[TampaSTI]

hey all, im thinking of leasing a new 2008 STI(on the fence about to purchase). This will be my first lease. was thinking about doing it for 36 months 20k miles per year and $2000 down.......does any have any suggestions for me as to what to watch out for and maybe a ball park of what my payment would be? Thanks a ton!!

[upncummr]

Here's a link with useful info on auto leasing.

Car Leasing FAQs | Read Auto Leasing Questions & Answers at Automotive.com

Gary

[TampaSTI]

Originally Posted by upncummr

Here's a link with useful info on auto leasing.

Car Leasing FAQs | Read Auto Leasing Questions & Answers at Automotive.com

Gary

Thanks Gary good info


How do I calculate a car lease payment?
Don't worry. You don't need to be Archimedes to figure out a car lease payment. There a few numbers you will need to find out in order to plug them into a simple equation. Once this is done, the result will tell you what your monthly payment will be. These are numbers that can be made available by a dealer, in accordance with the Federal Consumer Leasing Act. (The dealer is not required to give you the money factor, however, you can get it if you are persistent. The money factor is roughly equivalent to an APR divided by 2,400.)

First, we need to figure out the monthly depreciation of the vehicle. To find this, subtract the residual value of the vehicle from the cap cost. Take the difference and divide it by the number of months you plan to lease the car. This calculates the monthly depreciation.

Next we will tackle the monthly finance charge. This time add the residual value and the cap cost, then multiply that by the money factor. This results in the monthly finance charge.

Now, simply add the monthly depreciation and the monthly finance charge, and you have calculated your monthly car payment.

[jph]

are you planning to mod the car? are you planning to keep it after the 36 months ?
if either one is yes, don't lease.


J.

[GilMikalian]

well, to give you a base line....I leased my MX-5 (20K car price) for $1500 down and 250+tax per month for 24months, 12K miles/year, which is a pretty good deal. for 20k miles per year, you're looking at pre-paying for your miles since no standard lease i've ever heard of has a 20k mile/yr option. also, you may be surprised to find that sometimes, a lease will have lower payments when leasing for 24 months instead of 36 or 48. You also need to decide on a trim level since that can be a $3.8K swing in the price of the car (capitalized cost). As for good starting points, check out edmunds.com incentive and rebates page where they list the current lease promos. You can usually do better than the promo so look to them as good starting points as opposed to the goal. There are regional differences but there seem to be some reasonable payments considering the price of the car.

Also, unlike buying, DO focus on the payments and the down. That's all you have to worry about so don't even get into trying to find out the money factor and residuals. Just give them a deal you'll be happy with and let them work the numbers to hit your bogey.

[austinpike]

Originally Posted by GilMikalian

... don't even get into trying to find out the money factor and residuals.

If you want to decide if a lease is a "good deal" or not, you absolutely have to find out the money factor and residuals. Run all the numbers and compare it with what it would cost you to finance and then sell/trade the car after 3 years (or whatever term you are looking at.) Typically the lease will cost more but depending on what kind of incentives the manufacturer is pushing, that may not always be the case.

[Gray08]

I can't see any real benefit to leasing, other than possibly having a lower monthly payment. But if finances are tight enough to where the difference between a lease payment and a regular car payment is a make or break issue, then it might be wise to consider a less expensive vehicle.

If you buy the car and keep it for the long term (10 years or more), you can eventually get yourself out of the "car payment rut". Once the car is paid off, continue to make payments to your savings account. Then when you buy the next car, you can put half down and pay it off even faster. Keep doing that until you can pay cash for your cars and be completely payment-free, and it will have a big, positive effect on your finances. Leasing is one way to always stay in the payment rut.

[Kevin]

Leasing is great for those:

1) that can earn a greater return with other investments than the cost to lease/finance the car;
2) that can write off a lease payment as an expense; or
3) that have cash flow and don't have or don't want to sink a huge wad of cash into a depreciating asset.

[GilMikalian]

I still say a good jumping off point are the current leases being offered by the SOA. Try to trim some from the down and the payments for the terms you want and you're doing better than 99% of the people out there.

[Gray08]

Originally Posted by Kevin

Leasing is great for those:

3) that have cash flow and don't have or don't want to sink a huge wad of cash into a depreciating asset.

With leasing, you are still sinking a huge wad of cash into a depreciating asset. In fact, that's the whole point of leasing: To pay for the depreciation (and then some) on a car that you don't even get to keep when the term is up.

When you also consider mileage restrictions (and penalties), and that you still have to pay for any damages they find when you return the car, I think it's worse than owning the car. You're actually driving someone else's car and completely responsible for it.

Despite that, leasing is still a more attractive option to some people. It doesn't even need to be the most financially sound decision in order to be the right decision. Some people just prefer to only drive cars that are 2 years old or less, and leasing is less hassle for them. There's nothing wrong with that.

[dr.sti]

Do not lease if you are going to drive 20k per year!!

[Kevin]

Originally Posted by Gray08

With leasing, you are still sinking a huge wad of cash into a depreciating asset. In fact, that's the whole point of leasing: To pay for the depreciation (and then some) on a car that you don't even get to keep when the term is up.

When you also consider mileage restrictions (and penalties), and that you still have to pay for any damages they find when you return the car, I think it's worse than owning the car. You're actually driving someone else's car and completely responsible for it.

Despite that, leasing is still a more attractive option to some people. It doesn't even need to be the most financially sound decision in order to be the right decision. Some people just prefer to only drive cars that are 2 years old or less, and leasing is less hassle for them. There's nothing wrong with that.

I would rather keep the money and invest it and pay it out over the course of a few years than sink it in at the front end.

[jtsherri]

A wise man once told me: If at all possible, lease anything that depreciates.

Mind you, I'm currently financing my STi; however, that was only because I had intentions of modding the crap out of it. I'm likely going to lease my next car, but that's only because I'll end up leasing it as a daily driver with something else that I'll purchase outright as a side project.

Subscribed to see if anyone else chimes in that has leased their STI (hopefully an '08 driver)...

[BuzSTid]

given the current financial upheaval in the US, i'd try for 0% purchase financing.
the only one who wins with the leases are the finance companies (and they make lots on your back). a car may be a depreciating purchase, but if you want to keep it for a while Subaru's do seem to hold their value.
in Canada financing is higher but we're allowed to pay the loan out anytime after the first payment, no penalties

just my 2 cents (@par)

[D0WNxSH1FT]

For reference:

2008 WRX w/ Navigation and Sirius - $28,542 (invoice + destination)
42 months
15,000 mi/year
$4,500 downpayment (approx)
$389/month

You *CAN* mod a leased car. You just have to put it back together when you return the car and obviously your warranty is as useful as if you owned it when modified.

I prefer to lease since it keeps monthly costs down and I have commitment issues and will not keep it longer than 3 years. If I go over in mileage it is just $0.18/mi over and I don't have to worry about resale value.