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Comments
But he's right, these are selling well so there are few incentives to make a bargain lease.
Invoice price of $27,118
Residual: 54%
money factor: .00170
$1399 drive off and monthly of $389.55 + tax = $427.53
Almost $80 better than I was quoted 6 weeks ago, so feel like dealers are starting to give a bit. Would greatly appreciate thoughts on this deal, as well as others' experiences. Trying to negotiate down to $500 under invoice, but I'm liking the deal.
John
I'd aim for 10% below the invoice cost of a new one for a program car. Unless it has less than 1000 miles or something.
Subaru's current money factor and residual value for a 36 month lease of a base 2010 Outback 2.5 with 15,000 miles per year are .00155 and 53%, respectively.
The numbers for an otherwise identical 42 month lease are .00160 and 48%.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
A large number of leases have residuals that are unrealistic in todays market, the problem is the lease company is not interested to drop your price, that reflects on actual resale prices - its typically a different pocket if they take a bath when selling at auction.
Don't know who your lease Co is, but I got the same approach with every lease end in the last few years.
State Tax and DMV fees are unavoidable.
Roos tend to hold their resale price well, so check out the local market for used ones with same spec and miles and decide what a known condition car is worth to you.
According to lease - gross capitalized cost $24,000. According to ALG, Subaru residual percentage is 50% = $12,000. Should residual be around $12,000 or so? Please advise.
You accepted the higher residual price to help your monthly payments. The purchase price in your lease is what they will hang out for.
You can offer them less but who knows.....
thanks
ryan
What's the lowest down and lowest monthly they are likely to give on the 2010 3.6R or 3.6R Limited? Thanks.
So the average AWD vehicle is probably priced in the 30s. And I think the Outback is nicer than average, especially a 3.6R Limited.
With even the best residuals in the 50% range, you're talking about $13,500 depreciation in 3 years even at 55% residual. Divide that by 36 months and before we even factor interest or anything else, you're at $375 per month.
Sure you can negotiate a bit, but add taxes and fees, and you're back up to $400. It actually sounds about right to me.
The car is definitely hot. Both November and December sales were more than double the year prior.
Consider a Forester, for 2 reasons:
* prices are a bit lower to begin with
* residuals are fantastic, up to 59-62%
I think you're expectations are way too...low, I guess.
We are talking about a large, loaded, 6 cylinder, AWD, highly sought after vehicle.
For $199 you can lease a small FWD noone wants, sure.
I think they had a Forester lease for $259, but again, with a big down payment, and that's a 2.5X model with plastic wheel covers, no tinted windows, and cloth seats.
I was talking with a dealer about the Nav, just to talk, I would never buy one. I asked the price, he said $2,000, I said: how about $200, that's what a good Garmin costs, then I added: you people need to get real with your crazy prices. Of course, he doesn't own Subaru.
Just let this economic downturn go on for a year or two or three more, then check back on the price of a Forrester and the Nav, I guarantee you it won't be what it is now.
Nissan is coming out with a $400 unit with a small screen, but it'll even include a backup cam. That will be game changing. The multi-thousand dollar Navi packages will soon include stuff like myFord Touch offers. I think we'll soon see much better values./buying
Back to leasing...
what's it worth after you pay off a 5 year loan?
For a Subaru, a lot!
I kept my Forester for 9 years, and still got back $5550 (paid $19.2k new).
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Lease prices vary by manufacturer and model. If people are willing to pay $400 on an Outback 3.6R lease why would Subaru want to let anyone lease one for $200? It's simple supply and demand. The demand is high and supply is low. This isn't a Ford Focus. This is a new style CUV/SUV that won Motortrend SUV of the Year and numerous other awards.
Also, you are saying in other posts that it makes no sense to lease a $29,000 Outback for $400, correct? Wrong. If you were to make a great deal with no money down except first payment you would be lucky to walk out with a 36 month lease for $400. However, to buy that exact same Outback on a 5 year loan at 2.9% and 7% sales tax your payment is well over $550. So by leasing you are saving $150 a month. $150 X 36 months of the lease = $5,400. Do you really think you are going to get $5,400 more than the Outback is worth vs what you still owe if you sold or traded it in after 3 years of your traditional 5 year loan?
Leasing makes perfect financial sense to me. I currently am leasing a 2010 Ford Edge SEL AWD for $297 on a 27 month lease with no money down and also a 2009 Tribeca SE for 36 months $360 with nothing down. Both cars had a "selling price" of just over $28,000. So either way I am saving $200-$290 a month vs buying ON EACH VEHICLE ($400-$580 per month total). Does that make sense?
The difference PLUS the local taxes and State DMV fees get added as the amount to be financed.
Depending on the interest rate and down payment and other "inception" fees its then simple math.
Typically, leases work well for mid to high end price cars and especially those that hold value (they have higher % residual), typically they are not attractive for low cost cars or those that loose a large % in the first 3 years.
I have both leased and financed, currently leasing a Subaru is not very attractive vs purchase at 2.9%, assuming you could find the vehicle you want.
If you like to replace your car every 3 years, leasing can be an excellent deal, averaged over 5-6 years it probably costs more, but you get to experience the new car smell more often.
For what its worth, I haven't leased a car I would like to keep in the last 10 years, so leasing worked for me, hopefully we will like the 3.6R Limited we ordered (to buy) many weeks ago - when we finally get it.
Lease Quote:
Sale Price on this vehicle is$25,698.00.
M.S.R.P. for this vehicle is $27,355.00.
36 months W/ 12K miles per year, $1,167 due at start which includes 1st mo pmnt and dealer fees & NO CASH CAP REDUCTION @ $350.61/mo plus tax
Any thoughts, comparisons. Does this seem appropriate sale price and lease factor/residual applied. Anyone get better?
I always tell the dealer to give me their best sale price and then tell them I am not paying any of their bullcrap fees like doc fee, etc. The only fee that is legit is the acquisition fee which you will never get out of paying.
You truly do not have a clue about leasing or the relationship between a car's MSRP and what it should cost you. You want the quick and dirty? Here it is. So easy a caveman could do it(sorry caveman)
1. Take the MSRP x Residual rate= $Residual Value
2. Subtract Resid Value from the negotiated sale price, that = the amount you are borrowing.
3. Divide the amount borrowed by the term (I use 39mo) = base payment
4. Take (MSRP + Residual Value)x money factor = finance charge
5. Add # 3 and #4 and done you have your payment.
For example I just leased (today) a '10 OB premium w/ CVT & AWP for 39 mo @ 12k miles.
1. MSRP $26790x.51=$13,663
2. $23266-$13663=$9603 (sale price of $23266 reflects a $700 below invoice deal plus additional money down in this case, INVOICE WAS $25,610)
3. 9603/39= $246 per mo base
4. (26790+13663)x.0015= $60 per mo interest
5. BAM! - $306 per month base payment. (add MASS sales tax of .0625)
6. FINAL PAYMENT W/ Tax = $327.
Easy peasy, if you can't do this, you shouldn't lease a car b/c you will get screwed. Trust me, I was a sales manager for a dealership for 2 years and sold cars 3 years before that. Now I'm an accountant and I love to torture salesman!! What goes around comes around.
So if any of you are looking for a good deal, you better look hard b/c up here in the NE, inventory is super low, they have not been able recover the inventory levels since cash for clunkers, but you should expect to pay anywhere from $100 over invoice to $700 below. (that $700 is holdback - whole different discussion). With just fees down and no additional cap cost reduction(down payment) you can expect to pay near $400 per month to lease this car. Good luck people!
:shades:
It was nickr1 who said that:
http://townhall-talk.edmunds.com/direct/view/.ef9ddb4/259#MSG259
I've been trying to convince him that $200/month is way too low.