godwhomismike Posted August 21, 2004 Share Posted August 21, 2004 How is this deal? '05 Legacy GT Limited Sedan (Regal blue/black leather) Automatic sub/amp package security upgrade auto dimming mirrors $349.89/mo for 48 months w/ $2000 down (lease) Should I go for it, or is it a bit high? - Mike Link to comment Share on other sites More sharing options...
rao Posted August 21, 2004 Share Posted August 21, 2004 Get all of the info (like the amount of taxes and other fees) and the interest rate (they may call it a money factor, if so multiply it by 24). You need to give more information so that the price of tehc ar can be calculated. Rob IF YOU CARE ABOUT YOUR CAR YOU SHOULD NEVER DRIVE IT Link to comment Share on other sites More sharing options...
clearcornea Posted August 22, 2004 Share Posted August 22, 2004 I'm also interested in leasing a Legacy GT Limited. Any feedback will be appreciated. Thanks. Link to comment Share on other sites More sharing options...
SBT Posted August 22, 2004 Share Posted August 22, 2004 Also, You'll want to know specifically what the "residual" will be (what they say the car will be worth at lease return) and whether this is an open-ended lease or a closed end lease. Money factor or the percentage is also a factor right now. 2.9 - 3.5% seem be the average. But that is changing with the interest rates going up. The residual, if artificially high, can seem to make the leased amount smaller, but if you want to possibly purchase the vehicle at the end (wouldn't make a whole lot of sense) then the new "purchase price" is over-inflated. Some lease holders will accept less but there's no guarantee. You'll also want to make sure that you clearly bound the terms/length of the lease (closed end lease) so that nothing is subject to change during the period of the lease. HTH, SBT - Pro amore Dei et patriam et populum - Link to comment Share on other sites More sharing options...
frontrangeSubie Posted August 22, 2004 Share Posted August 22, 2004 You can't tell if that is a good deal.....Usually "payment buyers" are massaged so much by the dealer that you are actually paying over sticker price for the car. Also, in my opinion, there is no such thing as a good deal with a lease. Mark Link to comment Share on other sites More sharing options...
SBT Posted August 22, 2004 Share Posted August 22, 2004 The main thing here is what is the sale price of the car and who is providing the lease. If it's not below invoice (invoice - dealer holdback + shipping) then you are paying too much to start with for the lease. Not sure what the money factor is but just doing the simple math, you're paying nearly $19,000 over the course of the lease with nothing in return. How many miles annual are built into the lease. Most will try to go with 10k miles a year and then charge you some ungawdly amount of money for the additional miles BEFORE you lease (the difference between say 10K and 12K per year) and then really smack it to you when the lease is up if you've gone over the 48mo/48K mile lease total - e.g., you drive 66K miles over the length of the lease and you end up paying an additional $6570 when you turn the car in. (18000 miles additional at $.365 per mile). Bottom line is you: 1) need to know what the car is actually being sold for 2) how many miles you're allowed on the lease 3) what the mileage overage charges are going to be 4) what the total of all the lease charges are going to be worst and best case scenario. Leases are scary especially when you're trying to get into a car that you really, really want and can't swing a normal monthly purchase payment. IMHO - $350 mo plus another $150-200 mo in insurance plus $100-150 mo in gasoline plus $100 mo for maintenance all adds up to a healthy hunk of change. There's a reality check in here some HTH, SBT - Pro amore Dei et patriam et populum - Link to comment Share on other sites More sharing options...
frontrangeSubie Posted August 22, 2004 Share Posted August 22, 2004 From Consumer Reports: Leasing tips: The wrong decision can cost you money When you buy a car you own it outright at the end of the loan. Leasing can get you a lower monthly payment, but you don't own the vehicle at the end of the lease. Which is right for you depends on your lifestyle and driving needs. Obviously, buying a car with cash is the cheapest way to acquire a vehicle because you avoid paying interest on a loan. Even for those who take out a loan, the financial advantage of buying increases the longer the vehicle is kept after the loan is paid off. The attractions of leasing often include a low (or no) down payment and those low monthly payments. (The monthly payments need to cover only the car's depreciation and finance charges, not the total value of the vehicle.) The lower monthly payments of leasing can also let you drive a more expensive car than you could otherwise afford. Another attraction of leasing is that at the end of the lease, you can simply return the car to the dealer and walk away from it. You don't have the hassle involved with selling or trading in your old car. Leasing has its drawbacks. Once you're in the leasing habit, monthly payments go on forever. You do get to drive one late-model car after another, but you're always on the steep side of the depreciation curve--the time of a car's life when it depreciates the fastest. (It's the same as if you traded in your car in every two or three years.) When you own a car, you can put on as many miles as you like without a financial penalty, and wear and tear need not be a special concern. When you lease, you pay penalties of perhaps 25 cents per mile for going over the preset mileage limit--usually 12,000 to 15,000 miles per year. You'll also have to pay to have the car reconditioned if the dealer judges that it suffers from excess wear and tear when you turn it in. Of course, if you own a vehicle, excessive wear and tear will lower its resale value. If you need to get out of the lease before its term expires, you may be stuck with thousands of dollars in early-termination fees and penalties--all due at once. The bottom line: leasing is best for those who drive less than 15,000 miles a year, who keep a vehicle in good shape, and who tend to get a new car every two or three years anyway. If you decide to lease, shop lease rates the same as you would loan rates. Manufacturers' subvented leases can be particularly good deals. [b]10 TIPS FOR A SMART LEASE[/b] 1. Negotiate the vehicle's purchase price as if you were going to buy the car. Once you have a firm price, only then bring up leasing. 2. Negotiate the mileage limit, down payment, and purchase-option price. All can be bargained over. 3. To turn a lease's decimal "money factor" into an approximate annual interest rate, multiply the money factor by 2,400. 4. Buy gap insurance to protect yourself if the vehicle is stolen or is totaled in an accident. 5. Look for cars that don't depreciate faster than average. Check the "predicted depreciation" rating in each vehicle profile. 6. Avoid leases that extend beyond the car's factory warranty, if you can. 7. Note any end-of-lease procedures and fees. 8. Buy extra miles up front if you expect to run over the standard allotment. 9. Make sure your trade-in is deducted from the leased car's "capitalized cost." 10. After the lease has ended, if you choose to buy, try to bargain down the purchase price. Mark Link to comment Share on other sites More sharing options...
godwhomismike Posted August 25, 2004 Author Share Posted August 25, 2004 Ok got the figures $339/mo for 48 months + tax (8.65% NY state) $14,400 balloon payment at the end $2000 down 12,000 miles a year - Mike Link to comment Share on other sites More sharing options...
Guest *Jedimaster* Posted August 25, 2004 Share Posted August 25, 2004 The balloon payment is what you would have to pay at the end of the lease to keep the car, right? Link to comment Share on other sites More sharing options...
inthedeck Posted August 25, 2004 Share Posted August 25, 2004 that's a lot of cash, when you think about it. Hey, well, it's your choice...but you could finance it, and pay it off in that much time. Your choice, your money. Hope you are happy with it. And yeah, Jedi, the balloon payment is the 'buyout' payment at the end of the lease. Later, i. Link to comment Share on other sites More sharing options...
awdG35killer Posted August 25, 2004 Share Posted August 25, 2004 [quote name='godwhomismike']Ok got the figures $339/mo for 48 months + tax (8.65% NY state) $14,400 balloon payment at the end $2000 down 12,000 miles a year - Mike[/quote] = $32,672 + tax i hope your getting a fully optioned Limited 5eat for that price Link to comment Share on other sites More sharing options...
Deer Killer Posted August 25, 2004 Share Posted August 25, 2004 FYI I paid about $4000 less than that including finance charges and tax, only I got the MT5 and no subwoofer. leasing = teh suck. I wouldn't let any of my friends lease if they asked me. Link to comment Share on other sites More sharing options...
il collaudatore Posted August 25, 2004 Share Posted August 25, 2004 I'd just buy it. The only car I would lease would be a luxury European car- lease the car for the length of the waranty so you don't have to worry about spending $1000 for a service interval and another $800 for who knows what will break down, which can happen all in a month. I imagine Subaru running costs are no where near a luxury German brand. Leasing is also a bitch because you're constantly worrying about how many miles you have, esp. toward the end. You should be sure that 12,000 mi/yr is enough for you. Also, at then end the dealer can be a bitch about the car- they may get nasty so you can buy the car from them. Like that article says, they may charge you all these "reconditioning fees" to make buying the car look like the better option. Link to comment Share on other sites More sharing options...
godwhomismike Posted August 25, 2004 Author Share Posted August 25, 2004 With my current job, I am really only driving on the weekend, so 12,000 miles a year is more than enough. As for the "deal" the dealer's giving me, I've seen an Audi A4 1.8T, BMW 325Ci, and a Mercedes C class all advertised around the same as what he is giving me for the Subaru. That makes me hesistant. - Mike Link to comment Share on other sites More sharing options...
D-2.5-GT Posted August 25, 2004 Share Posted August 25, 2004 I would be careful with what you see for advertised prices. Those are usually just to get you in the door. I have seen some really low monthly payments for some BMW's and MB's, but they were either with a lot of $ down, or for only like 8k - 10k miles a year. Too bad NY tax kills you...not used to that...in NH its ZERO! :D Link to comment Share on other sites More sharing options...
BernardP Posted August 26, 2004 Share Posted August 26, 2004 Mike, you seem to have abandonned your other thread on this subject. [url]http://www.legacysti.com/viewtopic.php?t=2422[/url] You have got some figures but not all. What price are they selling you the car (capitalized cost)? What is the stated interest rate? A lease is nothing more than a loan that is not paid off completely, leaving a residual that has to be paid to get ownership of the car. But interest is always paid on the full amount on the loan, of course. Link to comment Share on other sites More sharing options...
frontrangeSubie Posted August 30, 2004 Share Posted August 30, 2004 [quote name='BernardP']Mike, you seem to have abandonned your other thread on this subject. [url]http://www.legacysti.com/viewtopic.php?t=2422[/url] You have got some figures but not all. What price are they selling you the car (capitalized cost)? What is the stated interest rate? A lease is nothing more than a loan that is not paid off completely, leaving a residual that has to be paid to get ownership of the car. But interest is always paid on the full amount on the loan, of course.[/quote] Exactly...he is a payment buyer....buying for sticker. Link to comment Share on other sites More sharing options...
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