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Hi folks - appreciate your guidance in advance! I'm so impressed with the responses in this community.
I'm working on my 6th Subaru, after a handful of WRXs, 3 Foresters (XTs and Sport), and now up to an Ascent. Interesting how the circle of life might take me back thru the model lineup and put me into a BRZ one day :-D
New to leases, so forgive me for my novice questions. I've been furiously studying various terms and gotchas on this forum and other car sites.
The current lease deal I'm working on is:
So the net point of the above is that, I should have equity coming into this lease deal based on the trade value.
The terms of the lease are written as:
The dealer included some verbiage in the email which leaves me perplexed:
Thank you for reading and responding and I do appreciate in advance any time you to spend to help me out.
thx!
I'm working on my 6th Subaru, after a handful of WRXs, 3 Foresters (XTs and Sport), and now up to an Ascent. Interesting how the circle of life might take me back thru the model lineup and put me into a BRZ one day :-D
New to leases, so forgive me for my novice questions. I've been furiously studying various terms and gotchas on this forum and other car sites.
The current lease deal I'm working on is:
- 36/15k loaded up Touring with MSRP $47391
- trade in (2019 Forester Sport; clean condition, ~13k miles) with a payoff amount ($10,800)
Sale Price: $43,296 (~8.6% discount, deal seems off already; can be made up for via higher trade value and other rebate/cash)
Trade value: $23,500 (about $4,000 under private party, low but probably avg for how dealer trade-ins go)
Trade payoff amount: ($10,800)
Net Trade Allowance: $12,700
Rebate: $500 (assume this is loyalty rebate, I have another $500 from SOA I'll look to add here, no luck yet getting $1000 build discount)
Doc Fee: ($175) (seems standard)
Advanced Payment: ($221.47) (first month)
Total Cap Reduction: $12,978.53 (what is this? It doesn't seem to come from trade+rebate-docfee-advancedpayment)
So the net point of the above is that, I should have equity coming into this lease deal based on the trade value.
The terms of the lease are written as:
Monthly Payment: $221.47 (this seems high given that I have equity coming in)
Term: 36 mos
Mileage: 15,000
Residual Amount: $25,117.23 (this seems low but maybe this is a fixed value from Subaru?)
Money Factor: .0007% (I guess I'm OK with this but in the current climate, might have expected lower)
The dealer included some verbiage in the email which leaves me perplexed:
I have no clue what an L&M fee is and why it is 1.5% of a sale price, nor did I really expect Sales Tax to be an actual thing being leveraged as part of the deal - I'm in Texas if that's relevant.On the lease we have some tax credits and using them on this Ascent lease so, you really won't pay any sales tax at all except for the L&M fee which is 1.5% of selling price which is still saving you approximately $600 on sales tax.
Thank you for reading and responding and I do appreciate in advance any time you to spend to help me out.
thx!