wrap up: the base Impreza is a great car for the money, and its little engine does wonders when revved up. It handles well, and the AWD sends traction appropriately. However, it's no match for the WRX, neither in price nor in performance. The WRX pretty much leaves the competition in the ground... it really takes something along the lines of an STI/ Mitsu Evo/ Carrera/ M3/ S4 to beat it. The Limited Package is a nice plus... my girlfriend loves the heated seats, hehe. Bottom-line: get yourself a WRX, turn off the stereo, roll back the sunroof and enjoy the music of the turbo.
Thanks everybody,
--Bogdan, WRX FTW :-)
Does car_man (or someone else) have the current money factor and residual for an Impreza 2.5i, at 36 months, 15k miles per year? I'm in California.
Thanks.
How did you not get killed with money owed on the 06 sport wagon? I'm trying to trade in an 05 legacy GT wagon to lease an 07 wrx sedan and I'm getting killed with money owed. Plus, since we bought the car, we have made higher payments and I'm still getting killed.
Stephen
I am interested in leasing a 2007 wrx wagon ((msrp=$25,927) sale price incl. $1000 rebate = $23,500). What would the pretax lease payment be for a 36 or 48 month lease with 12k mi per year?
Ditto on an Impreza 2.5i wagon (MSRP = $19,299) (sale price of $17,500)?
Thanks for helping me out.
Jeremy
I have been reading the thread and the information is really useful. I was wondering, is there anyway to bail out of a signed lease before the term expires. I currently have an impreza and I was wondering if there is any legal and easy way to end the lease prematurely.
I actually was just talking to my dealer about this. This was the response I was given which makes sense to me.
"There is currently a buyout for your lease, you would want to compare that number with your car's wholesale market value i.e. what we will pay you for it.
If you were to say "I want out of my lease right now" you have 2 options....
1. Make ALL your remaining payments and give the car back
2. Trade the car.... if the difference between the trade in value and your buyout is less then the total of your payments this would be a better option."
So basically you need to find out your buy out price and go from there
Anybody knows what is the current Subaru lease program ( money factor and residual value ) for Impreza 2.5 2007 wagon - auto or manual?
I want to lease a manual for 36 months/$0 down/12K miles/year?
I know the new model will be out soon - so the price should be pretty low - there was a price in the paper $15800.
Thanks,
Thedork
The payments for otherwise identical 36 and 48 month leases of the 2007 Subaru Impreza 2.5i Wagon with an MSRP of $19,299 and a selling price of $17,500 are $220 and $234, respectively.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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5 door Premium package 3 years 10,000 miles
Do you have the August buy rate lease money factor and residual for a 2007 WRX STI? 36 month, 12k/yr.
Thanks
thanks
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Once you have this car's MSRP and selling price, you can use them along with its lease program to estimate what your monthly payment should be. Subaru's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Impreza 2.5i Sedan with 12,000 miles per year are .00130 and 59%, respectively. If you provide me with the MSRP and selling price, I can use these numbers to estimate your payment for you.
Car_man
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Car_man
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Prices Paid: Buying & Leasing Experiences Forum
I'm trying to lease 2008 WRX 5dr with automatic. It comes with premium package. The dealer is saying that he is giving it to me for invoice. The terms are:
$0 at sign in.
36 month
10,000 miles
$485 a month including tax
I'm in Los Angeles 8.25 tax
Does this sound right to you. Seems high to me, but I'm not giving any down payment so maybe as good of deal as I can get don't know. Wanted to lease this weekend, but now don't know.
Invoice price $18,273
$0 down at sign in
12,000 miles
I'm in Amherst NY... 8.75 tax
36/42/48 month lease (whatever gives me lowest price)
What would be my approximate monthly payment?