2014 Subaru Outback Lease Questions

Karen_S

For current leasing information, go to 2015 Subaru Outback Lease Questions

For current Pricing information, go to 2015 Subaru Outback Prices Paid



Welcome to Edmunds discussion dedicated to 2014 Subaru Outback leasing questions.
Here you can find and discuss all the latest lease details for the 2014 Outback, including cap costs, money factors, residual values, acquisition fees, etc. Please post any leasing questions you have or any details you’d like to share about your own lease deals

You can also research local dealer inventory and get pricing, reviews, features, and specifications on our 2014 Subaru Outback page.

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cbass16

Does anybody have the August residual and money factor on a 2014 Subaru Outback 2.5i Limited with Moonroof + Nav? Thanks!

quantifire

For a 2014 2.5i Limited with Moonroof, no Nav, I was quoted 57% residual, .00150 MF, for 36 months and 15K per year. In Northern California.

cbass16

Thanks. Same here in Fairfield County, CT. Just wanted to validate.

subadrew

Hi Car Man,

Do you have mf and residuals for 2014 Outback 2.5 limited with nav, 12k and 15k?

thanks,
Andrew

kyfdx

2014 Outback 2.5 Limited with Nav 36mo, 15K/yr lease
.00097 MF and 54% residual. Add 1% for 12K/yr

regards,
kyfdx

t777

Do you have the MF and Residual for a 36mo 12k/yr lease of 2014 Outback 2.5i Premium?

Thanks.

kyfdx

2014 Outback 2.5i Premium 36mo, 12K/yr lease
.00057 MF and 56% residual

regards,
kyfdx

neofight

Can someone help with lease figures for a 36 month lease, 15,000/miles/year, moonroof package. No navigation package. In the Chicago area. Being told a couple different things for both the residual and the money factor.
Thanks.

kyfdx

2014 Subaru Outback 2.5i Limited 36mo, 15K/yr lease
.00057 MF and 55% residual

regards,
kyfdx

joenavy

What are the numbers for a 2.5 premium? Looking to get one in Maryland.

judson3

I'm planning to lease a 2014 2.5i limited Subaru Outback in Northern California this month. Does anyone have the current money factor and expected residual value %? I've seen special leasing offers, but can't find the specific figures.

kyfdx

2014 Subaru Outback 2.5i Premium 36mo, 15K/yr lease
.00057 MF and 55% residual

regards,
kyfdx

jpbriggs

Looking to possibly lease a 2014 Outback 2.5i Premium w/moonroof and camera package near Boston, MA. Wondering if lease details folks have been posting will be similar in my neck of the woods.
Thanks!

kyfdx

The numbers given are national, as long as the dealer uses Subaru Motors Finance (aka Chase). I think some New England dealerships are serviced by a distributor, and not directly by Subaru, so that could possibly cause differences, but I don't have any direct knowledge.

kyfdx

bcampbell001

Hello kyfdx..........
If you would be so kind as to post Chase's February MF/Resid. for a 3.6R limited, Moonroof/NAV for a 36 / 15 lease,...I would appreciate it

Thanks!

kyfdx

@bcampbell001 said:
Hello kyfdx..........
If you would be so kind as to post Chase's February MF/Resid. for a 3.6R limited, Moonroof/NAV for a 36 / 15 lease,...I would appreciate it

Thanks!

.00079 MF and 53% residual

For the edification of our members, Chase = Subaru Finance

bcampbell001

Thanks!

tf71307

Do you have the MF and residual for a 12k and 15k, 36 month lease of a 2.5i Premium Outback for March? Thanks in advance.

kyfdx

@tf71307 said:
Do you have the MF and residual for a 12k and 15k, 36 month lease of a 2.5i Premium Outback for March? Thanks in advance.

.00039 MF and 54% residual for 36mo, 15K/yr lease. 55% for 12K/yr.

welak

Do you have the MF and residual for a 12k 36 month lease of a 2.5i Premium Outback for March? Thanks in advance

Michaell

@welak said:
Do you have the MF and residual for a 12k 36 month lease of a 2.5i Premium Outback for March? Thanks in advance

55% and .00039

welak

thank you

welak

Sorry I meant to ask for the April MF and residual numbers

kyfdx

@welak said:
Sorry I meant to ask for the April MF and residual numbers

Those are the April numbers.... @Michaell must be psychic.

Michaell

Huh .... I never saw March in the original post. Just assumed it was a request for the current month.

welak

Hmm... well I went to negotiate this weekend and was given an MSRP of 50% and residual of .00060 - they even brought out both the "finance book that listed all the models and rates" as well as the lease paperwork, I guess I will wait till next month. thanks

kyfdx

@welak said:
Hmm... well I went to negotiate this weekend and was given an MSRP of 50% and residual of .00060 - they even brought out both the "finance book that listed all the models and rates" as well as the lease paperwork, I guess I will wait till next month. thanks

Then, they quoted you for a 42 month lease..

Not sure how waiting until next month will solve a dealership communication problem, though.

btmcgrath

@kyfdx Any quick feedback on Chase numbers for a 2014 Outback 2.5 Limited (no MR no navi) for a 36mo 12k/yr lease in Ohio? Chase/subaru have any lease money to the dealers?

Michaell

@btmcgrath said:
kyfdx Any quick feedback on Chase numbers for a 2014 Outback 2.5 Limited (no MR no navi) for a 36mo 12k/yr lease in Ohio? Chase/subaru have any lease money to the dealers?

54% and .00039. No lease cash that I can see.

Kirstie_H

Not that weather is usually a deterrent to a Subie fan...
A reporter would like to speak to a recent car buyer/shopper who delayed purchasing their car because of the cold weather. If inclement weather prevented you from buying a new or used car earlier this year, please send your daytime contact info to pr@edmunds.com no later than Tuesday, 4/29/14 at 8 a.m. PT/11 a.m. ET.

nkf2008

Subaru's are terrible to lease, they never have any good programs. I was in a market for an Outback a year ago and it made no sense to lease a car that was MSRP of around 35k for near 500$ a month plus tax.... stay away from leasing Subaru. just my opinion. good luck

btmcgrath

@Michaell@Edmunds ... I am getting pushback from the dealer and he is quoting .00079 for the Limited MF and the .00039 MF is on the Premium trim. I am in SW Ohio. Can you confirm either way.

Michaell

@btmcgrath said:
Michaell@Edmunds ... I am getting pushback from the dealer and he is quoting .00079 for the Limited MF and the .00039 MF is on the Premium trim. I am in SW Ohio. Can you confirm either way.

Both of those MF's are correct for 36 month leases.

meowcow

Does anyone know what the June MF and residual are for a 2014 Outback 2.5 Limited 12K/mile 36 months? I'm in Ala. Thanks in advance!

kyfdx

@meowcow said:
Does anyone know what the June MF and residual are for a 2014 Outback 2.5 Limited 12K/mile 36 months? I'm in Ala. Thanks in advance!

.00061 MF and 53% residual.

njsporstsfan

do you have the MF and residual for the 2014 2.5 Premium with 15k a year for 36 months? thanks

Michaell

@njsporstsfan said:
do you have the MF and residual for the 2014 2.5 Premium with 15k a year for 36 months? thanks

.00039 and either 51% (manual) or 53% (all others).

deuce233

Do you have the MF & Residual for Subaru Outback 2.5i premium? 15K/36mo lease in NY. Are the numbers out for the 2015 model as well?

quantum_matrix

@Michaell@Edmunds, can you help to verify July numbers for 2014 Subaru Outback 2.5 premium? I live in Texas. A dealer here quoted me MF 0.00127 and told me that's the best he can do. This is correct? I saw .00039 MF in previous posts. Are these numbers nation wide or differs by region? Thanks!

rossmr

Subaru leases are for the most part Chase. When you see three zeroes on the right of the decimal point that almost certainly means chase is quoting the money factor on a monthly basis vs. yearly for most other lessors. Highly misleading. I was pitched a 3 year Mazda lease (also Chase) with a money factor of .00029 with a residual and a 57% residual 10K per year. You normally multiply the money factor by 2400 to get the APR - in this case, .696%. I pay cash for cars but this seemed like a great deal till they told me what the payment was. Way too high for the residual and the money factor. When I calculated the payment using the .00029 money factor quoted x 12 months it came within a dollar of the payment quoted. That meant an APR of 8.4% - pretty awful for tier one credit and terrible deal when I get less than 1% on savings.

kyfdx

rossmr said:

Subaru leases are for the most part Chase. When you see three zeroes on the right of the decimal point that almost certainly means chase is quoting the money factor on a monthly basis vs. yearly for most other lessors. Highly misleading. I was pitched a 3 year Mazda lease (also Chase) with a money factor of .00029 with a residual and a 57% residual 10K per year. You normally multiply the money factor by 2400 to get the APR - in this case, .696%. I pay cash for cars but this seemed like a great deal till they told me what the payment was. Way too high for the residual and the money factor. When I calculated the payment using the .00029 money factor quoted x 12 months it came within a dollar of the payment quoted. That meant an APR of 8.4% - pretty awful for tier one credit and terrible deal when I get less than 1% on savings.

That's not an accurate representation of how money factors work.

.00029 is equivalent to an APR of 0.696% (with the A in APR meaning annual)

Calculating a lease is very simple. (and, most all banks use money factors that start with a decimal point followed by at least two zeroes).

rossmr

That is what I thought after everything I read. When they quoted me .00029 which as you say equates to .696 APR, I thought I had a great deal. The payment was way higher than what I thought it should be. At .696 APR the interest is negligible and the payment should have been close to the cap cost less residual divided by the lease term - it was much much higher. I had a hunch the money factor quoted was on a monthly basis. I have a degree in Finance and did lease vs buy calculations for a Fortune 100 Company for several years. I did an Internal Rate of Return calculation on the cash flows (negative cash flow is the cap cost, positive cash flows are the lease payments and the residual values), it was around 8.4%. I then used an on line lease calculator, when I used the .00029 money factor the payment and the payment was way way lower than what I was quoted. When I used a money factor of .00348 (.00029*12), the payment came out to within pennies of what I was quoted. The Finance guy said I was wrong, I went over the calculations and he agreed I was right. I paid cash for the car. As you say the money factors will have zeroes to the right of the decimal point - however the difference between 2 and three zeroes is an order of magnitude. Yeah, if everyone plays by the rules, leases can be simple. Money factor and residual are the drivers to comparison shop. If Chase quotes money factor on a monthly basis and doesn't tell you while others quote on an annual basis - unless you check the payment amount using IRR or NPV with EXCEL or an online payment calculator, you can be cheated. I've put in a complaint to CFPB.

The other reinforced lesson - if .00029*2400 = .696 APR from a money center bank is too good to be true, it is.

kyfdx

I'll say it again.. you are mistaken.

And, this is just a supposition on my part... but, you are probably assuming that the only amount you are borrowing is the depreciation portion of the lease. But, in fact, the finance charges apply to an average of the CAP cost and the residual amount.

Example: 36 month lease with CAP cost of $30,000, residual of $15,000 and money factor of .00029.

$30,000 CAP cost
$15,000 Residual

Depreciation = $15,000 / 36 months = $416.66 monthly depreciation
Monthly Finance = ($30K + $15K) X .00029 = $13.05 monthly finance charge

Monthly depreciation plus monthly finance = $429.71 total monthly payment.

Total finance charges = $13.05 X 36 = $469.80.

The average amount subject to finance charges over the 36 months is $22,500 (an average of the CAP cost and the residual) You borrow the CAP cost to start and end up owing the residual, which is of course paid off by returning the vehicle.

So.... you borrow $22,500 (on average) for a period of 3 years and your total finance charges are just $469.80. That's an APR of around 0.7%... no matter how you slice it..

rossmr

KYFDX,
Appreciate your time, patience and expertise.

I would have been happy if the dealer calculated it the way you did. They didn't, this is off the deal sheet:
MSRP 33120
Sale Price 30549
Trade In 4999
Rebate 375
Processing Fee 391
Money Factor .00029
Residual Value 57%
Mileage 10K per year
Term 36 months
Sales Tax 0
Monthly Payment 349

The deal sheet payment is way high by your calculations a shown below.

Cap cost = 30549-4999-375+391 = 25565
Residual = 33120*.57 = 18878
Monthly Depreciation Charge = (25565-18878)/36 = 186
Monthly Finance Charge = (25565+18878)/2*.0029 = 6.44
Total Payment = 186+6 = 194

When I input the deal sheet numbers into the online calculator at lease guide dot com (no spaces) but use a money factor of .00029*12 or .00348 the monthly payment comes to within a couple bucks of what is on the deal sheet. That is why I am convinced Chase is quoting the money factor on a monthly basis vs annual. The .00029 lease factor annual percentage rate equivalent of .696% doesn't pass the smell test. Unless heavily subsidized by the manufacturer, Chase isn't about to loan money out for 3 years at less than one per cent.

Looking forward to your critique.

Michaell

rossmr said:

KYFDX,
Appreciate your time, patience and expertise.

I would have been happy if the dealer calculated it the way you did. They didn't, this is off the deal sheet:
MSRP 33120
Sale Price 30549
Trade In 4999
Rebate 375
Processing Fee 391
Money Factor .00029
Residual Value 57%
Mileage 10K per year
Term 36 months
Sales Tax 0
Monthly Payment 349

The deal sheet payment is way high by your calculations a shown below.

Cap cost = 30549-4999-375+391 = 25565
Residual = 33120*.57 = 18878
Monthly Depreciation Charge = (25565-18878)/36 = 186
Monthly Finance Charge = (25565+18878)/2*.0029 = 6.44
Total Payment = 186+6 = 194

When I input the deal sheet numbers into the online calculator at lease guide dot com (no spaces) but use a money factor of .00029*12 or .00348 the monthly payment comes to within a couple bucks of what is on the deal sheet. That is why I am convinced Chase is quoting the money factor on a monthly basis vs annual. The .00029 lease factor annual percentage rate equivalent of .696% doesn't pass the smell test. Unless heavily subsidized by the manufacturer, Chase isn't about to loan money out for 3 years at less than one per cent.

Looking forward to your critique.

I'll let my co-host address the issues raised in your post, but I can tell you that many manufacturers have lease money factors much lower than those quoted by Subaru/Chase.

Mazda has MF on some models as low as .00001 (.02%); Nissan .00003 (.07%).

How is this any different than the 0% financing offered on a purchase? I assume that the bank is making money somewhere, else they wouldn't offer these rates.

kyfdx

rossmr said:

KYFDX,
Appreciate your time, patience and expertise.

I would have been happy if the dealer calculated it the way you did. They didn't, this is off the deal sheet:
MSRP 33120
Sale Price 30549
Trade In 4999
Rebate 375
Processing Fee 391
Money Factor .00029
Residual Value 57%
Mileage 10K per year
Term 36 months
Sales Tax 0
Monthly Payment 349

The deal sheet payment is way high by your calculations a shown below.

Cap cost = 30549-4999-375+391 = 25565
Residual = 33120*.57 = 18878
Monthly Depreciation Charge = (25565-18878)/36 = 186
Monthly Finance Charge = (25565+18878)/2*.0029 = 6.44
Total Payment = 186+6 = 194

When I input the deal sheet numbers into the online calculator at lease guide dot com (no spaces) but use a money factor of .00029*12 or .00348 the monthly payment comes to within a couple bucks of what is on the deal sheet. That is why I am convinced Chase is quoting the money factor on a monthly basis vs annual. The .00029 lease factor annual percentage rate equivalent of .696% doesn't pass the smell test. Unless heavily subsidized by the manufacturer, Chase isn't about to loan money out for 3 years at less than one per cent.

Looking forward to your critique.

Couple of things..

1) You don't take the sum of CAP + residual and then divide by 2.. The money factor takes that into account already.. (otherwise, you'd multiply by 1200 to get an equivalent APR, not 2400). Otherwise, your calculations are very good. ($12.88 instead of $6.44).

2) Chase isn't in this deal, solely on their own. They are DBA Subaru Finance, and the manufacturer subsidizes those rates. You are correct, Chase wouldn't finance you for 0.7% APR, but Subaru buys their normal rate down.

3) You can calculate a lease payment on a napkin, or a simple Excel spreadsheet. On-line lease calculators will assume and input some standard numbers that may or may not exist on the actual deal. It's a very simple formula

4) Getting back to your example.. I see $4999 for a trade-in, but I don't see any other cash in the deal. 1st payment? Tax? $595 acquisition fee? Title/license fees? Dealer fee? If you start pulling a couple of thousand in upfront costs out of your trade-in value, then the payment is going to jump, accordingly. Also.. your dealer may have marked up that money factor for extra profit and didn't disclose it. Dealers will try to screw you in the finance office on a lease, just like on a purchase.

5) Also... the multiply by 2400 thing isn't a marketing tool.. it's just based on math.
You start with a money factor, and you want to convert it to an APR. The money factor is used to calculate monthly finance charges.. so, if you want an Annual charge, you multiply by 12. Then, APRs are fractions 8% is really .08.. So, to convert the fraction to a percentage, you multiply by 100. Then (and, this refers back to #1), since you added the CAP cost and residual together, but you don't divide by 2 to get the average, multiply by 2.

12 X 100 X 2 = 2400.


To reiterate... just because this dealer tried to put one over on you, doesn't mean the math we give is incorrect. I've negotiated many, many lease deals that agree with my calculations to the penny. Except for one small mistake, you were able to do the same, yourself. It works. Beware of the F&I office..

regards

rossmr

Michaell -
Thanks for your response.

Yes, manufacturers will subsidize lease and loan rates to 'move iron'. You will see these incentives on sites such as Edmunds and the lessors/lenders will make their money "somewhere" through such a subsidy.

The APR or money factor will reflect that subsidy. So the payment calculated on the APR or money factor should = what is on the deal sheet. In the case I am citing the money factor quoted by Chase needs to be multiplied by 12 to yield the quoted monthly payment. I am therefore convinced Chase is quoting a money factor on a monthly basis vs yearly that is industry standard.

You mentioned Mazda as having a low money factor, both Mazda and Subaru use Chase for their leases. Nissan has an in-house financing arm so I can't say without researching their specific leases as to their practices on whether they quote money factor on a monthly or annual basis. In any case, low money factor can be due to manufacturer subsidy. Again, the subsidy will be reflected in the money factor or APR.

PF_Flyer

For current leasing information, go to 2015 Subaru Outback Lease Questions

For current Pricing information, go to 2015 Subaru Outback Prices Paid