PDA

View Full Version : Subaru lease question



New2Talon
11-26-2007, 11:38 PM
Does Subaru offer buy-out options for 08 models?

I've been looking on their website and can't seem to find any buy-out/lease end prices, or even that they offer the option of keeping the car after your lease term is up.

I also can't figure out why their prices are so out of line with other competitors.

ie i'm looking at a legacy 2.5i. All said and done with tax and everything it work out to about ~29k.

With 4k down over 36 months @ 1.9 apr my monthly payments are 397/mo


Now take the same 30k car with a 4k deposit and similar lease rates and they are all cheaper.


08 civic si coupe - 30k all in - 2.9% apr - 36 months - payments are 293/mo

08 camry se - 28k all in - 4.9% apr - 36 months - payments are 414/mo

08 altima coupe 2.5s - 29k all in - 3.9% apr - 36 months - payments are 363/mo


Why do these 3 comparable cars have HIGHER interest rates, but cost 40-100 CHEAPER?

Can someone explain how exactly this works? I know the buyout value will vary, but on a 30k car over 36 months it should be similar to one another (within a few grand or so)

jdmXSI
11-27-2007, 11:07 AM
The reason for the payment being higher is that your residual value is lower. Your finacing a larger portion of the car than you would be with the other competitors. Your Lease end value is anywhere from 42-48% of the MSRP & Freight & PDI depending on your model. Dont hesitate to ask if you have any questions.

benyl
11-27-2007, 11:16 AM
Residual are important when you are comparing 2007 and 2008 cars as well.

The 2007 cars will have 4-8% lower residuals because they are already a year old.

When someone buy a used 2007 3 years from now, they care about the in-service date, they care about the "year" of the car. So a 2007 made in June of 2006 is worth the same if it is sold in Sept 2006 or Nov 2007.

But to someone buying in 2010 or 2011, they are same year.

New2Talon
11-27-2007, 11:36 AM
Originally posted by jdmXSI
The reason for the payment being higher is that your residual value is lower. Your finacing a larger portion of the car than you would be with the other competitors. Your Lease end value is anywhere from 42-48% of the MSRP & Freight & PDI depending on your model. Dont hesitate to ask if you have any questions.


But with the civic the total cost is 29780. Lease end is 15741. Thats 52% of total (mspr/tax/etc)

Thats only 4-10% difference on the residual value, so why are the payments 25% lower WITH 1% higher interest. I understand that the residuals are going to be different, but why is it so much difference in the prices? What would a subie Leagacy 2.5i with no options be worth at the end of a 36 month term @ 1.9% with 4000 down? To make up for such a high difference in the monthly prices the subie should fall into the *42%* range, making lease end price close to 12000. Is that right?

Is there any way to "tailor" a lease so I can have lower monthly payments but a higher residual value? Higher payments would be good if I plan to buy the car out at the end, but if I don't want to keep it at the end of the term, then there is no point for lower residual value.

BTW XSI do you work at subie? Which one? Do you have any 07 impreza left? Particualrly wrx. Do you offer lease on 07? What would the rates be? Please PM

leec001
11-27-2007, 01:19 PM
No one will offer a low lease payment with high lease end value. The lease end value has to be lower than the market value (at the end of the lease). It is because you can just return the vehicle to the dealer and walk away at the lease end and the dealer is going to lose money on it.

New2Talon
11-27-2007, 11:26 PM
Originally posted by leec001
No one will offer a low lease payment with high lease end value. The lease end value has to be lower than the market value (at the end of the lease). It is because you can just return the vehicle to the dealer and walk away at the lease end and the dealer is going to lose money on it.


If the car is lower than market value at the end of the term, that would mean the dealership is going to loose money if I buy it. No? I mean if market value is 15k at the end of 3 years, and my lease end is only 12k, then it would be in the dealerships best interest for me to return the car to them, and for them to sell that car for 15k, otherwise, if they sell it to me, they loose out on the 3k. Did I mis-read what you said, or am I missing something?


Would a car that will retain its value (import) be better for a walk-away lease, vs a car that will not hold its value (domestic) over the same amount of time? ie 3 years of depreciation. Generally speaking...

leec001
11-28-2007, 09:04 AM
Originally posted by New2Talon



If the car is lower than market value at the end of the term, that would mean the dealership is going to loose money if I buy it. No? I mean if market value is 15k at the end of 3 years, and my lease end is only 12k, then it would be in the dealerships best interest for me to return the car to them, and for them to sell that car for 15k, otherwise, if they sell it to me, they loose out on the 3k. Did I mis-read what you said, or am I missing something?


Would a car that will retain its value (import) be better for a walk-away lease, vs a car that will not hold its value (domestic) over the same amount of time? ie 3 years of depreciation. Generally speaking...

The dealerships won't lose money on it. You paid the interest already and just like you paid cash to buy a new vehicle. They have already earn the mark-up. If you return the vehicle after the lease, they will sell it and earn the differences. If you buy it out, they have already earn the interest and mark-up. That's how the dealership doing business............you are the loser at all time.

Ralliart
11-28-2007, 12:35 PM
I had a 06 impreza 2.5i on a 2yr lease the buyout was $15,200 I think the car costed me like $25,600 financed. Payments were like $413. I thought it was great I was sure that a 2yr old subaru would be worth more then 15,200 Im sure you could sell it for $19,000. I had to end my lease early since I was moving, after 1yr the dealer just bought me out even.

Hope that helps

alexe
11-29-2007, 11:16 AM
generally on a lease your best bet is to buy it out unless you can just write of your payment to a company or something if your looking for a lower payment you can go to low km leases too if your planning on buying out thats your best bet. pmed as well