I'm considering leasing a Subaru 2.5i Wagon, automatic. (MSRP was approx. $27,000). Salesman in Riverhead, Long Island quoted me $376 per month, 48 months, $0 down, 12K miles per year. Could you please let me know if this is a good price, and if not, what should I be trying to negotiate down to?

Rich--I ended up leasing through Manchester Subaru (New Hampshire) for $299 per month; 48 months; 15K per year; no trade in or $$ down, and the cash to close was one payment plus a relatively nominal (less than 200) charge. Good luck.

Hi richw4. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what this vehicle's selling price is.

I just completed a deal on a demo Outback 3.0R. Love the car; hated the experience. Interested in knowing how I did. This is in Canadian dollars.

Demo had 12500kms. (MSRP in Canada for the car is $38995)My deal had a final cost of $36 000 (no other fees). 2.8% financing (non-negotiable) over 4 years with a $14 530 residual ($1007 off normal residual due to kms on car). Total tax rate here is 14%. My monthly payments are $577 all-in. Also got them to install an automatic car starter at no charge. Thanks.

A few important questions I was hoping you might be able to help me with when you have a moment:

1. Can you tell me the lease money factor and residual value percentage for a 2007 Subaru 2.5i Outback Limited Wagon?

2. I am using lease calculators to learn about this whole craziness....and I am a bit confused by the residual value computation. Is the residual value based on the Cap Cost or the Adjusted Cap Cost? It seems to me that, regardless of what one pays for a car, it is worth the same at the end of, say, 4 years and with 40,000 miles on it, no? Therefore, it would seem that the residual value is based on the Cap Cost NOT the adjusted cap. Please confirm or clarify if you would.

3. Finally, it seems that depreciation values set by leasing companies are rather high. If I return a leased car after four years with 40K miles, how am I to believe that the car is, say, 48% depreciated (52% residual value) when the private sale value after four years is more like a 65% residual value? Is this a profit angle or a cover-our-butts strategy to protect the leasing companies from value gaps?

Do you have info on current mfr. (by Chase) lease MF and residuals on '07 Legacy GT Ltd/Outback XT Ltd wagons for 24/36 months and 15000 miles/yr? Is Spec B sedan any different? The region is Southeast (FL), if it matters. Feel free to volunteer any special/sunsidized rate they might have with other term lengths. I appreciate your help in advance.

2012 BMW 328i wagon, manual and sports package. No. sold in the US: 1. Probably.
it's = it is, its = possessive for "it", they're = they are, their = possessive for they, here = not there, hear = receive and interpret sound waves

I'd like to know what you'd consider fair lease terms for an Outback 2.5i Basic 4EAT-S with a sale price of $22,000. I'll be trading in a vehicle with $2,000 of equity in it, and looking for a lease of 3 years/45,000 miles. Thanks.

You're welcome, drewcar, :blush: . Subaru's lease program for this vehicle varies depending upon how long you lease it for and its mileage allowance. For now I will assume that you are interested in a 48 month lease with 10,000 miles per year. Let me know if you want something different. Subaru's current buy rate lease money factor and residual value for a 48 month lease of a 2007 Outback 2.5i Limited Wagon with 10,000 miles per year are .00270 and 50%, respectively.

Vehicles' residual values are always based upon a percentage of their full MSRPs, including the destination charge and any options that can be residualized. So you are right, regardless of how much one pays for their vehicle, it is only worth a specific amount at the end of their lease. Vehicles' residual values are based upon a realistic assessment of what banks believe vehicles will be worth after a specific period of time. Many banks actually artificially inflate vehicles' residual values, making them unrealistically high so that they can provide consumers with attractive lease payments. Manufacturers like BMW do this sort of thing all the time. Most banks don't set vehicles' residuals too low though. There is a great article on how to calculate lease payments here at Edmunds.com. You definitely should check it out: Calculate Your Own Lease Payment.

Hi dino001. Subaru Auto Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2007 Subaru Legacy GT Limited Wagon with 15,000 miles per year are .00270 and 65%, respectively. The numbers for an otherwise identical 36 month lease are .00240 and 53%. Subaru Auto Finance's buy rate lease money factor and residual value for a 24 month lease of a 2007 Subaru Outback XT Limited Wagon with 15,000 miles per year are .00270 and 63%. The numbers for an otherwise identical 36 month lease are .00240 and 54%. The Spec B's lease program is different, its residual values are not nearly as attractive. Its 24 month, 15k numbers are .00270 / 57%. Its 36 month, 15k numbers are .00240 / 47%.

Greetings rcurriejr. I would be happy to estimate what this vehicle's lease payment would be if you were to lease it through Subaru's captive finance company right now. In order for me to do so I need you to provide me with its full MSRP. Let me know and I'll crunch some numbers for you.

Hi Mr. Car_Man, I am looking to lease a 2007 Subaru Legacy Outback 2.5i Wagon. The dealer quoted me a sale price of $22,694. The total price including TTL and doc fee is $23,842.82. The MSRP of the car is $25,403. I am looking to lease it for either 36 or 48 months with 15,000 miles per year. Do you know how much my monthly payment would be assuming I have good credit and I am going through Subaru Financing Company? Thanking you in advance. Tommy.

I am NOT a Subie Newbie, and carman has helped me in the past. Now my wife has had it with our '96 Acura RL, and wants a second subie.

CarMan do you know the current #'s (money factor, incentives, etc) on the 2007 Outback 2.5i? I have tried to get into one in the past, but could never get a favorable lease. I am seeing some nice looking monthly numbers being advertised out here (NJ), so I am hoping we can take the leap, and am starting to e-mail dealers in a 60 mile radius.

Hi bpac02864. It's tough for me to say how much the Outback that you want will cost to lease without knowing its MSRP and selling price. I would be happy to use Subaru's current lease program to estimate this vehicle's monthly payment for you if you let me know what these numbers are.

Hello Tommy. Let's work up a payment on this vehicle for you and see what we come up with. According to my calculations, if you were to lease a 2007 Subaru Outback 2.5i Wagon with an MSRP of $25,403 and a capitalized cost of $23,843 through Subaru's captive finance company right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $353. The numbers for an otherwise identical 48 month lease are $333.

Hey ajfitzer. The money factor and residual value that you were quoted for the Outback that you are interested in are right in line with its published lease program. This is always a good sign. It is difficult for me to give you my opinion on this selling price without knowing what this vehicle's full MSRP is. Let me know and I'll tell you what I think.

We are looking at the 2007 Outback Wagon 2.5 XT Ltd with Nav and 2007 Outback Wagon 3.0 R LL Bean with Nav. Are current money factors and residual values available, Car_man? Thank you!

I've never leased a car, and when we buy a car we usually keep it for 8-10 years. But we may have a situation where a lease makes sense. Thing is, I don't understand how a lease with option-to-own program works out, numbers-wise. My question is ... is there a significant overall price difference between buying, say, a Subaru Outback i outright vs. leasing one and then in 42 months (or whatever) choosing at that time to purchase the vehicle if we like it? We usually only drive about 7K miles a year. Any comments? Thank you!

Car Man - I would like to get your opinion on a lease for a 2007 2.5i basic - I am in MO MSPR was $23,950 (might as well say 24k) and i would like to know the lease amounts for a 36 and 42 month, 12k miles per year with 0 down. I am not sure i understand what the Redidual & MFactor amounts are that you keep mentioning in previous posts.

Hi comfortzones. These vehicles' lease programs vary by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if these terms are correct. Subaru Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Outback Wagon 2.5 XT with navigation and 15,000 miles per year are .00220 and 53%, respectively. The numbers for an otherwise identical lease of a 2007 Subaru Outback Wagon 3.0 R LL Bean are .00240 and 57%. When negotiating your lease on either of these vehicles, make sure to take advantage of the $750 lease cash that is currently available on them. This incentive will help you to negotiate an attractive capitalized cost.

Hi denver5357. All leases provide lessees with the option to purchase their vehicles for a predetermined price at lease-end. Vehicles' end of term purchase option prices are stated right on their lease contracts. There's nothing wrong with leasing an Outback and then purchasing it at the end of your lease if you decide that you like it. Doing so won't cost you a lot more than just financing the Outback that you want. Subaru's 42 month lease money factors for the 2007 Outback are between .00200 and .00250, which is equivalent to interest rates of around 4.8% to 6.0%. So it's lease program isn't amazing, but it isn't terrible either. There actually is an advantage to leasing. If you decide that you don't like your Outback, or if it has a ton of mechanical problems, or if it is involved in an accident that would diminish its future resale value you will be able to just walk away from it at the end of your lease. If it has been good to you and you decide that you like it then you can pay cash for or finance its purchase option price.

Hi 232499. It sounds like you are new to leasing. If so, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

I would be happy to estimate what this car's lease payment should be like right now for you, but in order for me to do so I need you to provide me with its selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You may be able to get an idea of how much you should pay for this vehicle right now by visiting the following discussion: "Subaru Outback: Prices Paid & Buying Experience". Let me know what selling price you come up with and I'll crunch some numbers for you.

I'm writing from near Detroit. I've leased several vehicles but this would be my first Subaru. Would you have a look at these deals and let me know what you think? They're both for the same car, a 2007 Outback 2.5i manual transmission; MSRP 25,942, 12K miles a year:

2-year option: 24 months with 12k a yr with a total due at signing of $610.52 + plate; payment would be $290.72 with tax

24 months 12k residual is .67 and money factor is .00200 cap cost is $21,400

3-year option: 36 months with 12k with a total due at signing of $608.90 + plate; payment would be $289.10 with tax

36 months 12k residual is .59 and money factor is .00240 cap cost is $21,200

What Lease Payment do you get with the following terms: MSRP: 28,346 Sales Price: 25,453 (already includes incentives) Residual: 15,590.30 (55%) Money factor: .0026 Acquisition Fee: 595 First mos and security deposit waived 42 mos. 10,000 per year. New Jersey

Option A We were going to strip out the tax and title and pay that outright (1782 for tax and 371 for title and registration) plus zero additional down.

Hi bajafresh. The money factors and residual values that you were quoted are right in line with Subaru Finance's current program for the model that you are interested in. This is a good thing. You never mentioned the selling price of the car that you are interested in leasing though. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what the selling price is.

Hi penpalev. The money factor and residual value that you were quoted are right in line with Subaru Finance's program for this vehicle. That's a good thing. Using them, an MSRP of $28,346, and a selling price of $25,453 I estimate that the 42 month, 10,000 mile per year, your zero down, pre-tax monthly payment for the 2007 Subaru Outback 2.5i Limited Wagon that you are interested in should be around $342.

The base version of this vehicle has a spread of around $1,700 between its MSRP and its dealer invoice price. Add the $750 cash incentive to that and we have a total of around $2,450 to play with. You were quoted nearly a $2,900 discount on this vehicle, which looks like a very good deal to me. If you like it, I personally don't see any reason not to do this deal.

## Comments

4Thanks.

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1Demo had 12500kms. (MSRP in Canada for the car is $38995)My deal had a final cost of $36 000 (no other fees). 2.8% financing (non-negotiable) over 4 years with a $14 530 residual ($1007 off normal residual due to kms on car). Total tax rate here is 14%. My monthly payments are $577 all-in. Also got them to install an automatic car starter at no charge. Thanks.

1A few important questions I was hoping you might be able to help me with when you have a moment:

1. Can you tell me the lease money factor and residual value percentage for a 2007 Subaru 2.5i Outback Limited Wagon?

2. I am using lease calculators to learn about this whole craziness....and I am a bit confused by the residual value computation. Is the residual value based on the Cap Cost or the Adjusted Cap Cost? It seems to me that, regardless of what one pays for a car, it is worth the same at the end of, say, 4 years and with 40,000 miles on it, no? Therefore, it would seem that the residual value is based on the Cap Cost NOT the adjusted cap. Please confirm or clarify if you would.

3. Finally, it seems that depreciation values set by leasing companies are rather high. If I return a leased car after four years with 40K miles, how am I to believe that the car is, say, 48% depreciated (52% residual value) when the private sale value after four years is more like a 65% residual value? Is this a profit angle or a cover-our-butts strategy to protect the leasing companies from value gaps?

Thanks for the help.

And again, thanks for being there.

4,278Do you have info on current mfr. (by Chase) lease MF and residuals on '07 Legacy GT Ltd/Outback XT Ltd wagons for 24/36 months and 15000 miles/yr? Is Spec B sedan any different? The region is Southeast (FL), if it matters. Feel free to volunteer any special/sunsidized rate they might have with other term lengths. I appreciate your help in advance.

2012 BMW 328i wagon, manual and sports package. No. sold in the US: 1. Probably.

it's = it is, its = possessive for "it", they're = they are, their = possessive for they, here = not there, hear = receive and interpret sound waves

1I'd like to know what you'd consider fair lease terms for an Outback 2.5i Basic 4EAT-S with a sale price of $22,000. I'll be trading in a vehicle with $2,000 of equity in it, and looking for a lease of 3 years/45,000 miles. Thanks.

38,515Vehicles' residual values are always based upon a percentage of their full MSRPs, including the destination charge and any options that can be residualized. So you are right, regardless of how much one pays for their vehicle, it is only worth a specific amount at the end of their lease. Vehicles' residual values are based upon a realistic assessment of what banks believe vehicles will be worth after a specific period of time. Many banks actually artificially inflate vehicles' residual values, making them unrealistically high so that they can provide consumers with attractive lease payments. Manufacturers like BMW do this sort of thing all the time. Most banks don't set vehicles' residuals too low though. There is a great article on how to calculate lease payments here at Edmunds.com. You definitely should check it out: Calculate Your Own Lease Payment.

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1I see the Subaru has a special for $239 per month on the 2.5I Basic.

What are my chances in getting a 2.5I Automatic. $2k down 42 months 15k per year at $290 per month In RI.

Thanks

630I am NOT a Subie Newbie, and carman has helped me in the past. Now my wife has had it with our '96 Acura RL, and wants a second subie.

CarMan do you know the current #'s (money factor, incentives, etc) on the 2007 Outback 2.5i? I have tried to get into one in the past, but could never get a favorable lease. I am seeing some nice looking monthly numbers being advertised out here (NJ), so I am hoping we can take the leap, and am starting to e-mail dealers in a 60 mile radius.

Loving my 2006 Tribeca!

AJFITZ

30Here is what I was just offered, and I am HOPING that I might finally get in to a new Outback (although my Tribeca is still very very nice)......

07' Outback Wagon 2.5i 4Cyl

Selling Price: $22,627

Redidual 55%

MFactor .00210

42 month lease with 12K miles a year $314/month which includes taxes, and $626.51 down (includes first months, registration fees, tags, etc).

How does this one sound??

ajfitz

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343191MSPR was $23,950 (might as well say 24k) and i would like to know the lease amounts for a 36 and 42 month, 12k miles per year with 0 down. I am not sure i understand what the Redidual & MFactor amounts are that you keep mentioning in previous posts.

thanks for any help you can provide,

232499

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38,515I would be happy to estimate what this car's lease payment should be like right now for you, but in order for me to do so I need you to provide me with its selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You may be able to get an idea of how much you should pay for this vehicle right now by visiting the following discussion: "Subaru Outback: Prices Paid & Buying Experience". Let me know what selling price you come up with and I'll crunch some numbers for you.

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11I'm writing from near Detroit. I've leased several vehicles but this would be my first Subaru. Would you have a look at these deals and let me know what you think? They're both for the same car, a 2007 Outback 2.5i manual transmission; MSRP 25,942, 12K miles a year:

2-year option:

24 months with 12k a yr with a total due at signing of $610.52 + plate; payment would be $290.72 with tax

24 months 12k residual is .67 and money factor is .00200 cap cost is $21,400

3-year option:

36 months with 12k with a total due at signing of $608.90 + plate; payment would be $289.10 with tax

36 months 12k residual is .59 and money factor is .00240 cap cost is $21,200

Thanks in advance!

1What Lease Payment do you get with the following terms:

MSRP: 28,346

Sales Price: 25,453 (already includes incentives)

Residual: 15,590.30 (55%)

Money factor: .0026

Acquisition Fee: 595

First mos and security deposit waived

42 mos.

10,000 per year.

New Jersey

Option A

We were going to strip out the tax and title and pay that outright (1782 for tax and 371 for title and registration) plus zero additional down.

Option B

TTR + 1,000 down

Are these good deals? Am I missing something?

Thanks in advance

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38,515The base version of this vehicle has a spread of around $1,700 between its MSRP and its dealer invoice price. Add the $750 cash incentive to that and we have a total of around $2,450 to play with. You were quoted nearly a $2,900 discount on this vehicle, which looks like a very good deal to me. If you like it, I personally don't see any reason not to do this deal.

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10MSRP: 28,138 (does not 1000 LL Bean rebate, but residual worked off of 28,138)

Cap Cost: 23,490 (includes 750 lease cash and 1000 LL Bean Rebate)

Residual: 67% (12k/yr)

MF: .00265

24 month lease

ACQ Fee: 595

-Dan

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1The terms for a lease I'm looking at are:

Term: 42 mo

MF: .0025

Residual: 51% (13029) 15K miles/yr

Selling Price: $23640

MSRP: $25549

I'm looking at a $265/mo (or $298/mo with taxes ect rolled in). This includes a trade-in of $2100. Price includes incentives.

From what I have read, this sounds a like good deal? Any comments?

Thanks.