Help! I'm trying to lease a brz!

[kdmBRZ]

OP, why don't you contact Jin at Pacific Subaru in Torrance, CA...he's my good friend and tell him Steve (guy with white brz) referred you. He can give you a good deal.

[Kuarian]

I was looking to get around 300 ~ 350 per month. And thanks steve! I'll contact him!

[Kuarian]

Also i will most likely do a lease to buy program. What are your opinions about this?

[thill]

Originally Posted by Kuarian

Also i will most likely do a lease to buy program. What are your opinions about this?

You need to start by reading all the links that were provided here about leasing. There are pros and cons to leasing and it may not be best for you, and only you can know that. Start there. Make sure you know what you are getting into.

If you go to a dealer and say "I want to lease a BRZ but I have no idea what I am doing", is the equivalent to jumping into a shark tank after running through a brier patch naked with bleeding cuts all over your body....

[RobertPaulson]

Originally Posted by ashtray

Yes - in addition to built in interest rate, down payment(s), and the price the are leasing you the car at.

If you answer that question the dealer WILL ask, they will punch some numbers on a calculator and tell you they need $5k down, it's a 42 month lease, and the annual mileage is 10,000/yr, with a $0.40/mile overage.

They'll also charge you $2k over MSRP for the car.

But what can you say? They met the monthly number you wanted to pay, right?

this is one reason of many why i'll never lease a car.

[aznatama]

You always negotiate the lowest price BEFORE even mentioning the word lease. Do all negotiation over email, tell them you haven't decided, but looking at purchase. Dealers try to jack up price on leases since lower monthly payment overall, and most people don't know you can negotiate the selling price on a lease.

- Leasing is horrible for non-high priced luxury cars... I would read heavily on this before deciding to lease or not
- Residual is based on MSRP, to the lower your negotiated price is, the lower you pay overall for the lease.
- Essentially, the Bank buys the car from the dealership, then leases the car to you based on their calculated depreciation and profit margins. They base this off MSRP.
- Money factor x 2400 = approx "interest rate" on the lease. There is no interest on a lease, only money factor
- Bank may require GAP insurance to cover the remaining value vs actual value, which will make your insurance go up

350/mo payment is about what you'd pay for a purchase on a 60mo finance and ~5-8k down. This is a cheap car, if you need to lease to afford the monthly, it's probably out of your budget. Just sayin...

[Poodles]

Originally Posted by Jonsey

For what it is worth, when I was looking at leasing the rates for a BRZ were substantially higher than the rates for a FR-S.

Which at first glance would be normal because the car is more expensive. But the point of a lease is you're essentially paying the depreciation and the FRS is depreciating much worse than the BRZ in the market. In essence the BRZ should be cheaper because of this.

Originally Posted by Kuarian

Also i will most likely do a lease to buy program. What are your opinions about this?

You're throwing your money away because you're not putting any money towards principal. Lease should be seen as essentially a long loan. While yes, the car will be cheaper at the end of the loan, but it's still going to be the price of a 3 year old car (or however long your lease is).

Leasing is nice to "afford" a nice fancy car for little money (see: BMW)

[aznatama]

Fwiw, you can lease a BMW 2 series for about 330/mo... So why would you lease a brz for the same price?...

[pinski]

Originally Posted by Kuarian

Also i will most likely do a lease to buy program. What are your opinions about this?

If you intend on eventually buying, probably will do better to buy now. Don't know how good your credit is, but right now Subaru is doing 0% for 72mos on new 2014 BRZ's. If you get a new BRZ Premium for $2k off MSRP, the price would be about $23,500 plus tax, tag and fees. In NC, that would be about $24,500 out the door. Financed at 0% for 72mos that's $340/mo.

Originally Posted by aznatama

You always negotiate the lowest price BEFORE even mentioning the word lease. Do all negotiation over email, tell them you haven't decided, but looking at purchase. Dealers try to jack up price on leases since lower monthly payment overall, and most people don't know you can negotiate the selling price on a lease.

- Leasing is horrible for non-high priced luxury cars... I would read heavily on this before deciding to lease or not
- Residual is based on MSRP, to the lower your negotiated price is, the lower you pay overall for the lease.
- Essentially, the Bank buys the car from the dealership, then leases the car to you based on their calculated depreciation and profit margins. They base this off MSRP.
- Money factor x 2400 = approx "interest rate" on the lease. There is no interest on a lease, only money factor
- Bank may require GAP insurance to cover the remaining value vs actual value, which will make your insurance go up

350/mo payment is about what you'd pay for a purchase on a 60mo finance and ~5-8k down. This is a cheap car, if you need to lease to afford the monthly, it's probably out of your budget. Just sayin...

Agree on all counts, but then again, I've never leased a car .

[CoupedUpSubie]

I would recommend negotiating a price and letting them know how much you can put down. If you can get the price down to $26k then put $4k down and get a 3% interest rate you will be paying $340 a month on a 72 month loan. Everyone I know who has leased says they will never do it again.

[aznatama]

Originally Posted by CoupedUpSubie

I would recommend negotiating a price and letting them know how much you can put down. If you can get the price down to $26k then put $4k down and get a 3% interest rate you will be paying $340 a month on a 72 month loan. Everyone I know who has leased says they will never do it again.

With a 72mo loan on only 4k down, you'll be underwater on the loan for a while. I would highly suggest saving up at least 35-50% down for a car purchase to avoid higher gap insurance premiums.

Leasing makes sense for a business expense deduction. Other than that, it makes nearly no sense at all unless you like paying a premium for convenience (ie - changing luxury cars every 3 yrs).

[CoupedUpSubie]

Originally Posted by aznatama

With a 72mo loan on only 4k down, you'll be underwater on the loan for a while. I would highly suggest saving up at least 35-50% down for a car purchase to avoid higher gap insurance premiums.

Leasing makes sense for a business expense deduction. Other than that, it makes nearly no sense at all unless you like paying a premium for convenience (ie - changing luxury cars every 3 yrs).

Have you ever heard the term example. At 340 a month for 72 months it comes down to 24,480, add in the 4k down and you have 28,480. That is what I paid out the door due to the sales tax in my state. Not a horrible deal if you ask me.

[aznatama]

Originally Posted by CoupedUpSubie

Have you ever heard the term example. At 340 a month for 72 months it comes down to 24,480, add in the 4k down and you have 28,480. That is what I paid out the door due to the sales tax in my state. Not a horrible deal if you ask me.

Good overall price, but a shorter term would give you a lower interest rate usually, and consequentially a lower overall cost. Additionally, depending on the market, you may owe more on your car than it's worth. This is unlikely for the BRZ right now, but it's a general risk, and thus may require that you get gap insurance coverage.

Not saying you didn't get a good deal, looks like you got a good deal, but that's not the case for most people.

[mav1178]

Originally Posted by aznatama

Leasing makes sense for a business expense deduction. Other than that, it makes nearly no sense at all unless you like paying a premium for convenience (ie - changing luxury cars every 3 yrs).

Leasing makes a lot of sense if you have:
- business expense writeoff
- move around a lot for work (2-3 year contract work)
- potentially live in area(s) where having a car isn't ideal
- don't want to deal with upkeep of used car as it ages
- don't want to deal with resale or trade-in

I'd lease all day if I didn't care for the race track.

-alex