Current LGT owner at an impasse

Just wanted to start out by saying that I am looking for people to help me think this out and am not looking for someone to make a decision for me

 

I have an 05 ULT 5MT and the lease is soon to close in May of 08. I love this car; we have been through a lot (3 cross country trips, two ITN rallies, fun autocrosses and the daily drives) and the formula is great. I have iON springs on stock dampers (I want to change this up), a Perrin airfilter, AP Stage 1, COBB STS and the JDM rear sway bar. Additionally, at 33K this January, I put on fresh BF Goodrich g-force sports which has dramatically improved the car. The car is mechanically in tip top shape, asethically it has some minor scratches and what not that come with the car being on the road; there are no obscene exterior additions and I have never had an accident. I am also 4K over the milage cap and received a 100,000 mile warranty from SOA due to a lousy dealer experience on the west coast. There is a lot of incentive to buy the vehicle out.

 

The timing of all this really sucks. I am soon to be moving back to the east coast (THANK GOD) and have to really figure out how this will go down with having to do something about the car in addition to hauling my ass back across the country. Should I decide to drive back, that will be additional milage placed on the car and I will be within days of having to turn the car in with nothing to jump into. Depending on how long it may take to ship the car, I'd have to explain to Subaru that it is in the US, I just don't know where exactly. Kind of a problem. I feel that I have to take care of this situation before I move in mid-May, possibly late April now due to the significant decrease in cost.

 

I think the LGT (05+) is a great refined formula for any cross between WRC driving and looking good on Saturday night. My car's current state is a perfect example. A few minor upgrades and it can hang with the pack. I would not mind going to an 08 LGT and have entertained the SpecB although the added cost, to me, doesn't really justify the price. The STi suspension and 6 gear are appealing, all the other stuff is frosting. I guess it would be smart to try and get all my goodies off my current car and save them for a new 08 LGT, but I don't have the ability to do that right now...

 

Additionally, I feel that I still have a slight STi itch to scratch. The stock, out of the box performance level of this vehicle and the fact that I wouldn't have to do any real mod work make taking it to the dealership for repairs under warranty very appealing. But when you take into account the fact that it is bit tacky on the interior and certain exterior features, ie the 747 rudder in the rear, it somewhat kills the appeal. Additionally, I do not want to be driving police bait. The LGT is pretty damn covert.

 

I have several things to think about: I will be doing TONS of driving over the mid-Atlantic and up to New England. Family in NE, girlfriend and family in NY. Miles, miles and more miles. If I lease again, I will certainly be going over. I want to maintain the blend of high performance and refinement/luxury. Manual/standard transmission is a must. AWD is very important for both performance and peace of mind in inclement weather. And last but not least, I am a Subie guy at heart and want to give the company my continued business.

 

I have been dabbling between a stock used STi that can be warrantied and certified (some of those words definitely don't go together), leasing an 08 SpecB or buying out my current car. I don't see why I should lease/buy a new 08 LGT when the formula is largely unchanged and mine fits the bill. If I can't get the deal I want (I have excellent credit, the current payment works and my cost of living is going to go up), then I guess I'd have to go look elsewhere. I am thinking either a lease on a G37 Sport (current lease special fits right where I want it 360/mo, 12K/36mo) or BMW. Neither of those are nearly as appealing as Subaru. The Subaru dealer where I live currently doesn't seem too keen on really working with me since I don't chomp at the bit. I have been getting much more positive assistance and feedback from my original NE dealer and a few regional ones. I know that with good credit and a little cash, just about any lease can work out. However, logistics for all this are overly complicating. I know purchase is a different story. Like I said, I am not a 19 year old ready to put myself into financial ruin for a car.

 

So, in thinking this out, I am at an impasse. Thoughts, ideas, a possible flame or two... As mentioned, timing can really jam you.

Financially speaking, and maybe in all other areas also, buying out the car may be your best option. How much would you have to spend to buy the car outright? That would be the big deciding factor methinks.

 

In this situation, I think the best thing to do is buy the car. WIth a new lease/purchase, you will have to put some money upfront. THis could strain your financial obligations. Although, with buying the car, you may be paying alot more over the long run since there might not be any special finance offers, etc available to you.

 

On the shipping/driving part. Just tell the dealer what's going on. I'm sure they would understand. Since you are driving cross-country, and with the price of gas, it may be cheaper to ship, since you have to consider the penalties of going over also.

That's the other issue of the contention. I do not want to pay for the car "twice". And the residual, after this month's payment, will be about 12.2K. Not bad. The payments seem to be between 270-330 depending on the loan term with some not so attractive interest rates.

 

Your point about shipping is good too, and I was considering the same. Between gas, the cost of lodging and food, and the time necessary to drive (completed it in three/four days with 12-14 hrs at the wheel), the cost to ship might equate the time and money driving.

a $12k loan sould only cost you about $225/mo with a decient APR, and with your credit that shouldn't be a problem. If you got the lease brand new, you know the history of the car. If you maintain it properly, you could drive to to 300k miles! I say keep it!

I'd sell and get an econo box - gas is only going to get more expensive as the months progress. Don't be car poor.

Learned today I can secure a 4.75% APR from my credit union. Makes it much more appealing to buy it out and save for a new Subaru. Audi, for a new A4 w/ 6MT, Quattro and 2.0T motor (only puts out 200) can get me a 36 mo, 12K mi lease for 371/mo with 3200 down. Something to consider... But I feel like I'm downgrading performance and upping (SP?) the luxury; basically getting an AWD Jetta with a tuxedo on... While those numbers are good, I think I'd keep my LGT. Audi was another company on my list.

 

I am wanning closer to buying out my car and getting a little more into the modding.

 

tdoggydog, I did look into the whole "ditch to an econo-box", but many are so unappealing. I will be using public transit to get to an from work, so the LGT/whatever will serve for entertainment and galavanting around the eastern seaboard, and bi-monthly driving events. I guess that would categorize it as entertainment. The AP1 provides the economy map which does do a very good job in my eyes. Did a 4.5 hour non-stop using 3/4 tank of fuel. Anyway have to run. This is really helping.

...new A4 w/ 6MT, Quattro and 2.0T motor (only puts out 200) can get me a 36 mo, 12K mi lease for 371/mo with 3200 down. Something to consider...

 

No it's not.

 

You already said you will chew through the mileage on a new lease and you will still have to pay the overage charges when you turn in your current Legacy. It really doesn't sound like leasing is the best option for you and that A4 lease is a lousy deal anyways.

 

I say buy the Legacy outright and have it shipped East. A $12K buyout on the lease with a 100K extended warranty really makes it a no brainer. $12K for 36 months at 4.75% is $358 per month.

$12K buyout? What's the resale value? Over $10K, right? Seems like a no-brainer. Keep driving it, sell it when you're ready to move on.

I am coming to this conclusion. The resale and what I owe roughly equate each other. However, and I guess this largely depends on the interest rate of the final buyout loan, isn't the big faux pais to buy out the lease since you end up paying an inflated price for a vehicle?

$12K buyout? What's the resale value? Over $10K, right? Seems like a no-brainer. Keep driving it, sell it when you're ready to move on.

 

Absolutely. Especially if you will continue to rack up the mileage in the near future. You can do all the driving you want in "your" car. If you lease again you will have to constantly weigh increasing mileage vs. penalties with every trip you make.

 

Although leases have many benefits you are dealing with the 2 biggest drawbacks right now. Having to re-finance the purchase of your "old" car or having nothing at the end of the lease. Having to weigh in any mileage/refurbishing penalties at the end of the lease.

 

Good luck choosing but think buying out is your best bet based on your current situation.

I'd buy out the car simply because you have owned it since new, know its history well, and obviously are still satisfied with the vehicle.

Beat the piss out of it, then return it... And post some cool pics/vids of the beatings!

As mentioned, I owe less on the car than it's KBB value. I have eliminted the Audi (99.9%) sure of this-with that little sliver left. Basically, the incentives to lease a new vehicle are pretty strong as well. My father is a huge car nut and we talked about him providing a third party perspective on the 08 LGT or the 08 STi. Both lease very well and the incentives included in rolling into a new lease from my current financeer are very good which is why this whole thing has become an issue. Reason for looking at those vehicles is because my 05 ULT is beginning to show some interior "age" (very well maintained but I'm starting to get some noticable wear and rub) and an 08 has the luxury refinements that the ULT didn't come with. Regarding the STi, the 2008 has grown up a bit and I wouldn't feel obliged to start dumping money at Avo, PLTek and Cobb to bolster the performance. Good out of the box. So with that, I am very much leaning to the buy out and from there get Megan Street coilovers and a downpipe and going to stage deux. If I get it, I can't really leave it alone... can I

 

But, I want to make sure getting either an 08 STi or LGT is not a dumb thing to pass up.

 

GTSpeed - You should have seen my first ITN rally. I thought I bent the front driver's side wheel after hitting an eight inch pothole in the 5th stage. Not that I really care for the "video" of the car hitting the obstruction. It's more the desire of seeing my co-driver's and my reaction and then the relief that we would not require a tow out of the middle of Bakersfield, CA.

remember, you can always buy an 08 STI or 08 LGt later. with that low of a residual (at least here) an 05 LGT with decent miles sells at our dealer for $21K easy. When I go to sell my LGT in a few months, I'll owe about the same, $12.5K there abouts and can give someone a great deal up here for $18K. Yes, I just switched to a new 08 STI, but then again, I swap cars out ever few years anyways. LGT is the longest I've ever kept one vehicle and well, it tears me up having to get rid of it in a few months (why I still haven't sold it yet). I love this car and it's been a great vehicle to fit most of my needs. However, it no longer does and the requirement for more cargo room/space is necessary. For the price of what I get stock, the 08 STI fit my bill. If it didn't I'd have kept trucking along in the LGT.

 

I say buy out the lease, keep the car and when the timing is better financially, then look at your options.

By your own admission, you'll be putting a ton of miles on any car. So, no matter what, you're going to have a "nut" to pay. Now it's $2 K + over the KBB price to buy the current lease. So, in 3 years or so, you'll have to pay off the mile overage on the STi lease. While waiting sounds attractive, you might do some figuring and see what that's going to look like. I'm guessing a hi mileage STi will cost a lot more but, that's 3 years down the road so to speak.

 

I never saw the financial benefits of leasing but, there are plenty who will argue that it's worth it for a better car and lower upfront costs.

I would have leased my STI however too many miles = too much $$$.

Going to look at an 08 STi one last time this weekend but I'm pretty bent on keeping my car and investing a little fun money in it for a UP/DP and better brake hardware. I'm surprised with how well the STi leases. Other thing I would have to get are a second set of tires for winter.

Thanks for all the help from those on this site. After exploring options, I am going to go ahead and buy out my LGT. After perusing the parts, I am going to go with the Cobb UP and HFC DP and flash to stage two. Subsequently, going to do the Cobb sway bars and replace my JDM STi one in the rear. Minor brake upgrades to follow.

 

The 3K I have put away is going to mature and go toward my next Subaru

 

Thanks again.

^^ sounds like a great decision.

 

In a couple years, I'm sure you'll be happy you did. Though the 08 STI is fun (now that i've finally broken her in), the LGT is just so smooth and classy.