Tips on lease legotiation

[ryan2022]

Hi guys,

Can any of you offer tips on lease negotiations? particularly Subaru? We're in Canada,
and are looking at the new Crosstrek.

The lease rates for September are already excellent, but we get another percentage off with customer loyalty from the Impreza.

Can I use the lease calculator as a tool? I've only bought one other new car, and had a friend in the business.

Thanks.

 

[Pop_Rivit]

Sure. Buy a vehicle you can afford and forget about getting fleeced by a lease. Leasing is the most expensive way to purchased a vehicle and for most consumers it's financially foolish.

 

[Jim_Bob]

The reason car dealers push a lease is because it has the highest profit margin for them, not because its good for the consumer.
A lease is a fancy term for rent, a car lease is a long term rental. You have to pay payments with interest and maintain the car perfectly. If the car has damage, which they all do, then you have to pay to fix it. Oh yeah, the tires have to be good too when you return it or they charge you for new ones.

As stated above, BUY a car you can afford, don't lease.
Btw, I work in the used car business.

 

[JTK]

Originally Posted By: ryan2022
Hi guys,

Can any of you offer tips on lease negotiations? particularly Subaru? We're in Canada,
and are looking at the new Crosstrek.


Negotiate the sticker price down first, apply any incentives you may be eligible for, then negotiate your lease terms if that's the route you want to go. My 2012 Legacy is leased.

Obviously leasing is not the best financial decision, but I'm sure you know that, and it wasn't what you were asking anyway..

As far as leasing goes, Subaru leases aren't bad due to the fact they hold their value so well. The residual/buyouts are reasonable on them.

FWIW, Honda leases are similar.

Joel

 

[JHZR2]

Originally Posted By: Pop_Rivit
Sure. Buy a vehicle you can afford and forget about getting fleeced by a lease. Leasing is the most expensive way to purchased a vehicle and for most consumers it's financially foolish.


+1

 

[demarpaint]

Originally Posted By: JHZR2
Originally Posted By: Pop_Rivit
Sure. Buy a vehicle you can afford and forget about getting fleeced by a lease. Leasing is the most expensive way to purchased a vehicle and for most consumers it's financially foolish.


+1


+2

 

[SatinSilver]

Originally Posted By: Jim_Bob
The reason car dealers push a lease is because it has the highest profit margin for them, not because its good for the consumer.
A lease is a fancy term for rent, a car lease is a long term rental. You have to pay payments with interest and maintain the car perfectly. If the car has damage, which they all do, then you have to pay to fix it. Oh yeah, the tires have to be good too when you return it or they charge you for new ones.


That maybe be the case if you're a dope and pay what ever lease amount the dealer quotes. However, if you know what you're doing and know all the lease terms, it isn't as dire as you make it seem. Just about everything in the lease is negotiable.

Leasing is essentially paying the depreciation on the car plus interest. Yes, there are parameters that need to be adhered to. Honda Financial has a generous lease allowance at the termination. It used to be $1500 that went towards damage, bald tires, excess mileage etc...

 

[SatinSilver]

Most guys on the Accord forums that lease will buy the car at the end and sell it to make some money. Up to a few thousand dollars. Or take it to Carmax and have them buy it.

My neighbor leased a 2011 Camry right before the re-design came out for $159 per month. Meanwhile, a family member that buys new Camrys every 5 yrs and pays a lump sum of around $12,400 after trade in. So, $12,400/60 months = $206/month.

 

[JTK]

Originally Posted By: satinsilver
Most guys on the Accord forums that lease will buy the car at the end and sell it to make some money. Up to a few thousand dollars. Or take it to Carmax and have them buy it.


It's a similar situation with Honda Odyssesys. I originally leased mine for 3yrs, then took a low interest loan for the residual at lease end. You could easily sell them for more than the residual. Most makes/models I would never consider leasing, but Honda and Subaru are an exception IMO.

 

[ryan2022]

Yes, We're aware of the lease vs. purchase debate. There are a few more variable that work into the equation then I'll get into here.

The resale on Subarus is ridiculously high around there, especially near winter...unlike anything we've seen.

When we traded our CRV in even after ending the lease early, we made our down payment back. A buyout is also a good option, as they're usually low at lease end.

We'll see what happens tonight.

 

[JTK]

Originally Posted By: ryan2022


The resale on Subarus is ridiculously high around there, especially near winter...unlike anything we've seen.


Yep. Here too.

Retail on a basic 3yr/old Legacy is $18K. Buyout on mine after my 3yr/45Kmi lease is $14K, but obviously that $14K is only a steal if you hadn't been so financially irresponsible to lease it first.