Subaru Ascent Forum banner
1 - 11 of 11 Posts

·
Registered
Joined
·
49 Posts
Discussion Starter · #1 ·
Hello everyone,
In the past I've purchased my cars, but this time I will be leasing an Ascent. I understand the BASICS of leasing but don't know what a good deal is when I see it. One dealer gave me the following deal. This car is probably sold since I walked away from the deal, but who knows. I just want to see if it was good or not.
Originally I wanted a 2019 Subaru Ascent Abyss Blue Pearl (KCD-21) 8-Passenger with the following options OC6, 09U. But this is what he was able to find in the area that came close to what I wanted (and an acceptable color). If it's not a good deal what would be?

2019 Subaru Ascent Magnetite Gray Metallic (KCD-21) 8-Passenger with the following options OD1, OCD, OMP, OBZ, OMT, GAR, SCF
USB Charging Ports
Cargo Tray
All-Weather Floor Liners
Rear Bumper Cover
LED Upgrade Map & Reading lights

$1000 down 36 month Lease 12k miles
MSRP: $40,728
Purchase price: $36965 (Costco pricing) + 499 Doc fees
Residual Value: $23,912
Lease Payment:$535


Thank You.
 

·
Super Moderator
2019 Ascent Touring (CWP)
Joined
·
3,907 Posts
The best lease deal comes from first negotiating the lowest price for the vehicle prior to any leasing discussion and then a combination of highest residual value and lowest money factor (interest). It's best to never put any money down on a lease...it's not actually lowering your cost for the vehicle because it merely is pre-paying money you would otherwise be putting in the monthly lease payment with minimal decrease in actual cost. If you inadvertently destroy the vehicle early on, it's also money you will not recover. How taxes apply is different in each state. Here in PA, it's 6% sales/use tax on the monthly payment. In some other states, sales/use tax is paid up-front. Be sure you understand how it works where you live and whether or not that's reflected in the quoted lease payment.

I might be concerned here that the difference between the purchase price and the residual is only just a hair over $13K. If the $1000 is actually a down payment instead of covering just taxes and fees, well... $535 a month to cover that plus money factor plus any taxes seems a bit strange.
 
  • Like
Reactions: TSiWRX

·
Registered
Joined
·
689 Posts
^ That's an excellent analysis.

@dmsalanon, I started my lease in November with the same terms as yours (including down-payment), and am only $40 per month north of you..... in a Touring.

I agree with Jim_in_PA, something isn't quite adding up.

https://forums.edmunds.com/discussion/51351/subaru/x/2019-subaru-ascent-lease-deals-and-prices - That's the Edmunds 2019 Ascent Lease thread. Look there for this month's residual and money-factor numbers for your specific model and lease terms (usually, you'll only have to check the last few pages of the thread). If it's not available, register an account there and then post-up your requirements (trim level, seating configuration, and lease duration and mileage) for the moderators to get back to you.

The math is the math, as Jim_in_PA noted, and it won't lie to you.

Edmunds has a nice little online "lease calculator" (as does many other automotive sites), and you can use it to get a very good ballpark number:


Using the auto-fills should get you close, but if you take the time to enter some "real" numbers that the competing dealerships are giving you (i.e. purchase price) and plug in a few basic calculations, it should get you even closer. Alternatively, deep-dive into this column, and make your own spreadsheet: https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html .

Any which way you do it (and I did all three), those numbers should align pretty closely. These days, things tend to be pretty transparent - and it's pretty easy to see where the dollar amounts don't line up if something funny is going on int the background. One such area that the dealership can play with is the money factor, which, aside from being heavily influenced by your credit score as well as the entity financing the deal. While dealers may have a preferred relationship with one financing company, it doesn't necessarily mean that's their only source, and you may be able to get a better MF by going with another. The dealer's markup ("commission/reserve", or "buy/sell") also figures in, here, and it's of-course something that they can play with.
 

·
Registered
Joined
·
49 Posts
Discussion Starter · #4 ·
I just contacted another dealer... This is what he gave me.. Is this a good deal?

MSRP: $40389
Sale Price: $37421
Residual Value: $23425.62 (58%)
Money Factor: 0.000850
Interest Rate: 0.0008500*2400 = 2.04
Lease: $490.95 for 1000k down, 36 month, 12k Miles
$505.95 for 1st payment down, 36Month 12k Miles

Lease includes Tax Title Reg etc.
 

·
Registered
Joined
·
157 Posts
How taxes apply is different in each state. Here in PA, it's 6% sales/use tax on the monthly payment.
Jim, unless something has changed in the last couple of years, the PA sales tax on auto leases is 9%, not 6%. The presumed logic is that a lease is often just an installment purchase. Given the time value of money, the state charges a higher sales tax rate on leases (9%) than on outright sales (6%) as the tax takes longer to collect with a lease.
 

·
Registered
Joined
·
27 Posts
I had been looking to lease Ascent, but eventually decided to buy instead, because typically Subaru doesn't lease well (they don't have capable financial services). For other brands the 1% of MSRP (monthly payment, 0 down) is a typical indicator of good deal, but for Subaru, 1% would be very hard. I think 1.3% of MSRP might be more practical.

Neither quotes seems like a good deal to me. A few suggestions.
1) As @Jim_in_PA said, first try to push the sales price down before you talk about lease. For MSRP of $40k, you might be able to get it down to $36K, maybe further.
2) Negotiate for lower money factor. 2nd dealer seems to have a lower MF.
3) Do you have Subaru VIP voucher (you pay $60 to PHS membership to get it), or Subaru loyalty coupon? It could save you at least a few hundred.
4) Shop around.
 

·
Super Moderator
2019 Ascent Touring (CWP)
Joined
·
3,907 Posts
Jim, unless something has changed in the last couple of years, the PA sales tax on auto leases is 9%, not 6%. The presumed logic is that a lease is often just an installment purchase. Given the time value of money, the state charges a higher sales tax rate on leases (9%) than on outright sales (6%) as the tax takes longer to collect with a lease.
That's currently true as it turns out. I just looked it up and there is the standard 6% sales/use tax on the payment plus a 3% lease specific use tax on top of that. Thanks for helping with clarification for PA leases.
 

·
Registered
Joined
·
689 Posts
I just contacted another dealer... This is what he gave me.. Is this a good deal?

MSRP: $40389
Sale Price: $37421
Residual Value: $23425.62 (58%)
Money Factor: 0.000850
Interest Rate: 0.0008500*2400 = 2.04
Lease: $490.95 for 1000k down, 36 month, 12k Miles
$505.95 for 1st payment down, 36Month 12k Miles

Lease includes Tax Title Reg etc.

I plugged your numbers into LeaseHacker and a few other online calcuators (they've revamped the Edmunds calculator, and I don't like it nearly as much anymore). It just doesn't work out, at least not with your "lease includes TTR/etc. disclaimer." If it did - i.e. your actual out-the-door price was indeed $37421, then you'd be pushing the low end of the $400 range, particularly with $1K down.

Instead of asking "is this a good deal," you really need to start plugging your numbers into an online calculator yourself (and you can do this right in the face of your salesperson on your smartphone, tablet, or laptop, to show him that you mean business) - or, better yet, understand exactly what each number means so that you can actually drive a harder deal.

Just randomly playing with that calculator, a $490-ish figure pops up with a zero-dollar drive-off, at ~9% tax (on either the monthly payment or total lease) but zero other fees.

Something is not jibing up with the numbers you've been given. The residual and money-factor numbers both were "correct" for the month of May (now that it's June, you should get new numbers), but there's no way that's with all taxes and fees included. If you're truly driving off the lot with $1K out-of-pocket on an ~$37,500 loan, you should be getting a monthly that's on the low end of the $400-$450 range with the other numbers, and not be playing in the $450-$500 side of the pool.
 

·
Registered
Joined
·
49 Posts
Discussion Starter · #9 ·
Well the car he was trying to get us was sold, so he found this one that should be coming in next week.

Lease Payments $484.70
MSRP: $40967
Sale Price: $38006 (7.2% off MSRP)
Residual Value: $23,761 (58%)
Money Factor: 0.000850
Interest Rate: 0.0008500*2400 = 2.04
Government Fees: $320.86 (Title, Reg)
Doc Fees: $249
Acq Fee: $595
Capitalized Taxes $1125.70
Down Payment $1500 ($1000+ $500 Coupon from Subaru)
Taxes (NJ) 6.625%

Leasehackr Score: 7.1 Years
 

·
Registered
Joined
·
5 Posts
I had been looking to lease Ascent, but eventually decided to buy instead, because typically Subaru doesn't lease well (they don't have capable financial services). For other brands the 1% of MSRP (monthly payment, 0 down) is a typical indicator of good deal, but for Subaru, 1% would be very hard. I think 1.3% of MSRP might be more practical.

Neither quotes seems like a good deal to me. A few suggestions.
1) As @Jim_in_PA said, first try to push the sales price down before you talk about lease. For MSRP of $40k, you might be able to get it down to $36K, maybe further.
2) Negotiate for lower money factor. 2nd dealer seems to have a lower MF.
3) Do you have Subaru VIP voucher (you pay $60 to PHS membership to get it), or Subaru loyalty coupon? It could save you at least a few hundred.
4) Shop around.
this is very helpful! so you'd suggest to not lease a subaru? because im deciding whether to purchase or leaseand i dont know whats smarter for me to do financial wise
 

·
Registered
Joined
·
3 Posts
Well it has been 3 months but this thread makes me feel better. I didn't find much data on the lease prices for ascents.

I managed to snag a leftover 19 touring for 555/month lease 15K/36M with zero down. Well, I traded in my winter beater that they 'gave' me 3K for (Vroom offered 500), but it wasn't worth what the 3K I was offered.
 
1 - 11 of 11 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top