Leasing a new FR-S

[EBMCS03]

For this car the resale value "should be" very good! after 3 years you know every high school kid and their mother will want it. so if you keep it in good condition i'm betting you can sell it for $20K thats only a loss of $5K to drive it for 3 years. ok even if its $18K thats $7K to drive it for 3 years compared to leasing it for $12,400 for 3 years.

[fly2low]

Originally Posted by EBMCS03

For this car the resale value "should be" very good! after 3 years you know every high school kid and their mother will want it. so if you keep it in good condition i'm betting you can sell it for $20K thats only a loss of $5K to drive it for 3 years. ok even if its $18K thats $7K to drive it for 3 years compared to leasing it for $12,400 for 3 years.

$20k? In some parts of the country, the price will be that by the end of summer, december at the latest.

Just in case, i m wrong and residual is around 80% after 3 years (history making as never before), people can always sell the car for 20k, payoff toyota for the buyout $x and walk away with 20k-x cash. Nothing wrong with that either.

[EBMCS03]

Originally Posted by fly2low

$20k? In some parts of the country, the price will be that by the end of summer, december at the latest.

Just in case, i m wrong and residual is around 80% after 3 years (history making as never before), people can always sell the car for 20k, payoff toyota for the buyout $x and walk away with 20k-x cash. Nothing wrong with that either.

We'll see... I bought my MINI for $25K and sold it for $20k in 3 years. it was a hot item back then just like the FRS... you know kids will want this car. and when they continue to raise the base price on this car to like $27K at $18k-$20K it'll be a very convincing price with low miles

Look at a 3 year old tC. the base price on it right now is $19,400 a 2010 tC is going for $15,450 that's highest I saw on autotrader...

Average is $12-13K

2009 59K miles going for $13,995
2009 102K! miles going for $12,998
2010 93K miles $12,875

Either way you cant lose too much with this car. similiar to a toyota corolla. practically can drive it for free and sell it for $3K less! its crazy.

[fly2low]

That's the asking price, not the real private party transaction price.

[EBMCS03]

Originally Posted by fly2low

That's the asking price, not the real private party price.

I know. still saying and think the resale should be very good on these things. and I have to believe that the FRS demand is higher than the tC

[fly2low]

Originally Posted by EBMCS03

I know. still saying and think the resale should be very good on these things. and I have to believe that the FRS demand is higher than the tC

I agree that resale value is gonna be good unless subaru made a fundamental flaw on the engine or they will update the power signuficantly. I expect private party pricing to be between 15-17 in 2.5 years for good condition cars.

[EBMCS03]

For those who leased whats the residual value listed on your paperwork?

[dun3]

I say damn good deal! Although I wouldnt want that many miles on it, I'd probably bite because of price. Leasing isn't a bad option. Lower payments up front and apr, and residual value after makes up for it making it cost essentially what it's worth msrp wise. DO IT! And I think this car (kinda like the Supra) will keep a high resale value.. (i hope!)

[Braces]

If you plan on keeping the car longer than 5 or 6 yrs .... buy it and finance through Penfed. I lease all of my cars since I can write off a portion through my business. I also only lease for 24-36 months. I don't see the logic of leasing for 4 years. Also ... if the car is worth more than the residual at the end of the lease .... you can apply that additional amount to your next FR-S or BRZ with FI or the new Supra. That's my plan.

[ruskymx]

Originally Posted by EBMCS03

For those who leased whats the residual value listed on your paperwork?

The residual on my lease is $16,698. I signed all my paperwork on 6/1/12. The residual now is probably a few hundred dollars less because it's 7 months later. The base MSRP of the car did go up $300 and that will factor in to an increased residual value. The residual is a percentage of MSRP so higher MSRP, higher residual. We have an Asphalt 6MT in stock now so I can check to see what the residual on that on Monday to see what it is.

Ruskymx

[EBMCS03]

Originally Posted by ruskymx

We have an Asphalt 6MT in stock now so I can check to see what the residual on that on Monday to see what it is.

That would be interesting to know... see what Toyota "thinks" the car will be worth in 3 years.

[fly2low]

Originally Posted by ruskymx

The residual on my lease is $16,698. I signed all my paperwork on 6/1/12. The residual now is probably a few hundred dollars less because it's 7 months later. The base MSRP of the car did go up $300 and that will factor in to an increased residual value. The residual is a percentage of MSRP so higher MSRP, higher residual. We have an Asphalt 6MT in stock now so I can check to see what the residual on that on Monday to see what it is.

Ruskymx

Since there is no special, is mf for tier 1+ standard TFC 0.0020? It seems residual have dropped too . Yours was at very high 67. Now ALG posts it at 62

[ruskymx]

Originally Posted by fly2low

Since there is no special, is mf for tier 1+ standard TFC 0.0020?

It's actually down to .00180 now for Tier 1 +.

Here's the rates for Tier 1+, Tier 1, Tier 2, Tier 3, Tier 4, Tier 5, Tier 6, Tier 7

.0018, .0019, .00235, .00325, .0039, .0047, .0053, .0065

Ruskymx

[fly2low]

I did calculations based on the county (Orange 8% sales tax) and state (California, for fees) I live in to provide a comparison on what is available for me.

Base car $25350, add sales tax, registration, fees $27777. This also includes acquisition fees at $650, weighing at 2.5% (!!!) of the msrp.

Leasing 36 months, 12k mi/ year, using 0.0018 MF and 62% residual: $402 x 36.

Financing 72 months 2.49% with my credit union (I could do <60 months for 1.99% but I want to illustrate something here): $416

So if I run the scenario of having the car for three years, it seems that I will save about $500 by leasing it.

In three years, if I finance, I will have paid $416 x 36 and I will have about $15k in the balance. 62% of residual for $25350 is $15.7k. So, in three years I will not be underwater and might have a bit of equity. I will probably have even more if I sell the car to a private party. In short, I might get more than $500 but let's just say that it will be $500.

So, it is about even for both scenarios.

However, if I like the car and want to keep it beyond 3 years, then:

- If I started with financing, I will need to pay the other 36 x $416 to payoff the car.

- If I started with leasing, I will need to initiate a loan for $15.7K + 8% sales tax = about $17k. My current credit union used car interest rate for 36 months (to compare it apple to apple) is 2.49%. So, the payment is 3 x $490.

Doing a simple calculation, the difference is 36 x (490-416) = $2664, about 10.5% of the original MSRP. One thing I'd probably add is a gap insurance for my loan protection available from my credit union for $395 for the duration of the loan. So, the difference is $2664-395=$2269. You might need to add disposition fee (couldn't find it) if you decide to turn your Scion in.


Bottom line: for me personally, leasing in this case doesn't have an advantage over financing.

Note:
-Usually, the major advantage of leasing is cash flow (much lower payment) but in this case $14 is negligible (If I can't afford the $14/mo difference maybe I shouldn't get the car).
-If I run the numbers with $1000 rebate, the difference is about $35/mo.
-Lease ratio is at $402/1.08/25350*100 (see my earlier posting)= 1.47. Very poor and way below the 1.25 threshold. Another proof that leasing is not a good choice here.