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Hey guys, I just made the leap today, and leased a 2008 wrx.

MSRP was 26,566 - It was the non premium, with a rear spoiler, s1 sports trim, auto dim mirror, and shift knob.

I ended up doing 22,356 sale price with a 24k mile, 2 year maintenance warranty for oil changes, tire rotations, etc.

It was a 42 month lease, w/ 1500 down, and 272/mth payments, with a residual of %59. Also,It was a 12k per mile lease.

I think I got them pretty rock bottom on price, but would like some feedback.

-Thanks everyone.
 

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Welcome to the club and congrats on the new ride.

Any particular reason you went with a lease? Most of the time you'd be better off buying the car rather than leasing it.
 

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i would have bought but, you can negotiate at the end of the contact. you end up paying 100 more per mo. avg (no data to back that up but i went to a dealship and sat down and ran the numbers, and i was going to end up paying 102 more per month with a 3500 down) but at the end of the contract, you *get* to keep the car instead of giving it back. great deal imo. welcome to the club. no mods har har har
 

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I <3 the 08 WRXs!
But... although I know they have their place, I 've never been a fan of leasing for the following reasons:
1) It really just seems like a pay later instead of now, type arrangement. If I can't afford the payments now, why would I think I could afford them later.
2) I could never stay under the mileage allowances (even 15k). Especially, if I really enjoyed driving the car. It would seem most of why people lease is to get into a car they really like but could not otherwise afford. Then if you're constantly worried about going over miles, how can you really enjoy the car.
3) Leased vehicles require higher insurance coverage which means I would have to pay higher premiums.
 

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^ Precisely. What he said.

The only reason you'd want to lease a car is if you know you're going to want to get a new one every 3 years or so which means you're not planning on keeping the car. That way you're only paying for the time you're using it and not for the entire car.

Otherwise, if you're planning on keeping the car after the lease is over, then it's just downright retarded to lease it, and then finance the remainder at the end of the lease. You'll end up paying for 8 years or so for the stupid car, assuming that your lease is about 3 years and then the average 5-year car loan. That's just nutty.

But, to each his own. Enjoy the car.
 

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Here's my newbie 2 cents:

lease, and warranty = no after market upgrades, & doesn't want to keep for the duration.
My opinion is with a quality vehicle the real fun starts after you first 3/36...
 

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Congrats on the car! Any pictures?


Leasing can be a more cost effective option. I leased my last car, a Nissan Xterra. I got a 0% interest rate on the lease, and avoided paying the full sales tax since it was a lease. The payments on the lease were $275 or so per month and the residual was ~13k. There was also a $1000 (more?) cash back on the lease option. I put $0 down and it was a 36 month 12k miles/year lease.

For a used car loan, the rates were about 5% and I would have had to pay all of the sales tax up front. The payments on the loan were about $360/month for a 5 year loan. No cash back from Nissan on the loan. The loan balance after 36 months was ~$13k.

So I saved myself $85/month or $3000 over 3 years by leasing the car. If I had wanted to buy it, I could have just bought it at the end of the lease. I would have gotten it for $11k or so too and saved myself another $2000 because Nissan poorly calculated the residuals and the cars weren't worth the residuals at that time.

Sometimes it pays to make yourself an amortization (look it up if you don't know what it means) spreadsheet in Excel and figure out what it will really cost you in the long run, a lease isn't always more expensive.
 

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Meh, I'll stick to buying my cars. Call me old-fashioned, but having to agree to someone else's terms on a car (mileage, mods) that I'm paying money for is a problem for me. Plus I like the idea that I'm building equity in something, even if it is a depreciating asset. :)
 

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Congrats on the new car. Ignore the nay-sayers. I lease as well. Why in the world would I want to spend more per month for the same car, and I will never (ok cant say that) keep car over 3 years. Mileage is not an issue as you pay $0.15/mi you go over. In reality purchasing a car you need to keep the miles LOW because it reduces your resale value. Mods? Lease does not prevent moding, just go back to stock when you return the car.

For comparison:

2008 WRX Hach w/ Navi

$28,542 (invoice + dest)
$4500 down payment
42 months
15,000 mi/ year

$389/month
 

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SuperNova
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lease, and warranty = no after market upgrades, & doesn't want to keep for the duration.
My opinion is with a quality vehicle the real fun starts after you first 3/36...
+1
Leasing a car is like renting an apartment. Why would you fix up something that wasn't yours.

For me the fun starts after I sign the papers and turn the key. I'm not even to 3/36 yet :rotfl:.

Meh, I'll stick to buying my cars. Call me old-fashioned, but having to agree to someone else's terms on a car (mileage, mods) that I'm paying money for is a problem for me. Plus I like the idea that I'm building equity in something, even if it is a depreciating asset. :)
Exactly.

Mileage is not an issue as you pay $0.15/mi you go over.
1-2 miles isn't an issue, but translate that into thousands of miles and it gets expensive. I average about 15k-20k miles a year on my cars. I'm at 34k miles and June 19th is the 2 year anniversary date.
So:

20k miles (a year I drive) -12k miles (a year allowed) = 8k miles over a year

divide by 12 months = 666.667 miles/month

lease term of 42 months x 666.667miles/month = 28000 miles over at lease end. :eek3:

28,000 miles x $.15 = $4200 extra for "driving the car" :confused1

Applying it to the OP:

$22,356-$1500 down= $20,856

59% residual sooo...
$20856 x 59%= $12,305 remaining after 42months.

So $272 per month (no int rate specified well leave it out) x 42 months = $11,424.

soo $11,424 + $4200 for miles + $1500 down + $12,305 = $29,429 total price for your Base WRX, with 0% interest.


Or you coulda bought it for:

$1500 down, 4.9% financed, $22356 purchase price, $392.62 a month (unlimited miles), 60 month term paid a total of $25,057.20 and owned it.

What it all means? That $.15 a mile adds up quick. Don't go over mileage :rotfl:.
 

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Eh, I guess I'm not into the notion of having one long, continuous car payment for the rest of my life. Just not the kind of finance I was taught. But to each their own. :)

edit:And +1 on Jeremy's assertion about the mileage charge. It's foolish to treat that as trivial; it would add up really fast.
 

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$4200 and what would the car be worth given that excess mileage if you had to sell it? Would the depreciation be the same, greater, or less? The point is either way you have to worry about mileage, and most people DONT go over miles. If you know you drive excessively, then purchasing might be a better choice, or if you are me and can write off a portion of the lease payments, excess miles, maintenance, etc, then it doesn't make a difference.
 

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SuperNova
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Congrats on the new car. Ignore the nay-sayers. I lease as well. Why in the world would I want to spend more per month for the same car, and I will never (ok cant say that) keep car over 3 years. Mileage is not an issue as you pay $0.15/mi you go over. In reality purchasing a car you need to keep the miles LOW because it reduces your resale value. Mods? Lease does not prevent moding, just go back to stock when you return the car.

For comparison:

2008 WRX Hach w/ Navi

$28,542 (invoice + dest)
$4500 down payment
42 months
15,000 mi/ year

$389/month
$4200 and what would the car be worth given that excess mileage if you had to sell it? Would the depreciation be the same, greater, or less? The point is either way you have to worry about mileage, and most people DONT go over miles. If you know you drive excessively, then purchasing might be a better choice, or if you are me and can write off a portion of the lease payments, excess miles, maintenance, etc, then it doesn't make a difference.
OP scenario:

20,000 miles /year = 1666.667miles/month
x 42 months
=70,000 miles after 42 months.

Depreciation wise its worth about $2800 less (using an 04 wrx and kbb.com values for "good") but $4200-2800=$1400 ahead by buying.

kbb for 70,000 miles
kbb for 42000 miles
Thats of course not taking into account that I can write off the full sales tax amount on a new vehicle off of my taxes. So another $2283 would come right off the top the first year.

Your scenario:

Leased with 50% residual:

$28542 x 1.08 = $30825 Price + Tax

$389 a month x 42 months = $16338 + 4500 down = $20838 and you own nothing i.e thank you for renting, you now have nothing to drive.

$30,825 x 50%= $15412.5 is what you need to buy the car after 42 months with a 50% residual

If you bought it you'd be at $36250.50 and thats if your residual is at 50%

For fun 59% residual:

$30825 x 59%=$18186.75+$20838= $39024.75 at 59% :eek3:

AND THIS IS IF YOU DON'T GO OVER MILEAGE!

Bought:

$28542 x 1.08 = $30825 Price + Tax
$4500 down
30825-4500= $26325 financed
4.9%
60 months
Payment
$495.58

$495.68x60=$29740.80+$4500=$34240.80 after all said and done owned

Meaning I can drive it for 20 years and have no more lease payments. Its mine, I can blow it up if I want too, insure it for less more whatever.


I woulda gone this way for lower payment and resale, *shrug* to each his own I guess.

I have learned that a "good deal" is anything both parties are happy about, independent of price. ;)
 

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^^Fo sho. Tru dat.
 

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Purchasing payments are always higher than Leasing. I only pay for the residual of the car for the time that I have it, not the full amount of the car.
 

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Purchasing payments are always higher than Leasing.
Well of course. That's the only reason people get suckered into leasing. :tongue:
 

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SuperNova
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Purchasing payments are always higher than Leasing. I only pay for the residual of the car for the time that I have it, not the full amount of the car.
Well of course. That's the only reason people get suckered into leasing. :tongue:
That and essentially you get to drive a car that if you "bought" you may not be able to afford. AND after your lease is up, you get the privelage of starting all over again with a different car and more payments!!! YEA!!!!

For fun:

60 month buy term
42month lease
--------
= 18 months into your next 42 month lease by the time his car is paid off

total of 84 months ( [email protected] month lease) ([email protected] 60 month + 24 bank roll)

If the buyer after the car is paid off (60 month term to your 42 month lease, $495.58 payment vs $389 payment leasing)
put $495.58 a month in the bank for 24 months (time at which your next lease is up) at 4.9% return, hell have $13042.03 Cash in the bank and a paid off car, while you are now preparing to pay lease payments on new car #3. But you will be driving a "NEW" car to his 84month old car, and I guess there is some merit to it.;)
 

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This tread makes my head hurt lol.

I like leases. I don't do well with commitment.
 

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This tread makes my head hurt lol.

I like leases. I don't do well with commitment.
At last, we reach the root of the problem. :rotfl:

Though, I have to say that I think of a lease as being "more committed", I have to abide by someone else's rules, more so than in a purchase.
 
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