Mitsubishi Outlander Lease Questions

kyfdx · November 2006

Ask your Mitsubishi Outlander lease questions here!

bimmer_girl · January 2007

I am in the process of leasing a 2007 outlander XLS with navigation, sun&sound, and luxury packages for $2000 down and $280/month. I need to know if this is a good deal or not. My salesperson is extremely nice and patient, but this may be a stretch for him so I don't know if i can go lower. What do you think?
Gilman Mitsubishi
Houston, Texas 77024??

chwtom · January 2007

how long is the lease, and how many miles will you be allowed?

at first glance, it looks like a good deal, though most people here recommend not putting money down on a lease. if your car is totaled or stolen, you lose that money. plus, you could put that 2000 in a savings account and collect interest on it.

if you are in a 36 month lease, rolling that 2000 into the lease would increase your payments by about 60 dollars or so.

bimmer_girl · January 2007

Yeah I know...He suckered me into coming to the lot with $1500 down and $255/mo fully loaded. However, that was for a 60 MONTH LEASE...whew. I don't think so! :mad: So eventually he said $1500 down and $295/mo for a 36 mo lease. Is there anything I can do to get this down further? I'm desperate, I have to have this car, it's so tricked out! Thanks in advance, much appreciated.

bimmer_girl · January 2007

It is also invoice price, at $27277 according to Edmunds.

bimmer_girl · January 2007

I also qualify for their $500 discount for recent graduates, so that would make the down payment $1000

mictra · January 2007

Can anybody tell me how to figure out the taxes on a lease. I thought you can do it one of two ways:

1.To pay upfront: Take the quoted monthly payment and multiply it by the term then multiply the tax.
2. To include it in the payment: Take the quoted monthly payment and multiply the local tax rate.

Am I correct? My dealer said if you elect to put the tax in the payment there is a finance charge? Also, what are some of the lease deals that have been out there.

bimmer_girl · January 2007

I believe you can take the full price and multiply it by the tax rate, then pay up front or divide by the full term and add that amount to your monthly payment.

good lord, i wish someone would answer MY question!

dodo2 · January 2007

Guys and gals, there are lots of car lease calculators on the Internet. Just do a Google search. You need to know the negotiated price, the length of the lease, the down payment, lease rate, residual value, the local tax. Plug the numbers in and you get the monthly lease rate with or without tax. Have your homework done before you walk into the dealership. When you negotiate the monthly payment, you give the salesman the chance to screw you big time. Few bucks on the monthly payment - which you may give away easily, translates in hundreds of dollars for the dealership over the time of the lease. Always negotiate the vehicle price starting from the invoice price and then calculate the monthly payments.

mrmister2000 · January 2007

Hiya Bimmer Girl,

First off, let me say that I am thinking about leasing the exact same model/package as you... an XLS with the Nav, Luxury, and Sun and Sound package. One thing I didn't seem to see in your post was mention of whether it was a 2WD or 4WD? I'm planning on the 4WD... just for the piece of mind.

I have been trying to estimate lease payments on the above configuration since the very day that Mitsu released the official pricing list, but this had proved difficult... as even Mitsu, itself, had been unable to provide me with info like residual value and such. "Residual what?" asked one Mistu customer service rep as I talked to her about it over the phone. She didn't even know what the term had meant and had no idea who else she could possibly transfer me to in order to answer the question. Needless to say, I had to make some initial guesses and assumptions... but the majority of the leasing calculators/estimators that I tried using these "guesses" all seemed to point me in the direction of payments that were between $375-$400 per month, when paired with a down payment similar to yours and over around a 3-year lease term. But... continue to keep in mind, however, that those estimates were based on what I could only have guessed whould have been the leasing % rate, residual, and negotiated vehicle price back when I had been trying to estimate the lease payments. I have not yet gone to a Mitsu dealership in person to discuss leasing costs, as I am still maybe 4 months away from actually leasing and I do not want to "jump the gun" and start leasing one before then.

Getting back to the point, the fact that they offered you an XLS with all three of those option packages for less than $300/month with $2,000 down looks promising to me... especially since, again, my own estimates had placed the monthly payments (under conditions probably similar to yours) closer to the $400/month mark. If you were in fact quoted the above for a 4WD and not a 2WD then I would definately take it into consideration... but of course there might still be a better deal to be found. All I know is that I was quite surprised when I saw your post and the amount per month that they were asking.

One thing though... as others have said, I don't recommend a $2,000 down payment... you're better off making the smallest down payment that is allowed. This might be $1,000, or it might be less and this is due to the fact that if something ever happens to your Outlander and it gets totalled, the insurance company will only pay for the remaining balance of the truck...whatever that "remaining" balance is...which means that essentially whatever $$ amount you had put towards the down payment is gone forever.

What are some other's opinions on this leasing offer? I'm very excited and curious now! :P

dodo2 · January 2007

What are the current lease rates?

bimmer_girl · January 2007

Thanks so much for the reply mrmister, In fact the down payment was $1500 and I apply for the Education Edge discount, so I only have to pay $1000 down, and $295/month. It is a 2wd, as I live in Houston and have no need for a 4wd. I am pretty sure I'm getting a good deal, because I've done the calculators myself but they ALWAYS overestimate the monthly payment. I think I'm going to get this car Saturday. Probably have to order it as no one seems to have the navi equipped models on their lot, and especially not in black/black.

Excited!!!

mrmister2000 · January 2007

I'm not sure what the current lease rates are, either. Since the info has been hard to come by and the only leasing offer that I am aware of is the one on the Mitsu site for an ES model, I have long been using that as a starting point to try and estimate what my own leasing payments would be (using the difference in MSRP between that model and the MSRP of the model/options that I would like to have). Doing this acheived results similar to those I had previously come to when plugging random, estimated numbers into various 3rd party leasing calculators.

Since I pretty much want the same vehicle config as Bimmergirl, only in 4WD instead of 2WD, I suppose that means that whatever the current leasing rates, I could expect to see an additional $50 or so per month added to my payment, in addition to what had been quoted to Bimmergirl.

It's still less of a monthly payment than I had been expecting, so I still see it as promising.

bimmer_girl · January 2007

Now, the dealer i have been working with this on informed me today that the payment would now be "over $300/mo" because that offer was for LAST saturday. Naturally, i said this was [non-permissible content removed] and i would be taking my business elsewhere. Today, I contacted 3 other Mitsu dealers in my area (houston is a big city) and only one has said that he thinks $297 is an achievable goal with rebates and incentives right now, and with $1500 down. Now if i could just get my hands on a black on black within 500 miles but they are just too hard to come by. Might have to be white.

bimmer_girl · January 2007

An update. Tomorrow I am leasing with a dealer here in my area on a black on black FULLY LOADED XLS Outlander, Sun & Sound - Luxury - Navigation, for invoice price...36 months, $1500 down, $289/month!

Hot damn. I'm excited.

mrmister2000 · January 2007

Congrats! It sounds like the other dealership started to get wind of the fact that you "really, really" wanted this truck and had thought that they could get away with jacking up the price. Way to stick to your guns!

mrmister2000 · January 2007

I had forgot to ask this earlier. I'm pretty sure that I already know the answer to this is, but I just figured that I'd ask to be sure. The $289/month price is the leasing price BEFORE adding for sales taxes, right? That's what I'm thinking... so after having added sales taxes in to the monthly cost it then becomes somewhere around $307/month, or so, right? That is, unless you are electing to pay the full sales tax up front, in which case the monthly cost really would be $289/month?

bimmer_girl · January 2007

Exactly. I think I'm going to pay the tax up front because eventually I'm going to medical school and I want to keep my monthly payment low during that time. So while I'm working full time, I'm gonna pay off the down pmt and tax up front. Wish me luck!!

mrmister2000 · January 2007

I'm wondering how if paying the entire tax up-front would affect a situation such as the vehicle being totaled while still under lease? (I know, not exactly something that is fun to think about, but something that is still useful to know.)

What I mean is, is it a bad idea to pay the entire sales tax amount up front for the same reason that it is bad to make a larger down payment than is necessary up front? If the vehicle gets totalled and the entire tax amount had been paid up-front, is the person entitled to a refund of the taxes paid for the months that the vehicle was no longer in the person's possession due to it having been totalled (and if so, does the person have to wait all the way until tax time at the end of the year to get this tax money back?)... or does having paid the entire tax amount up-front leave the person at a loss similar as to like with a larger down payment having been made, in that the insurance company covers whatever balance is still owed and whatever costs had been paid by the lessee up that point never gets recovered?

Does anyone here with leasing experience possibly know the answer to this rather confusing question? Thanks in advance!

ryce69 · January 2007

Different states,counties and cities compute sales tax differently.Some states charge sales tax on the selling price of the vehicle ,some states tax the payment as you mentioned above.Some cities will also impose additional taxes on the payment after the state takes its cut.

ryce69 · January 2007

Actually what it sounds like is she went to the original dealer on 12/30 and was quoted figures based on the month of December.Then she returned in January and was quoted figures based on the current month.It is NOT, in her words "[non-permissible content removed]".Many manufacturers change their offers and deals from month to month depending on how they want to spend their money.A monthly payment can vary $10 to $20 if a money factor or residual is changed(and yes this can all happen without the dealer jacking up the price)..There absolutely are some horrible Dealers out there but it is Not always their fault.

ryce69 · January 2007

"Always negotiate the vehicle price starting from the invoice price and then calculate the monthly payments".I agree if you have made your decision on one particular model.However if you are comparing different makes of cars selling price may not ultimately be the most important.For example a Mitsubishi Outlander may have a higher selling price then a Toyota Rav 4 however there maybe a stronger lease program or APR program from the manufacturer that ultimately brings the monthly payment on the Mitsubishi lower. Always remember to examine the deal as a whole not just individual parts.....

CarMan@Edmunds · January 2007

Hi bimmer_girl. You never mentioned the selling price or MSRP of the Outlander that you are interested in leasing. These are important numbers 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 this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle 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 these numbers are.

Car_man
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CarMan@Edmunds · January 2007

A 60 month lease, :surprise: . You were right to turn that offer down, bimmer_girl. Like I mentioned in my earlier post, you need to negotiate as low a selling price as possible on this truck and then have the dealer that you are working with calculate its lease payment using Mitsubishi's buy rate lease money factor. When negotiating this truck's capitalized cost, its selling price, make sure to take the $1,000 lease cash that Mitsubishi is currently providing on it into account. The current buy rate for a 36 month lease of a completely loaded 2007 Mitsubishi Outlander is .00327.

Car_man
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CarMan@Edmunds · January 2007

Hi mictra. The methods that are used to calculate sales tax on leased vehicles vary from state to state. If you tell me what state you are in I would be happy to tell you how it is done in your area or if I don't know direct you to some web sites that might have an answer for you.

Car_man
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CarMan@Edmunds · January 2007

Hi dodo2. The 2007 Outlander's lease program varies depending upon what trim level you get, how long you lease it for, and its mileage allowance. I would be happy to give you an idea of what this truck's current lease program is like if you provide me with that information.

Car_man
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bimmer_girl · January 2007

Hi Car_man,

In fact, I leased the Outlander Friday afternoon. I paid invoice for it. I absolutely love the car! It's so amazing. The folks at the dealer i finally chose were so nice and patient with me as they tracked down the only black on black XLS with navigation in the entire state of Texas, and now, it's mine! Pictures will be posted in the picture thread.

Kristina

mrmister2000 · January 2007

Hi Car_man,

Could you please possibly give me an idea what the lease program/APR/lease money factor rate would be for the following?

AWD Outlander XLS
Sun&Sound Package
Luxury Package
Navigation Package
10,000-12,000 miles per year
36-month lease

Thanks!

P.S. Bimmer_Girl, congrats on your new Outlander! I know you're loving every second of it!

bimmer_girl · January 2007

Thanks mrmister2000, it really is awesome. I think I recall you mentioning you qualify for the Education Edge discount too, go for it! I also got 1000 lease cash due to a current lease incentive, so i got basically $1500 knocked off an already low invoice price. 36 month lease, and used my currently ending 2004 civic lease as a trade in to save on sales tax.

dodo2 · January 2007

Hi Car_man. I'm in Canada so it would not apply. I was asking about the lease rates just for reference and because they are not posted on Mitsu web site. I found that wired.

mrmister2000 · January 2007

Hiya bimmer_girl,

This sorta' relates to a lot of your previous posts and I'm just trying to get as accurate an idea as I can of what you had paid for your new Outlander, which discounts you qualified for, and what the actual down payment was relative to these.

From what I know, it seems like you got your truck for an Invoice of around $27,277 (including destination, excluding taxes), minus $1,000 lease cash-back, minus another $500 college grad rebate... for a negotiated leasing price of around $25,777 before taxes. And to this you had put an additional $1,000 or $1,500 cash down payment on top of that. Is that right? Did they also require a separate security deposit from you separate of the down payment?

I was just asking b/c when I plug these numbers into the Leasing Calculator on the Edmund's site the monthly payments with the above numbers and a security deposit of around $450 the leasing cost comes out to around $412/month before taxes, assuming a money factor of .00327 and a residual value of around $15,000 dollars.

That is quite a difference... $412/month as opposed to around $300/month ... which is why I'm trying to figure out your particular scenario. Are some of the assumptions which I had made above incorrect?

::Continues to scratch head :confuse: ::

bimmer_girl · January 2007

Hi MrMister,

You are correct about the invoice price, $27,277. $25,777 then with a $1500 down payment. Lease rate of .0027 though I believe, not .00327. Also, I didn't need a security deposit because I have the highest credit score possible, so that put me in their so-called "Tier 1" category which doesn't require a deposit. I corrected them on that because they "misread" it. The residual value of the truck is actually $16,090.25. I elected to pay the bank's acquisition fee of $595 up front rather than finance it. So that brought my total payment up front (minus sales tax) to $2095.00. Sales tax was minimal because I traded in my old lease vehicle, which saves such tax (you pay sales tax only on the difference between the selling/buyout prices of both vehicles). My monthly payment is below $295/month.

Hope this helps.

Kristina

mrmister2000 · January 2007

Thanks, Kristina!

That helps greatly!

Tim

wlj · February 2007

Car_man,
I have been looking at a Mitsubishi Outlander XLS AWD to lease. Apparently they are more expensive here in Virginia. When everything was plused and minused (not including TTL) the cost was almost $30K. They deducted the $1000 rebate. A 36 month lease based on the MSRP was $300 a month and I pay them $6,000 plus TTL. After I read what was being said in the forum here, I told them how hard pressed I was to accept their offer. The Outlander had everything on it. When I told them about the person that got one with everything on it for $289 with $1,500 down, they said the one I was looking at must have more options on it. What do you think would make such a difference? Sounds to me as if it was just the dealership trying to get to me.
Thanks for any comment.
BJ

mrmister2000 · February 2007

Hi BJ.

The fact that the one you are looking for is an AWD (not a 2WD) will affect the price somewhat.

Exactly what option packages were included in truck which you received the estimate price for?

erich7 · March 2007

Hi Car_man,

What's the current buy rate and residuals for a 36 and 42 month lease? The dealer (So California) is selling it at invoice ($27,277).

Thanks for your help.

crispyj · March 2007

Hey Kristina - if you still happen to be surfing this forum... what do you mean when you say you traded your "old lease vehicle"? I've got a month left on a lease and am jonesing to lock up an Outlander. You obviously got a smokin deal, so i'm just looking for some insight.

thanks in advance.

CarMan@Edmunds · March 2007

Congratulations on your new Outlander, Kristina. I'm glad that you had such a pleasant buying experience.

Car_man
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CarMan@Edmunds · March 2007

Hi erich7. If you were to lease a 2007 Mitsubishi Outlander XLS 2WD through its captive finance company right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00235 and 52%, respectively. The numbers for an otherwise identical 42 month lease are .00235 and 49%. When negotiating your lease on this truck, make sure to take advantage of the $1,000 lease cash that is available on it. It will help you to negotiate an attractive capitalized cost for the truck that you want.

Car_man
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tmazsa · March 2007

I was just offerd a lease on an outlander xls 4wd. msrp=29000, price=27375, downpayment=4500, payment=321 per month for 36 months, 12000 miles per year, does not include tax, buy at end for 14747. would appreciate any help in deciding, thanks Tom

CarMan@Edmunds · April 2007

Hi Tom. Let me begin by saying that $4,500 is way too much money to put down when leasing. I always advise consumers against making large down payments on leased vehicles. I do so because you risk losing any money that you put down if your leased truck is totaled in an accident or stolen and never recovered.

Let's take a look at the selling price that you were quoted for this lease. Mitsubishi is currently providing a $1,000 cash incentive on leases of the 2007 Outlander this month. After taking this incentive into account, this truck's selling price is really around $28,375. That means that you are being given a $625 discount on a truck that has a spread of a little over $1,400 between its MSRP and dealer invoice price. If I personally was in the market for an Outlander right now, I would shoot for a slightly larger discount than the one that you are being given.

Car_man
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susieq6 · April 2007

I just leased an Outlander and received my first statement. It has a payoff amount. What does that mean in terms of a lease? I owned my last car.

jl49 · June 2007

Hello Carman,

Can you tell me what the residual rate and money factor would be for an Outlander XLS 4WD w/ the luxury package and sun / sound package. It would be for a 36 month lease and 10000 miles per year. Also, I live in NY and I was wondering if it would be realistic to try to lease this car for $350 - $370 per month with no money down and taxes incorporated into the monthly payment.

THanks.

smily157 · September 2007

I just got a loaded 07 4WD Outlander on August 31, 2007 (last day of the month meant they were eager to meet their sales goals and gave me a killer deal). It has the Navi Package, Luxury Package and the Sun & Sound package, MSRP of $30,650. I decided on a lease. My dealer gave me a quote of around $27,500, plus $1,000 lease bonus, for a total of $26,500. I put $1,000 down, plus $2,500 trade in on my old car, for a total of $3500 down. They did not have the exact colors I wanted (black ext. tan int.), so they had to find it from another dealer. So in the end, I am paying $389.99 a month for a 15k mile a year, 3 year lease, and all tax, tags and title are included. This is a little higher than I wanted to pay, but I don't have much credit, as I am 19, so frankly I was happy I was accepted at all. The buyout price at the end of the lease was about $15,500 should I decide to buy it after the lease. All in all I am very happy with my purchase. I have no major complaints about the car at this point, I really actually love this car overall, it was the best value for the money!! I would highly recommend it to anyone who wants a tech-heavy, 4WD SUV (technically CUV) that drives more like a car than a truck, just keep in mind that it is a $20-30k car, so it's not the most luxurious, but it is more than fine for someone like me.

jl49 · September 2007

Congratulations! Sounds like a good deal. Good luck and drive safe.

rcpax · September 2007

Congratulations, first for being smart by doing the math on price vs features, and second, for doing yourself a favor by driving one of the safest vehicles in its segment. Enjoy your ride.

emil77 · December 2007

Hi Car_man,

I am in the market for a '08 2wd XLS with the Sun/Sound and Luxury package. I live in zip code of 91042. What am I realistically looking at for a 3 year lease? 15,000 miles a year would be nice, minimum down payment if any.

Thanks,
Emil

beargator56 · April 2008

Hey Car Man... I am looking at a 2008 Outlander XLS 2WD. The window sticker is $29,400. The vehicle has the sun/sound, luxury, and nav packages. The other Outlander pricing forum recommends trying to negotiate $1500 under invoice, which would be $26,248, based on Edmunds' stated invoice of $27,748.

I live in the ATL area (30265), and would like a lease of less than 48 months. Preferably 39. Annual mileage would be 12k. I don't know what the money factor or residual on this truck would be at this time. I'd like to kep the payments in the $350-400 range, if possible. I'm hoping you can tell me how to get there!

Your help is greatly appreciated!

tootired · May 2008

I am at the threshold of the dreadful lease negation, again. I very much want an 08 Outlander but I want to cut to the chase with my dealer and make a good but reasonable offer on a 3 year/ 10K miles lease. I can not find the residual or bank rates on it. Could someone take pity on this TIRED person and give me your best estimate of monthly payments for me. Any help or advice is most appreciated!

MSRP base-25.1K
Total MSRP with options and 32.5K

taxes not included in my numbers

What I'm looking for is a monthly payment, INCLUDING tax and whatnot. I want to sign & go.

Anyone?

matrsoskin · May 2008

Hi tootired!

I hope this will help.

I have received a lease quote from the Mentor Mitsubishi in Cleveland:
2008 Outlander XLS AWD with the Luxury and Sun and Sound Packages: 24 months, 15K miles per year: $435/month ($464 with taxes), first month payment + $350 doc fee/plates ($814 total) due at signing. Nothing else out of pocket. I think this is an outstanding deal. The only thing that keeps me waiting is the 2009 Outlander model with (possibly) the new dual-clutch transmission.

Cheers

tootired · May 2008

Hey! Thanks matrsoskin!!

At least I know where I stand. Sounds like a good deal. I'm wondering if a 3 year will make a big difference in monthly price. I suspect I'll see.

Not sure the dual-clutch will make it to the USA in 09. I have a 2 month window but I doubt I will be in an 09 as I need to be effective as possible and it wouldn't make a difference to this tired lady anyway. The dual-clutch, that is.

I appreciate the info.

Many thanks!

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