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Lease calculation question

jppittsburghjppittsburgh Posts: 3
edited March 2015 in Subaru
I'm new to leasing, and this forum has been so helpful with my research and understanding of the process, great job all!

I do, however, have some questions regarding lease calcualtion basis:
It is my understanding that when calculating the residual value, the MSRP is the basis used and NOT the negotiated price, is this correct?
If so, are we using base MSRP for the vehicle; or MSRP with built in Options; or total MSRP with all options/accessories; or MSRP with all options and add ons?
For example:
Outback Premium base MSRP: 26,995
Same built in options: PZEV, Option package 12, and adding a remote start and some bumber guards: 30,180
Same but also inlcuding non built in options: Roof Carrier, Key fobs, and All weather Matts & cargo tray is: 30,790
Same but including destination charge: 31,640
Your advise is greatly appreciated!

Comments

  • kyfdxkyfdx Posts: 130,940

    I'm new to leasing, and this forum has been so helpful with my research and understanding of the process, great job all!

    I do, however, have some questions regarding lease calcualtion basis:
    It is my understanding that when calculating the residual value, the MSRP is the basis used and NOT the negotiated price, is this correct?
    If so, are we using base MSRP for the vehicle; or MSRP with built in Options; or total MSRP with all options/accessories; or MSRP with all options and add ons?
    For example:
    Outback Premium base MSRP: 26,995
    Same built in options: PZEV, Option package 12, and adding a remote start and some bumber guards: 30,180
    Same but also inlcuding non built in options: Roof Carrier, Key fobs, and All weather Matts & cargo tray is: 30,790
    Same but including destination charge: 31,640
    Your advise is greatly appreciated!

    Use the bottom number on the government Monroney sticker..

    So, including all factory options and destination charge.... not including any dealer additions on a supplementary sticker.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Thank you.
    So my take away is, if I can negotiate the purchase price consistently, it is worth it to scour the area to find the that already has as much as possible that I desire in the car already listed on the Monroney sticker.

    Can someone check my math on two these scenarios?

    Both are assuming $3000 in trade down; fees paid for in cash ; and 0.0006 / 36 mo / 12k / 57% Resid

    1) Assuming if the sticker is 30000 and I have the dealer add on "extras" with a MSRP of 1200 and get a final negotiated price of 29250 - payment (excluding tax) would be: $280.18

    2) Stick includes the 'extras' so is 31200 for a the same final negotiated price of 29250 - payment (excluding tax) payment would be: $261.59

    Over the life of the contract doing so saves meL 18.59 per month, or $669.23 over the life of the lease.

    Is this correct?
    If so thats a savings of more than 50% of the cost of those 'extras'!
  • kyfdxkyfdx Posts: 130,940

    Thank you.
    So my take away is, if I can negotiate the purchase price consistently, it is worth it to scour the area to find the that already has as much as possible that I desire in the car already listed on the Monroney sticker.

    Can someone check my math on two these scenarios?

    Both are assuming $3000 in trade down; fees paid for in cash ; and 0.0006 / 36 mo / 12k / 57% Resid

    1) Assuming if the sticker is 30000 and I have the dealer add on "extras" with a MSRP of 1200 and get a final negotiated price of 29250 - payment (excluding tax) would be: $280.18

    2) Stick includes the 'extras' so is 31200 for a the same final negotiated price of 29250 - payment (excluding tax) payment would be: $261.59

    Over the life of the contract doing so saves meL 18.59 per month, or $669.23 over the life of the lease.

    Is this correct?
    If so thats a savings of more than 50% of the cost of those 'extras'!


    Basically... when leasing, you want to buy a car that has everything you want from the factory/port, with the options included on the government sticker. If you have a 60% residual, you are paying for less than 40% of any option over the lease term.

    By contrast, if the dealer puts $800 of accessories on your car, and you pay $800 more for them, you bear the entire cost over the lease term.

    Subaru does a lot of "port-installed" options... which is nice, because they end up on the government sticker and get residualized. I leased an Impreza sedan that had about $1000 of port-installed options that were a little superflous, but nice.. I would have never paid $1000 for them, but for an extra $300 over the term of my 24 month lease.. no problem.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Thanks.  Makes perfect sense.   Most notably wanting to pay less since at the end of the lease I'm not keeping those floor mats etc 
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