2013 and earlier-Subaru Legacy Lease Questions

altimate · September 2008

Spoke with the dealer yesterday and the indication was that the residuals are down about 4% from August to September. Since my dealer didn't have any availability last month my salesman worked a price reduction on my lease deal to erase most of the residual change.

My deal will only be about $5/mo. more than the August quote with nothing out of pocket except first payment.

My decision right now is whether to go with the monthly lease or do a prepaid lease deal. That would save me close to $600 dollars over the life of the lease. I have a $4000+ equity for my trade so prepayment would only cost me about $3000 out of pocket. On the other hand, getting over $4000 cash back from my trade (not using it for cap cost reduction-which is always a bad idea) would give me opportunity to invest money and or use it for the first year of payments.

Expect the car I want to be in in about two weeks so I'll make the decision at that time.

hellagrant · September 2008

That sucks you will end up paying a bit more for the Legacy compared to last month, but it is still a great deal!

I would say avoid the prepayment. Yes you will say $600 but most people in America don't have enough emergency funds. Use the $4,000 to pay down other debts that you may have (like credit cards or any other high interest loan). If you don't have any high interest debt than use the $4,000 for liquid savings (probably only get you like 3 %or 4% right now.

But I am assuming you are like 75% of the American population without a real good emergency fund. If you have enough backup liquid money and no debt, than go for the prepayment or use the $4,000 to reduce monthly payments.

altimate · September 2008

Thanks for your input. I've got a lot of expenses coming up in the next few months (estimated taxes due, moving expenses) so I think it makes more sense to get the $4000 cash back and just make the monthly payments. It never hurts to have a little extra financial cushion.

CarMan@Edmunds · September 2008

Hi fin81. Subaru's current buy rate lease money factor and residual value for a 24 month lease of a 2009 Subaru Legacy SE with 15,000 miles per year are .00280 and 74%, respectively for consumers who qualify for its top credit tier.

It sounds to me as though the dealer that you are working with is trying to mark-up Subaru's base acquisition fee to add additional hidden profit to your deal. The last time that I checked, its base acquisition fee was $595.

Car_man
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CarMan@Edmunds · September 2008

Here's the information that you're looking for, epmorris. Subaru's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Forester 2.5X Premium with 12,000 miles per year are .00160 and 58%, respectively.

Car_man
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mssurrey · September 2008

Hi Car_Man,

I went to the dealer yesterday regarding an 09 2.5 SE and this is what they told/offered me:

Lease 24 month / 12k miles.
MSRP is $24693
Sale price is 21214.
The salesperson didn't 'know' about any acq fee - but said it there was one it would be 'buit-in'.
Doc fee 180
T+R also 'built-in'
Res is 75% (18519)
MF is .00280

OTD inc 6& tax = $263-90

First, does this seem right to you? Theys eemed quite loathe to give me figures and I had to wait along time just to get these out of them!

Also, they're not budging from the sale price and not offering any other financial 'incentives' saying that the lease deals are as per the national ads ...

I also went to another dealer and they didn't have any cars available for at least 3 weeks - but I need a vehicle by next week.

I'd appreciate your input. Thanks
Sam

amukhi · September 2008

I am interested in leasing the legacy special edition automatic
how much do you think the lease would be on this if I put 1,000 down plus tax
for about 24 or 36months 10 to 12k miles
the sticker on the car is $23,059
any special deals in the ny area for this

bmlan99 · September 2008

I am looking to purchase a 2009 Subaru Legacy 2.5 limited. The sticker is $26800. The dealer has quoted me $299 for 36 month with 15k per year with $2950 down? Is this a good deal?

altimate · September 2008

It's my understanding that the Limited actually has a poorer residual than the SE.

I just took delivery today of an SE with aftermarket leather and XM radio and a 2 year lease with 15000mi was $328 (tax inc.) with nothing out of pocket except the first payment. I know the Limited has a few extras auto climate cont., leather wheel, fogs and leather seats. You can get leather seats, fogs installed. If you can live without leather wheel and climate control I think you could do much better with an SE lease.

I will tell you I was absolutely stunned how nice the interior looked in my SE with the leather added. To me it matches a car that is 20 grand more expensive.

The upshot is that dressing up an SE might save you some money over a Limited.

ateixeira · September 2008

The Limited package isn't as good of a value as the SE.

The SE, to me, is a must-have. It makes the base model seem redundant.

red927 · September 2008

Car_man:

Can you please post the MF and Residuals for a 2009 Legacy 3.0R Limited? I would like the rates for both 24 and 36 month leases with 10,000 or 12,000 miles. You have always been helpful in the past and I do appreciate the information. This car will be replacing an 06 Outback 3.0 LL Bean Sedan whose lease expires in November.

Thanks,
Phil

ps2cheung · September 2008

Hi,

I saw this lease deal

# Price: $66 /month Lease Payment
# Term: 24 months
# Down or Due: $3,100
# Mileage Allowance: 10,000 miles/year

for a 2008 Subaru Impreza in a Bellevue, WA dealer

The price sound pretty good, is there anything I need to watch out for?

Thanks,
Ivan

ateixeira · September 2008

That's not a lot of miles...you sure that's enough for you?

I once read the average male drives 16k miles/year. I don't recall the source, but you could go way over on the mileage and pay a big penalty for that.

CarMan@Edmunds · September 2008

Hey Sam. The money factor and residual value that you were quoted look right. I'm not surprised that the dealer that you are working with was reluctant to provide you with the details of your lease. As far as they are concerned, the less you know about your deal the better.

Let's work up a sample lease payment on this car and see what we come up with. According to my calculations, a 24 month lease of a Subaru Legacy with an MSRP of $24,693, a selling price of $21,214, a money factor of .00280, and a 75% residual value would have a zero down, pre-tax monthly payment of around $224. If you add the $595 acquisition fee to this car's capitalized cost instead of paying it at lease signing, the payment rises to around $250 before tax.

Have you tried comparison shopping with any other dealers yet? It wouldn't hurt to do so to see if any others in your area are willing to beat this price.

Car_man
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CarMan@Edmunds · September 2008

I'd be happy to help you out, red927. Through the end of September (unfortunately today) Subaru's buy rate lease money factor and residual value for a 24 month lease of a 2009 Legacy 3.0R Limited with 12,000 miles per year are .00280 and 64%, respectively. The numbers for an otherwise identical 36 month lease are .00200 and 54%. If you were to lease this car with only 10,000 miles per year, its residual values would be 1% higher.

When negotiating your lease, make sure to take advantage of the $500 cash incentive that Subaru is providing on leases of this model right now.

Car_man
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pd83 · October 2008

Theres a current lease deal at the Subaru dealer ship near my house.

$2000 down, 159/month for 24 months..

Is this a good deal?

hellagrant · October 2008

Yes, as long as $2,000 down is the only thing you have to give upfront.

Hell, with sales dropping like crazy, I say try to get it down to $1,000 down. Depending on where you live, I think that is highly possible.

djhalptert · October 2008

No. Don't put money down on a lease. Put that money in the bank and pay your slightly higher lease payment. If your car is stolen or a tree falls on it and crushes it you will be out the $2,000. Insurance won't reimburse you for down payment. Sign and drive is the way to do it.

wjpooley · October 2008

I've always like Subaru's, but now that I've got my first "real" job (just graduated), I've been looking at an '09 Subaru Legacy SE. I 'll be driving around 12,000 miles just to work and back, so I requested some pricing with 18,000 miles annually.

The dealer in Toledo, OH has the exact car I want for around $23,458. Their "sale" price was $21,457. With the 18K miles, and two year lease, their offer was $348 a month with $1,400 down.

This doesn't sound like a great deal to me, but it does have considerably more miles than most of the leases I've seen on here.

The SE I'm looking at is "Diamond Metallic, " with grey interior, fog light kit, and dimming mirror w/compass. All of the other options are the standard SE package (stereo, sunroof, etc.)

Any thoughts?

djhalptert · October 2008

I would buy the car for $21,400 at 3.9% for 72 months and payment would be $334 a month. Then I would use the $1,400 you were going to put as a down payment and put it towards your sales tax. Unless you get a lease quote for $234 BUY IT. That's the general rule I go by. If it doesn't save me at least $100 a month, I buy it.

They should only be charging you $900 (10cents per mile) for the extra mileage but the 18,000 per year is going to lower the residual and make leasing just not worth it. You could probably lease this car for $250 plus tax on a normal 36 month 15,000 mile lease.

indianajohns · October 2008

CarMan,

I am interested in the 2009 Subaru Legacy Limited 2.5i lease rates for October. I would like the 24 and 36 month rates and residuals for 10,000 miles per year. Thanks.

indianajohns · October 2008

Actually he was only being quoted 24 month lease so the mileage should've only been $600 extra. 6,000 miles times .10. They just aren't giving you a good deal either way. I'd find a different dealer and see what they will quote you.

wjpooley · October 2008

Thanks, I did find a different dealer.

For the same amount of miles and a car with an MSRP of around $24, 600 (has some extra features), they offered me a rate of $324 a month. Better deal, just not what I was hoping for.

Adding to the rate is my "Tier B" credit level (a little too much fun with the credit cards in college).

Carman - Any idea what next months residuals may look like? I can hold off a little for a new (or new to me) car, but the car I've had for the past 9 years is on it's last legs. Any tips for haggling/negotiating are welcome too.

indianajohns · October 2008

Car Man,

Can you please post the 24 & 36 month lease numbers for an '09 Legacy Limited with 10,000 and 12,000 miles? Also, please advise the Subaru acquisition fee. I had a dealer quote me $795 not $595. Thanks.

1985mb · October 2008

Hi - what are the 24mo residuals and MF for 2008 and 09 2.5i LIMITED models?

And how much of a discounted selling price/cap cost can realistically be expected for remaining 08s? Either relative to msrp or relative to invoice...

CarMan@Edmunds · October 2008

Hi Indy. Here's the info that you're looking for. Subaru's current buy rate lease money factor and residual value for a 24 month lease of a 2009 Legacy Limited 2.5i with 10,000 miles per year are .00280 and 72%, respectively. The numbers for an otherwise identical 36 month lease are .00185 and 60%.

When negotiating your lease on this car, make sure to take the $500 cash incentive that Subaru is providing on leases of it into account.

Car_man
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CarMan@Edmunds · October 2008

Hi indianajohns. Please see my previous post for the lease program data that you are interested in. In answer to your second question about Subaru's acquisition fee, the last time that I checked...and it was not that long ago...they charged $595.

Car_man
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CarMan@Edmunds · October 2008

Greetings 1985mb. Subaru's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Legacy Limited 2.5i Sedan with 15,000 miles per year are .00120 and 62%, respectively. The numbers for an otherwise identical lease of a 2009 model are .00280 and 70%.

I am not intimately familiar with what the market is like for the Legacy right now, but for the most part dealers are hurting for business everywhere. If I was interested in getting an '08 Legacy, I personally would offer a couple hundred dollars over invoice and then have the dealer subtract the $1,000 cash incentive that is available on leases of this model from that.

For additional pricing feedback on this model, hop on over to the "Subaru Legacy Prices Paid and Buying Experience" discussion.

Car_man
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mnappi0606 · October 2008

Hi CarMan!!

Can you tell me the money factor and residual for the following scenarios on a 2009 SE with a 36 year term:

12,000 mi/year
15,000 mi/year

Also, do you know if there are any cash back promotions I should know about? Is this legacy model the one with the best MSRP/residual ration or is there more bang for the buck without the SE?

Thanks in advance!

altimate · October 2008

I leased an 09 SE in September and the residual with 15000 mi. was 74% (I believe it was 75% with 12000). In October the residual on an SE appears to be 70%. It was close to 80% in August (an amazing figure).

As to your question, my salesman told me that the SE had the best residual and was several percentage points better than a Limited. So you will definitely do the best payment wise with an 09 SE.

conwayma · October 2008

Car_man:

I am looking to lease a 2009 Legacy SE and want to run the deal by you. The MSRP is $23710. Price paid would be $20675. 24 month Term, 20,000 miles per year allowance. $999 down plus first month payment. Money factor is .00280 and residual percentage is .74. The monthly payment is 269.00. Tax, title, reg, acq fee, and additional miles (5000) are all included in the 269.00.

Is this a good deal? Are there any other points I should try to negotiate? I drive about 19000 a year so I thought it made sense to buy the extra 5000 up front.

Thanks for your advice
-Eric

sm5199 · October 2008

Hello,

I'm in Western NY. I have contacted two dealers about leasing an 09 SE. They both agree there is no $500 rebate on this car. Where do I find info about this?
Here is the deal from one dealer:
10K miles
24 months
price $22,155
includes arm rest ext.,splash guards,floor mats.
$1200 for my trade, $1500 cash (taxes,fees)
$199 lease payment.
I was thinking more like $21,000 for this price.....is that reasonable or is this a decent deal?

Thanks :confuse:

CarMan@Edmunds · October 2008

Here you go, mnappi0606. Subaru's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Legacy SE Sedan with 15,000 miles per year are .00230 and 61%, respectively. The residual value for a lease with only 12,000 miles per year is 1% higher.

When negotiating your lease on this vehicle, make sure to take the $500 cash incentive that Subaru is providing on it into account.

The money factor is better for non-Special Edition models, but its residual values are lower...which cancels out most if not all of the difference.

Car_man
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CarMan@Edmunds · October 2008

Hi Eric . The selling price that you were quoted for the Legacy that you are interested in looks good to me, but you probably would be better off going with a 36 month lease. I know that it is a year longer, but the money factor for 36 months is better and you can spread out your car's initial depreciation hit out over an additional twelve payments. I suspect that the payment for a 36 month lease is much lower than the 24 month payment would be.

You definitely are better off purchasing the additional miles in advance. It is cheaper to do so than to wait until lease-end and have to pay an excess mileage penalty.

Car_man
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rhett78 · November 2008

I stumbled onto a website that had quite a bit of interesting information if anyone cares to check it out: www.cars101.com :surprise:

ranger_bob · November 2008

Hi Car_man,

I'm looking at a 24 or 36 month lease on a Legacy SE, with 12k or 15k miles. Any information you could provide would be greatly appreciated.

Thank you!

ranger_bob · November 2008

edit: Not sure if you need it, but I'm shopping from the state of Minnesota.

CarMan@Edmunds · November 2008

Hi ranger_bob. Subaru's current buy rate lease money factor and residual value for a 24 month lease of a 2009 Legacy SE with 15,000 miles per year are .00230 and 71%, respectively. The numbers for an otherwise identical 36 month lease are
.00195 and 59%. If you were to lease with only 12,000 miles per year this car's residual values are 1% higher.

When negotiating your deal, make sure to take advantage of the $500 cash incentive that Subaru is currently providing on leases of this car.

Car_man
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canes320 · November 2008

Can someone please provide the November 36 month 12k mile and 15k mile residual and money factor for a 2009 Legacy 2.5GT Limited w/Nav ? Your help is greatly appreciated.

Kind regards,

Peter

28firefighter · December 2008

We just did this deal:
2009 Subaru Legacy 2.5i Special Edition
Automatic Transmission
Spoiler
Satellite Radio
Splash Guards
All-Weather Floor Mats
Quartz Silver Metallic
Charcoal Gray Interior
MSRP: 23,9xx

Lease Deal
$1000 total due at signing
$199/month + tax
24 months
10,000 miles a year

Deal was negotiated in under 15 minutes. Probably due to the fact that its a national program from Subaru.

This was outside Philadelphia, PA

So far we love the car...could be a new subaru family maybe?

ateixeira · December 2008

Sounds good, congrats. Not too much down and a very reasonable payment.

28firefighter · December 2008

Normally we wouldn't have put anything down, but given the national leasing special from november it took very little to get it under 200...so we figured why not.

Anyway, car is going back to the dealer on Friday to get a couple issues we found during delivery, but aside from that it is really a great 3rd car.

Iago · December 2008

I'm in Allentown. At what dealership did you get this deal?

ksrp · December 2008

I am trying to reconcile this deal to the standard lease payment equation. As I understand it, these are the components of the monthly payment excluding taxes -
i) Depreciation Fee = (Cap Cost - Residual)/Term
ii) Finance Fee = (Cap Cost + Residual) * Money Factor
Monthly Payment (excl. taxes) = Depreciation Fee + Finance Fee

Car_man has published Subaru's Money Factor and Residual for the Legacy at 0.00230 and 72% for a 24 month term at 12K miles/yr. Noting that this deal was for 10K miles, I would imagine that the residual goes up another point or two at most. Using $24K as the Cap Cost, I get a monthly fee of nearly $360. So, this special program from Subaru must be discounting the Cap Cost enormously (more than 25-30% ??) to get to a $199 monthly payment.

Does this sound about right?

28firefighter · December 2008

The capitalized cost was 22k and change. I am unsure of the money factor and residual since I went about this, really the wrong way to shop but thats another story.

I know the residual at the end of the lease is something insane like $19,xxx.

24 months/10k miles a year.

Sorry I know this doesn't help a whole lot - as far as the dealer, I can't give out dealer names on these boards I don't think.

Hope that helps a little bit.

red927 · December 2008

You can give dealer names and locations, just not specific sales consultants.

28firefighter · December 2008

In that case we worked with John Kennedy Subaru.

cdnj1 · December 2008

Hi all,

I've quotes for both for 36/36 leases (in Northern New Jersey)...

SE:
Residual - 61%
MF - .00210
adjusted cap - 21609
At signing: 1277
Monthly: 285

Limited:
Residual - 57%
MF - .00155
adjusted cap: 24415
At signing - 1320
Monthly - 329

Thoughts on either of these deals? Are 24/24 leases a better deal on Legacy?

Thanks in advance...

cdnj1 · December 2008

note on #253 above..."adjusted cap" is initial cap + tax.

can anyone tell me how tax is calculated on a lease in nj? i cannot figure it out for the life of me...

SE:
initial cap - 20889
tax - 720.21

Limited:
initial cap - 23592.24
tax - 823.13

thanks.

kyfdx · December 2008

I'm pretty sure that NJ taxes the total amount of payments + any cap cost reduction, and collects the money upfront (which is why they are adding it to the cap cost).

regards,
kyfdx
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