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2013 and earlier-Subaru Legacy Lease Questions
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Car_man
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Prices Paid Forum
Invoice: $28,791
VIP pricing is invoice minus any incentives/discounts (looks like $750 customer cash is available).
I too am ahead on my '04 Forester XT: the lease payoff is lower than the "average" trade-in figures. Selling a leased car at home isn't usually ideal, will have to see if CarMax has any interest in it if the Subie dealer doesn't.
thanks,
-Brian
Car_man
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Prices Paid Forum
I see that you are considering making a $2,000 down payment on your lease. I always advise consumers not to make down payments when leasing. I do so because if their leased vehicle is totaled in an accident or stolen and never recovered, their down payment essentially disappears. Consumers can and should lease any vehicle that they want without making any sort of capitalized cost reduction. All you will have to pay at lease signing are your vehicle's first month's payment, security deposit, $595 acquisition fee, and any required state taxes or fees at signing.
I would be happy to give you my opinion of the deal that you are getting, but you never mentioned this car's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without knowing what the selling price is, it's difficult to say how good a deal this is. Subaru is currently providing $750 customer cash on this model, but I do not believe that this cash is compatible with its lease program.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Can you help with some lease numbers for me as this is my first lease:
2007 Legacy 2.5i Special Edition Sedan Manual
Selling price 17,999 + options of $927 = selling price 18926. MSRP of the vehicle is 22094 (incl. options & delivery)
I'm looking at a 39 month 15K lease using the Subaru captive finance company / Sign & Drive promotion. I think the residual is 52% and MF is .00230, but can you double check those for me?
This lease is for PA which has a 6% sales tax and a 3% lease tax.
Using an excel lease calculator, I get the following numbers using the following assumptions:
Acquisition fee: 595
Tax 9% (6% + 3%)
Subaru Lease cash (which IS compatible with special lease promotion: (- 750)
Dealer CAP reduction under Subaru Sign & Drive Lease: (- 1057)
Total depreciation 7928.46
Monthly Depreciation 203.29
Monthly Finance fee 71.08
Monthly payment 274.38
The dealership claims that they are using the same MF and residual, but are coming up with a payment of 287 per month. I realize that it's not a lot of difference, but I'm trying to figure out where the difference comes from.
Also, how is end of lease buy-out pricing obtained? Is it the cap cost / sale price minus the total depreciation (in this case 18926 - 7928 = 10998)?
Thanks for your help!
2007 Legacy gt ltd sedan. , with spoiler--xm radio--subwoofer;
24mos 15k/year.$551.95 monthly(including tax and fees)
$1557.89 out of pocket
36mos. 15k/year. $495.80 monthly(including tax and fees
$1501.74 out of pocket
This for MSRP of $31,449 and Invoice of $29,101
These numbers seem to be way out of whack with what Edmunds lists as current Subaru deals. Or am I missing something??
My 2003 special edition is off lease on the 21st. I'm looking into getting another Legacy but can't decide if the extra cost of the GT with the premium fuel, extra insurance, is worth it. I'll probably stay with the special edition.
Two questions: is it worth trying to find an 06 GT and see if I can get it at a bigger discount than the 07? Does the fact that it's already a year old effect the price since it's already depreciated?
(ok three questions...) I see that many people say that they want to lease with no money down or even that it's not good to put money down...is that the best way? I had to put down about 3 grand for the last one. I see though that there is a special program on now for new cars, and wonder if I can get a good deal on one since I also get the loyalty 1% discount. The only problem is that I'm 20,000km over on my mileage which is about 2 grand I'll have to pay unless I can get them to absorb it. What is the best way to proceed. I have to do this soon.
thanks,
cdndriver. Oh, I live in Toronto, Canada
Let's take a look at this deal. You were quoted a discount of $3,168 on a 2007 Subaru Legacy 2.5i Special Edition Sedan. This vehicle only has a spread of a little over $1,200 between its full MSRP and dealer invoice price. Add to that the $750 lease cash that is currently available on this model and we come up with a total of around $2,000 to play with. As you can see, the selling price that you were quoted for this vehicle is excellent. The money factor and residual value that you were quoted for this car are right on the money as well. If you like it, I personally don't see any reason not to pull the trigger on this deal.
Vehicles' residual values are base upon a percentage of their full MSRPs including the destination charge and the MSRPs of any options that can be residualized.
Car_man
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Prices Paid Forum
It appears they are using a .003 MF and 49% residual..are those the right values?
Thanks
2007 Legacy 2.5i special edition MSRP $22,420 42 months @ $293.58 for 42 months $2,200 down residual $11,658.40. I don't remember the exact selling price it is around #20,4xx. The advertised price is $20,999. The interest factor is .00260 & residual rate is 52%. Is this a fair price or should I walk? Thank you
Car Man please advise on my cost..marks price is better than the one I have. I am going to the dealer on Wed..can you help me? TIA
Thanks again!
ajfitz
Car_man
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Prices Paid Forum
TIA
You seem to have a good grasp of what information to gather about the vehicle that you want to lease. The two most important numbers to focus on are its selling price and its money factor. You were quoted around a $2,000 discount on this car. When the $750 lease cash that is currently available on it is backed out, this is a $1,250 discount. A base 2007 Legacy has a spread of around $1,150 between its full MSRP and dealer invoice price, so the price that you were quoted looks good to me. The money factor looks a little high though. The last time I saw Subaru's buy rate lease money factor and residual value for a 42 month lease of a 2007 Subaru Legacy 2.5i Special Edition Sedan they were .00210 and 49% with 15,000 miles per year.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
I'm new to these forums. What a nice resource! I'm impressed with the amount of information that is available here.
I'm looking at a leasing a 2007 Legacy Special Edition 2.5i sedan within about 3 months. I'm looking at either a 24 or 36 month lease with 12K per year. Here are the details on the specific deal I'm looking at:
MSRP $23,430 (options are auto. transmission, armrest extension, auto dimming mirror/compass, all weather mats, and spoiler)
My questions are:
1. What are the current residuals for 24 and 36 months?
2. What are the current money factors used for 24 and 36 months?
3. What should be a reasonable negotiated discount? (I haven't yet made a visit to my salesperson.) Carsdirect.com is saying about 1,100-1,200 off of msrp for my area (western NY).
4. Are there any lease cash or lease rebates?
5. Do you anticipate any changes in Subaru's programs over the course of the next 3 months?
Thanks for your help with these questions.
Joe
If I was in the market for this car, I personally would shoot for a selling price that's $500 or so over dealer invoice before the subtraction of the $750 incentive, which would put you at around $250 under invoice after the cash is taken into account. Make sure to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Subaru Legacy: Prices Paid & Buying Experience".
Subaru's current cash incentives and lease program is scheduled to run through April 2nd. Unfortunately, it is difficult to say what its new April program will be like at this point.
Car_man
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Prices Paid Forum
36 months, 15K Miles/Per year:
318/Month
$680 Due at signing + Reg fees
24 Months:
$300/Month
$680 Due at Signing + DMV Fees
Dealer also stated he would extend warranty if we took 36 months.
I'm getting this through the "VIP" program discount I get through work...
Sounds like a fair deal?
Due at signing:
$595 Bank fee
$90 document fee
DMV Fees
36 Months
15K Miles/Year
Leasecare Warranty
$279/Month.
Outrageous......I told dealer (kidding) that I would take 2 at that price!
2.5i Limited Sedan
The Price I Received $24,065
Residual Value 68%
Money Factor - Dealer told me 5% and change
24 Months
Sales Tax 7%
12,000 miles
Lease Price with tax $337.15
No money down, but they want me to pay $695 plus registration fee. What is the $695 for?
What do you think?
The dealer told me that it would cost more for me to lease at 36 months because of the program.
I just leased an 07 Legacy special edition w/automatic for $274 with $0 down and paid about $210 for registration and fees at signing. 42months/12k miles per year.
With tax the payment comes out to $298 I believe. The car is only about two months old. I just checked the buyout price and saw that it was $17,800. When I do the calculations, buying the car with about $3000 down would make my payment very similar to the lease. Is it worth pursuing or should I wait to the end of the lease?
I'm planning on leasing a 2007 Subaru Legacy 2.5i SE Sedan. However I'm not sure if me being unemployed (since I am a full time medical student) would affect my chances of getting a good deal on a lease. I have been in contact with Lynnes Subaru in Northern NJ and I have been told that the lease rates for the Legacy 2.5 SE and GT would be the following: $275/month sign and drive for 36 months 12K miles/yr or $179/month with $2594 due at signing for 36 months 12K miles/yr both for Tier 1 and 2 credit. I jst checked my 3-bureau credit report today and my FICO score ranges from 680-699.
I would really appreciate it if you can give me some rough numbers as to what i would most likely qualify for considering my credit score and being a full time student.
Thanks.
Car_man
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Prices Paid Forum
What is this car's full MSRP? If you let me know I can see how much of a discount you are being given on it and give you my opinion of this deal.
Subaru Finance charges a $595 acquisition fee on every vehicle that it leases. Individual dealers do not have the authority to waive this charge, but they do often have the ability to pad it to try to hide extra profit in deals. It looks like the dealer that you are working with is trying to mark-up Subaru's base acquisition fee by $100.
Subaru Finance's current buy rate lease money factor for a 24 month lease of a 2007 Legacy 2.5i Limited Sedan is .00265, which is equivalent to an interest rate of around 6.36%.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
If you are able to lease this car, you really need to find out what its full MSRP and selling price are before finalizing your deal. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. It is difficult to tell how good a deal you are getting on your Legacy without knowing what these numbers are.
Once you have a selling price that you are comfortable with, make sure that the dealer that gives it to you uses Subaru Finance's buy rate lease money factor to calculate your monthly payment. Its current buy rate for a 36 month lease of a 2007 Legacy 2.5i SE Sedan is .00230.
Car_man
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Prices Paid Forum
Thanks for sharing experience.
Regards,
Annie on Nantucket
Do you know what the July residual value and money factor are on a 2008 Legacy GT and Legacy GT spec.b. I was recently quoted 56% and .0026 (GT) and 50% and .0026 (spec.b). These were for 36 months and 10,000 miles a year. Do these sound right?
MF: .00185 (4.44%)
RESIDUAL: 49%
This is for 36 months / 15,000 miles
Dealer #1:
Residual: 49%
Money Factor: .00185
Dealer #2:
Residual: 54%
Money Factor: .00310
As you can see, there is quite a big difference in both numbers. I am planning on test driving the vehicle tomorrow at a different dealership and seeing what they can do. If they won't match the numbers then I'm off to Dealer #1 to make the purchase/lease.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
First let me say what a great resource this board and site are! I'm looking to lease my first car and this site has been invaluable in teaching me the benefits of leasing a Legacy.
I'm currently looking at a:
2008 Subaru Legacy GT
-Auto Trans
-Spoiler
-XM Radio
-Armrest extenders
-Splash Guards, etc (Only thing the dealership has so I'll deal with it)
I was quoted a "sticker price" of ~$31k from Doug Smith Subaru in American Fork, UT from Dempfey Bowling.
For a 36month/15k lease the numbers were:
Residual: 54%
Money Factor: .00260
For a 36month/12k lease:
Residual: 55%
Money Factor: .00260
We've got about 10k to throw down, but ideally we want to throw down 4k at signing and then try to keep the monthly payments including tax below $400 (allowing our first 15 months to be "paid for" with the remaining 6k, while building up for the remaining 21 months)
Is this a good deal? I don't really have my heart set on this car, really I'd be happy with a 2.5i Limited Edition as the major factors in getting a car are that it have: AWD, Leather, and be Automatic Transmission. For me a lease is ideal just because I live in Hawaii but will be attending school on the mainland for at least the next 3 years, but I have no idea if Ill be returning to the island or sticking on the mainland (and shipping a car here is a pain!)
Thanks for your time!
In your post you mentioned that this car has a sticker price of around $31,000, but you never mentioned its selling price. Remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. Make sure that you are being given a discount on this car. You should stop by the "Subaru Legacy Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar vehicles lately.
Subaru's September buy rate lease money factor and residual value for a 36 month lease of a 2008 Legacy GT Sedan Limited with 12,000 miles per year are .00240 and 54%, respectively.
Let me know if you have any other questions.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Thanks
Can anyone tell me the current (Sept) Money Factor and residual on a 2008 Legacy 2.5i Special Edition (auto) 24 Months, 12k miles?
Central New York area...
Thanks in Advance!!
Great Forum!
24 mon lease 10k miles, 339.5 with tax in payment. Total out of pocket 1189 includes first month, mv, doc fee, etc? New Jersey
Am I the only one checking this forum or is nobody else buying this car?
Thanks.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum