Lease??

So any advice on a lease? So much to read.

 

 

Long story short, we normally buy and keep vehicles until they die.

 

 

That was the plan with the 2011 Legacy until a deer totaled that plan.

 

 

The Legacy only needed to last 3 more years until daughter went to college.

 

 

So instead of buying a beater, for about the same money we're leasing a Impreza for 36 months /10K.

 

 

Never leased, so trying to learn fast since I found a 2019 stick, and put a deposit down to hold it.

I personally stick with buying slightly used cars with warranty. This way the first 2-3 years of rapid depreciation are over and I have a nice car for 2/3 of the original price.

I never finance at the dealer. Instead I shop around for the best car loan rate at local credit unions and finance through them.

 

FWIK, lease is a bad financial decision most of the time. The house always wins.

But if money is not really a worry it does come with some benefits.

I personally stick with buying slightly used cars with warranty. This way the first 2-3 years of rapid depreciation are over and I have a nice car for 2/3 of the original price.

I never finance at the dealer. Instead I shop around for the best car loan rate at local credit unions and finance through them.

 

FWIK, lease is a bad financial decision most of the time. The house always wins.

But if money is not really a worry it does come with some benefits.[/QUOTE]

 

What He said in read. find a nice used 2.5i legacy and buy it. that will get you through the next 3 years, just keep up on the maintenance.

 

Then get and LGT and have fun lol.

My 2 cents. Leasing is great for those who need/like a new car every 2 or 3 years. Since you never own it if you took out a loan.

If your just looking for 3 years it may make sense to lease if you want a warranty. (Personally I would buy a used car though) Leases often get owners into trends of lease after lease. You also have to pay the highest local taxes (if applicable where you live) and new car insurance rates.

 

When I ran numbers for a lease 5 years ago. It was going to cost me about $1000 to more to lease vs lease and buying the lease out. (It was mostly the acquisition & deposition fee).

 

A lease through Subaru financial is likely to be standard no matter what dealership you goto.

 

You should negotiate the price of the car and see what the lease payment works out to. The acquisition fee ($295) deposition fee ($300), money factory (interest rate) are set by leasing company as it is residual value. The dealer documentation fee obviously varies by dealership. I personally wouldn’t put much down on a lease, if the car is ever totaled, you don’t get your down payment back. The interest rate in the (money factor) was usually a little higher than purchase rate. I want to say the forester I priced had a interest rate of 3.7 when the purchase apr was 2.99.

Edited December 21, 2019 by dgoodhue

leasing = renting and do not let anyone tell you different.

 

we will use the current legacy lease for $235/month for the base

 

so your payments would be (not including tax, title, fees, etc) for 36 months (based upon the zip code I entered)

 

$8460

$2635 due at signing

$0 security deposit

so for 3 years it cost you at a minimum $11,095 on a car that costs $22,745 so yeah you paid for nearly half of the car that you have to return or buy at an inflated price.. To add insult to injury Subaru will then turn around and SELL that car roughly $18K. so yeah you get the short end of that stick

Edited December 23, 2019 by YeuEmMaiMai

leasing = renting and do not let anyone tell you different.

 

we will use the current legacy lease for $235/month for the base

 

so your payments would be (not including tax, title, fees, etc) for 36 months (based upon the zip code I entered)

 

$8460

$2635 due at signing

$0 security deposit

so for 3 years it cost you at a minimum $11,095 on a car that costs $22,745 so yeah you paid for nearly half of the car that you have to return or buy at an inflated price.. To add insult to injury Subaru will then turn around and SELL that car roughly $18K. so yeah you get the short end of that stick

 

Believe or not that, Subaru is offering a pretty good deal on that Legacy car (the same deal is on Subaru national website). The buy out is $13,005 and unless I made a mistake the interest rate the money factory is calculated on is 1.75%. Even with a good lease deal, one is still paying $11k plus taxes.

 

One common mistake people make is they don't realize that the leasing company owns the car at the end of a lease not the dealer itself. A dealer will buy that leased car from the leasing company. If the leasing company accurately determined the residual value, the dealer will end buying the car for $13k and then add $3-4K to refurbish and profit. This is how you end with typical asking price of $18k 3 year old used Legacy coming off lease on a new dealer car lot.

Leases are horrible right now. Went to check a lease on a 2019 Legacy and the prices were astronomical. I have leased with only paying the first month, 12K/36 month and usually return the car after two years with almost 36K miles on the clock and they buy it out and lease me a new one for almost the same price. This year they wanted almost double for a new lease on a 2019. I am looking to buy a used one when I'm done with this lease. I have leased three Legacies this way for the past 7 years. Not this time.

Believe or not that, Subaru is offering a pretty good deal on that Legacy car (the same deal is on Subaru national website). The buy out is $13,005 and unless I made a mistake the interest rate the money factory is calculated on is 1.75%. Even with a good lease deal, one is still paying $11k plus taxes.

 

One common mistake people make is they don't realize that the leasing company owns the car at the end of a lease not the dealer itself. A dealer will buy that leased car from the leasing company. If the leasing company accurately determined the residual value, the dealer will end buying the car for $13k and then add $3-4K to refurbish and profit. This is how you end with typical asking price of $18k 3 year old used Legacy coming off lease on a new dealer car lot.

 

I was just trying to keep it simple as with Subaru and most other manufacturers, their financial department owns the lease/car. They will typically let the dealer sell the car and they divvy up the proceeds...

 

my 14 was a lease return and was sold to me by the same dealer that originally leased it.

 

I do know there are exceptions to the above.

Subaru leases are handled by Chase exclusively.

Subaru still deals with Chase? Miss those "Subaru bucks" :'-(

Thanks guys, I think everyone was missing the point, this was a vehicle I never planned on keeping, it was to get two kids through high school driving.

 

 

I've searched pretty far and the used cars that come in around the same price as the lease payments aren't that great and then I'm stuck trying to sell something that wasn't that great 3 years earlier. I also have to worry about if it breaks down while I'm on a business trip.

Naw we got the point and it you are better off buying instead of leasing... just be diligent on your searching and you will find a good car.

 

I just wrote a check for $9200 to buy a 2010 outback 3.6R with 140K on it. did some minor repairs and I am sill under $10K for the car...

 

My last car I paid $23K for it and I put down $7K, paid $3K the first month using the proceeds from the sale of my 2002 Acura CL-S, and made the final payment 10 months later. (the payment for my $14 legacy was $312 a month).

 

the 2003 Legacy that I bought in 2014 for $3K for, $5K to fix and 80K later it is still running fine...

Edited December 26, 2019 by YeuEmMaiMai

Naw we got the point and it you are better off buying instead of leasing... just be diligent on your searching and you will find a good car.

 

I just wrote a check for $9200 to buy a 2010 outback 3.6R with 140K on it. did some minor repairs and I am sill under $10K for the car...

 

My last car I paid $23K for it and I put down $7K, paid $3K the first month using the proceeds from the sale of my 2002 Acura CL-S, and made the final payment 10 months later. (the payment for my $14 legacy was $312 a month).

 

the 2003 Legacy that I bought in 2014 for $3K for, $5K to fix and 80K later it is still running fine...

 

 

It would be nice if I had the time. My son goes to a magnet high school 45 minutes away- no bus, so every day I don't have a car for him equals me driving to and from.

So was your lease offer good for the Impreza? It seems like they aren't that competitive at the moment based on what the dealer near me (NoVa) said. And with the other increased costs vs. buying a used car (higher taxes, insurance, etc.) it's like Subaru is steering people away from leases. I have the stupid personal property tax to deal with here in VA that you don't have up in MD, though. (Or am I wrong and you guys also have that?)

So was your lease offer good for the Impreza? It seems like they aren't that competitive at the moment based on what the dealer near me (NoVa) said. And with the other increased costs vs. buying a used car (higher taxes, insurance, etc.) it's like Subaru is steering people away from leases. I have the stupid personal property tax to deal with here in VA that you don't have up in MD, though. (Or am I wrong and you guys also have that?)

 

No personal property tax in Md.

Sounds like it's not a good deal for the consumer. It depends on your outlook, If you look at it as renting, I guess if your fine with that...

 

For many years, the smart way to go is to buy a 2 or 3-year-old car. But a lot of us like to have new cars...

 

I think Kia has some good deals on leases, $180 a month.

I am very sorry for the cars you buy and leave to die in the garage. How can you do this with these beauties?

It seems to me that you definitely need a specialist's advice. It all depends on your credit rating and many other factors.

I also thought about taking a mortgage on a house or saving up money and buying it for a long time. I would have to save for a long time, and all this time, I would have to live with my family on my parents' neck. Then I decided to find out the mortgage details from Mortgage Advisor Leeds. I was offered a good interest rate, and I immediately agreed. We are moving to a new house very soon, and I am very happy with my decision.

Edited December 15, 2021 by Nathanblade