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Old 08-30-2010, 12:53 PM   #1
Ashr
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Default Leasing a new WRX?

Thoughts on leasing

I want to know what you all think of leasing your car instead of buying.
I test drove a new 2011 WRX on Saturday and loved it. But I think I could only afford it if I sold my car I have now. Paid off my loan and then leased the new WRX. I wanted to know who has done this and what do you think about it? It would be a huge help to me!!!


Thanks ~!
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Old 08-30-2010, 01:35 PM   #2
Drakar
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Leasing works if your smart about it, weight out the options and penalties between both.

personally I think a low year count on a lease lets you differ a large payment till later. letting you take advantage of that large amount of money you would have put to buy it out and apply it to something else that potentially will make you money.


course owning your car outright also means you have the potential to get deals on total price. Walk in with cash (ie cash or finance not thru subaru/toyota) and they will be more likely to give you a better deal.

If say a new WRX will cost you 36-38k total (tax in blah thats an estimate) if you put down 10k and lease for 2 years, your payments are sub 200 a month and you can use the 28k you would have spent on something like investments for 2 years hopefully making you more money they you pay interest wise and your on top and in 2 years you'll still be able to buy the car out and have made money, vs spending 38k on the car (via loan or cash) you are losing from day 1.
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Old 08-30-2010, 02:00 PM   #3
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Plus if you are owing a business or you have BC business licence, leasing should be a better option.
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Old 08-30-2010, 02:11 PM   #4
notjustforshow
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Leasing is a good option,

but it sounds like you are still paying a loan on your current car?

So you would have to sell your car, pay the balance of the loan, then enter a lease agreement?

Sounds like you are stretching your dollar just to get the car?
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Old 08-30-2010, 02:13 PM   #5
Ashr
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That makes some good points. Now I dont have all that kind of money to start with. So there would be no way I could buy a new WRX anyways. I could spend around 20k from my loan?

Thats why I was looking into a lease. I could afford 400.00+ a month on a payment but not 500.00. This seems the only way I could get into a new one..
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Old 08-30-2010, 02:15 PM   #6
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I do not own anything like that. I am 25 and make around 52k a year.
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Old 08-30-2010, 02:18 PM   #7
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Yes, I would sell my car and pay off my loan. I could sell it for more then I have left to pay as well. I might just try and find a used WRX that is not beat on but that seems hard to do lol. I am just trying to see the pro's and cons at this time.
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Old 08-30-2010, 03:20 PM   #8
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Have you considered looking at a slightly used one? Might be fiscally more feasible...

Edit - way to read me, good work...
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Old 08-30-2010, 03:31 PM   #9
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Quote:
Originally Posted by Ashr View Post
Thoughts on leasing

I want to know what you all think of leasing your car instead of buying.
I test drove a new 2011 WRX on Saturday and loved it. But I think I could only afford it if I sold my car I have now. Paid off my loan and then leased the new WRX. I wanted to know who has done this and what do you think about it? It would be a huge help to me!!!


Thanks ~!
This is my 2nd time leasing a Subaru.

You should prepare to order your 2011 WRX ASAP, local dealers might run out of stocks soon.

Of course you do not want to wait until Christmas

Imprezas/WRXs/STis in Canada have one of the best (if not the best) residual values among all Japanese makes, so leasing is quite a good option IMO.

Of course, if you are planning to keep the car for a long time, you should consider other options.
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Old 08-30-2010, 06:11 PM   #10
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you realize that when you lease, you don't own the car. you have to ask yourself what you are going to do when the lease is up. if you return it, you just spent the last 2-3 years paying for nothing, and the car has to be return to stock condition when you return it. if you decide to buy it out, are you going to afford the buy out later on.
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Old 08-30-2010, 06:18 PM   #11
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Quote:
Originally Posted by bender View Post
you realize that when you lease, you don't own the car. you have to ask yourself what you are going to do when the lease is up. if you return it, you just spent the last 2-3 years paying for nothing, and the car has to be return to stock condition when you return it. if you decide to buy it out, are you going to afford the buy out later on.
Also, it sounds like you have a car loan, which you are paying off to get a lease. I'm not a number expert but that sounds like a bad decision to me.

BUT OP did take the trouble to post income, and assuming with minimum financial responsibilities, you should be able to more than afford a 2011 WRX on finance not lease.

That being said there is nothing wrong with a lease, just need to know that in the end it isn't for everyone.
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Old 08-30-2010, 06:50 PM   #12
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It's not black and white. Do the math, figure out all the financial inn's and out's, figure out what you want to do with the car, and if you want to keep it longer than a regular lease period and then make your decision.

My father never believed in leasing because he didn't like not owning it. However, it all boils down to what it's going to cost you.

When you lease, you rent, you put $ down and have a monthly payment. Therefore, it's pretty easy to figure out the true cost of renting that car for the lease period.

However, if you buy, you own, if you don't have the full capital to buy, then you are still borrowing and have payment. The only real “unknown” is the re-sale value when you sell it.

Aside from all the details the bottom line is this. Lets use a 3 year lease vs. buying and selling after 3 years (Apples to Apples)

3 Year Lease: Costs you $15,000 total.

Buy and Sell after 3 Years: Costs you $16,000 total.

You were better off to lease by $1,000

However, if after three years:

Lease: Cost you $16,000
Buy/Sell: Costs you $15,000

You were better off by $1,000 to buy/sell over leasing.

However, you really won`t know which way was better until AFTER, so does it really matter in the end… (Why is my keyboard puting in an … instead of a question mark…)

I’m kind of dealing with the same issue myself. I was thinking about buying a 2008/9 five door STI.

But would it just be better to lease a 2011 STI instead???

I haven’t looked into it enough to know yet….

Last edited by jaydow11; 08-30-2010 at 11:17 PM.
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Old 08-30-2010, 08:00 PM   #13
cococly
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Quote:
Originally Posted by bender View Post
you realize that when you lease, you don't own the car. you have to ask yourself what you are going to do when the lease is up. if you return it, you just spent the last 2-3 years paying for nothing, and the car has to be return to stock condition when you return it. if you decide to buy it out, are you going to afford the buy out later on.
Well, IMO,it doesn't matter if I do OWN the car or not. I am the one who is driving it during the lease terms, and you can BUY the car off the lease anytime, or at the end of the lease.

If the car was sadly in a major accident,even if the car was repaired, the residual value was going to take a dive. I would just return it and let the leasing company (Toyota Finance) to suffer the lost.

Perhaps, because I only plan to keep a new car for a couple of years, that's why I like leasing?
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Old 08-30-2010, 11:21 PM   #14
jaydow11
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Quote:
Originally Posted by cococly View Post
If the car was sadly in a major accident,even if the car was repaired, the residual value was going to take a dive. I would just return it and let the leasing company (Toyota Finance) to suffer the lost.
So never having leased before, how does this work? If you are in a major accident, you have to get it repaired obviously, but what happens at the end of the lease?

I think one of the major problems with leasing is the fact that you really can`t get a deal on the price of the car. When you lease, you pretty much have to pay full retail. If you pay with cash, you can usually get a better price...

Has anyone been able to negotiate a good price off sticker on a lease?
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Old 08-30-2010, 11:49 PM   #15
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Quote:
Originally Posted by jaydow11 View Post
So never having leased before, how does this work? If you are in a major accident, you have to get it repaired obviously, but what happens at the end of the lease?

I think one of the major problems with leasing is the fact that you really can`t get a deal on the price of the car. When you lease, you pretty much have to pay full retail. If you pay with cash, you can usually get a better price...

Has anyone been able to negotiate a good price off sticker on a lease?
Yes, you can negotiate even when you are leasing. I got it down to 500 over the invoice price when I was leasing my WRX.
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Old 08-31-2010, 12:58 AM   #16
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Everybody's reason is different. My reasons were (a) I can write it off since I have an ecommerce business. (b) Was in the time period of purchasing a home, which a lease looks better than a finance or car loan to banks. Do your math as some as suggested, and see which one is a better outcome. I got the monthly payment down to a little bit over $500. Some people may say it's a waste of money giving it back at the end, you just paid for nothing but its not if you sell it months before your lease is up. Then it wouldn't be much different from a financed car that depreciated. I for one, will definitely not give my car back at lease end cause I will get raped on my over usage of KM's. Plus if I want to do a buy out, my residual is something like $16,000.

I would suggest only doing this if the money you would get from your sale will cover all of your loan. If it does cover and you have money to put down on a car, see if the dealer would accept a security deposit over a down payment. With a security deposit, you'll lower your monthly payment and at the end of your term you'll get your deposit back. Assuming you don't give it back with overusaged KM's or dings galore (which is what they rape you on anyways)

The one very bright spot I found with leasing is, when you give the car back, it becomes their problem, especially if there's a mechanical, electrical, etc, and you walk away with your hands clean. My sister did that with her pontiac grand prix, that piece of garbage had a coolant issue and would've costed her like $2500 to fix it (this is with like 25,000km's on the car). She waited the last few months, then dumped the car on the dealer and she walked away without having to deal with the issue.
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Old 08-31-2010, 02:21 AM   #17
Drakar
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Quote:
Originally Posted by jaydow11 View Post
So never having leased before, how does this work? If you are in a major accident, you have to get it repaired obviously, but what happens at the end of the lease?

I think one of the major problems with leasing is the fact that you really can`t get a deal on the price of the car. When you lease, you pretty much have to pay full retail. If you pay with cash, you can usually get a better price...

Has anyone been able to negotiate a good price off sticker on a lease?

yup, everything is negotiable. because if you want the car and lease is your option they WANT you to lease so they'll play otherwise, why would you just go to another deal that will give you what you want and then THEY get your money.
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Old 08-31-2010, 02:39 AM   #18
Ashr
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Thanks everyone

You all have gave me a lot to think about.. lol
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Old 08-31-2010, 04:54 AM   #19
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Quote:
Originally Posted by jaydow11 View Post
So never having leased before, how does this work? If you are in a major accident, you have to get it repaired obviously, but what happens at the end of the lease?

I think one of the major problems with leasing is the fact that you really can`t get a deal on the price of the car. When you lease, you pretty much have to pay full retail. If you pay with cash, you can usually get a better price...

Has anyone been able to negotiate a good price off sticker on a lease?
Nothing happen to your lease if the car had been through major repair, you just hand over the keys and go. (assuming that the car was fixed professionally and leagally)

For my current lease, I got $35/month off regular payment, which is pretty good
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Old 08-31-2010, 03:12 PM   #20
Ashr
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I am really leaning to a lease.. just still need to think about all the pro's and cons

So I can buy my lease out at the end for the remaining balance?
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Old 08-31-2010, 03:15 PM   #21
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Yes and you can negotiate that down as well.
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Old 09-01-2010, 01:06 AM   #22
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Quote:
Originally Posted by notjustforshow View Post
Yes and you can negotiate that down as well.
Ooo..didn't know that. Good to know!
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Old 09-01-2010, 01:24 AM   #23
Whistlerfish
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Where were you able to test drive the 2011 WRX? I still have to do thet before I pull the trigger on buying one.
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Old 09-01-2010, 01:59 PM   #24
Ashr
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Here in kelowna at Subaru !! It was really perddy !! lol
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Old 09-01-2010, 02:08 PM   #25
Drakar
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you need to show pics of the fact you bought it and make people jealous and happy for you
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