Leasing questions

I've never leased a car before, as I used to drive 15-16K miles a year. But now that I live 5 miles from work and only drive 6K miles a year, I could lease a car w/o fear of exceeding mileage.

My current car is a '00 Grand Am GT, to make the math easy let's say trade-in value is $4K (I own it, loan is paid off).

If I were to lease an Impreza 2.5i that's 19K, and I owe $1300 at lease signing, what does the other $2700 go towards (besides taxes & tags)??

Yes I know I'd be better off selling it myself, but I have visions of something breaking in the middle of someone test driving it.

Well, you could either use that as extra money down, and lower your monthly payments, or keep the money to use for future payments. Leases basically work like this: They take the negotiated price of the car, let's say in this case $19k. Residual value after a three year lease is usually about half that, $9500. That's paid off over 36 months, in this example, meaning $264/month. Then the residual and the initial cost are added together, (giving $28,500) and multiplied by a "money factor." When I negotiated a lease a few weeks ago, the money factor was .0023. In this case, it gives you an additional $65/month, totaling $329/month. Any down payment would reduce the initial cost (the $19,000), and you can recalculate from there. It's worth doing the calculations while negotiating. Some dealerships add numbers in an...interesting manner... You look like a complete geek whipping out a calculator, but it can save you.

Long winded answer to a simple question. Hope that helps.

+1

Also keep in mind that some states add sales tax to your monthly payment.

I am not sure what kind of lease deal they are offering on the 2.5 Impreza but I know they were offering a $269 per month lease on the Tribeca.

Check for specials.. SUBARU.COM : TOOLS : FINANCIAL SOLUTIONS : SPECIAL OFFERS

For the Impreza it's $169/month for 48 months, $1294 due at signing.

Yeah I'd rather have a Legacy but there aren't any lease deals, and I would probably be a bit above what I want to spend.

If I get a used '02-'04 Legacy, for $15K I'd be paying around $225 a month.

Or I could lease a new Impreza for around the same or a little less.

Well, you could either use that as extra money down, and lower your monthly payments, or keep the money to use for future payments. Leases basically work like this: They take the negotiated price of the car, let's say in this case $19k. Residual value after a three year lease is usually about half that, $9500. That's paid off over 36 months, in this example, meaning $264/month. Then the residual and the initial cost are added together, (giving $28,500) and multiplied by a "money factor." When I negotiated a lease a few weeks ago, the money factor was .0023. In this case, it gives you an additional $65/month, totaling $329/month. Any down payment would reduce the initial cost (the $19,000), and you can recalculate from there. It's worth doing the calculations while negotiating. Some dealerships add numbers in an...interesting manner... You look like a complete geek whipping out a calculator, but it can save you.

 

Long winded answer to a simple question. Hope that helps.

Well if that's right then what fine print did I miss?? Current lease deal for an Impreza is $169/month for 48 months.

Subaru.com | Error

Any word on what deals they will have for Aug.? Isn't August usually when they have the best deals to make way for the new model year?

The deal I mentioned above is for a manual tranny, though they emailed me back saying that was also good for an auto tranny.

Current deal for a Legacy is OK, $219/month for 4 yrs but they want $4,313 down!!!

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