STi Leasing Update: STi leases are available!
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STi Leasing Update: STi leases are now available!
Fellow STi leasing advocates,
With the first of the month passing I decided to run my monthly research into potential leasing availability and figures against the STi. To date within various threads several others folks have posted information both conflicting (no STi leases), incomplete and/or based on WRX quotes, as well data that has remained unsubstantiated (aka no confirmed proof!). Well I now have new and credible leasing information for those interested in leasing an STi, for whatever reason they might have whether it business (me) or personal.
For those not interested in leasing an STi then stop reading now as this post & info is not for you.
Please do not flame me with negative opinions or personal sob stories about past leasing issues.
The following are the results of my latest research;
* LeaseCompare.com
I referenced third party leasing services provider 'LeaseCompare.com' which has been providing said services for a good while and is known amongst the BMW forums I participate in to be reliable. Up to now they have not had any info toward the STi (I called them several times in the past to verify their website was up to date). As of today though the web site has been revised to _include_ leasing numbers & residual numbers for the STi in specific. The numbers of course vary based on your FICO credit score. The figures quoted to me were for an STi sold at an MSRP of $31,545 with zero ($0) down/cap. cost reduction and a mileage of 12K/year at a duration of 36 months:
$518/mo. (39 month 'Special') with a money factor of 0.00196, which equates to an APR of 4.704%, including a mileage penalty of .18/mile, a disposition fee of $395 and residual value of $15,773 (equating to 50%) with no security deposit monies required.
Now of course extending the mileage increases the monthly fee and/or increasing the duration of the lease reduces the monthly fee. Go to their site and play around with it to see what best fits your budget and preference. Keep in mind though that your individual FICO score directly affects the money factor/APR you might be quoted and actually receive.
* Dulles Subaru
About 30 days ago I contacted the finance manager at Dulles Subaru which is located locally in Leesburg, VA. At that time the especially helpful & informative manager indicated that no figures had been released by Chase Manhattan or SOA and as such they had no direct options. She did offer a secondary 'Balloon Payment' option which at the time seemed odd to me and following a subsequent review with my accountant he too thought it strange for an automobile acquisition. This balloon payment has option has since been introduced to me by three other Subie dealers so maybe its some new thing going around. More details on that offering can be found via my previous post.
Okay I got through to 'Paulina' at Dulles who was the same person I talked with last month about the 'balloon' leasing program. Today she provided me with the following best case scenario figures as based on a 'preferred' FICO rating;
24 mo. -> 57% residual @ 0.00249583 money factor (5.99% APR)
36 mo. -> 51% residual @ 0.00249583 money factor (5.99% APR)
48 mo. -> 45% residual @ 0.00249583 money factor (5.99% APR)
Not bad, not great, not as favorable as the quote from LeaseCompare.com.
* Heuberger Motors Inc.
Ever determined upon arriving home around 9PM I decided to try a dealer in a different time zone knowing they would still be open for business.
I went to Subaru.com and looked up Colorado as I have a client in Colorado Springs (totally scientific selections here) and rang 'Tom' at Heuberger Subaru/Volkswagon. A very cordial fellow he was and he explained that he had not yet received the numbers for either Subaru or Volkswagon this month and apologized profusely for not knowing more. He seemed sincere as I explained to him the purpose of my 'project' and he wished me luck.
I don't know this guy, but if I were in Colorado I think I might stop by to talk with them as the experience was unusually pleasant.
* Santa Monica Subaru, Mazda, Lincoln, Maserati
Again I visited the Subaru.com website dealer listing and this time I picked Santa Monica, California only because I like the name 'Monica'. How's that for scientific?! Anyway, after being transferred four times I finally got through to the finance manager. The numbers he quoted me were the following;
24 mo. -> 60% residual @ 0.00210 money factor (5.04% APR)
36/39/42 mo. -> 52% residual @ 0.00225 mf. (5.4% APR)
48 mo. -> 46% residual @ 0.0022 mf. (5.28% APR)
...continued
With the first of the month passing I decided to run my monthly research into potential leasing availability and figures against the STi. To date within various threads several others folks have posted information both conflicting (no STi leases), incomplete and/or based on WRX quotes, as well data that has remained unsubstantiated (aka no confirmed proof!). Well I now have new and credible leasing information for those interested in leasing an STi, for whatever reason they might have whether it business (me) or personal.
For those not interested in leasing an STi then stop reading now as this post & info is not for you.
Please do not flame me with negative opinions or personal sob stories about past leasing issues.
The following are the results of my latest research;
* LeaseCompare.com
I referenced third party leasing services provider 'LeaseCompare.com' which has been providing said services for a good while and is known amongst the BMW forums I participate in to be reliable. Up to now they have not had any info toward the STi (I called them several times in the past to verify their website was up to date). As of today though the web site has been revised to _include_ leasing numbers & residual numbers for the STi in specific. The numbers of course vary based on your FICO credit score. The figures quoted to me were for an STi sold at an MSRP of $31,545 with zero ($0) down/cap. cost reduction and a mileage of 12K/year at a duration of 36 months:
$518/mo. (39 month 'Special') with a money factor of 0.00196, which equates to an APR of 4.704%, including a mileage penalty of .18/mile, a disposition fee of $395 and residual value of $15,773 (equating to 50%) with no security deposit monies required.
Now of course extending the mileage increases the monthly fee and/or increasing the duration of the lease reduces the monthly fee. Go to their site and play around with it to see what best fits your budget and preference. Keep in mind though that your individual FICO score directly affects the money factor/APR you might be quoted and actually receive.
* Dulles Subaru
About 30 days ago I contacted the finance manager at Dulles Subaru which is located locally in Leesburg, VA. At that time the especially helpful & informative manager indicated that no figures had been released by Chase Manhattan or SOA and as such they had no direct options. She did offer a secondary 'Balloon Payment' option which at the time seemed odd to me and following a subsequent review with my accountant he too thought it strange for an automobile acquisition. This balloon payment has option has since been introduced to me by three other Subie dealers so maybe its some new thing going around. More details on that offering can be found via my previous post.
Okay I got through to 'Paulina' at Dulles who was the same person I talked with last month about the 'balloon' leasing program. Today she provided me with the following best case scenario figures as based on a 'preferred' FICO rating;
24 mo. -> 57% residual @ 0.00249583 money factor (5.99% APR)
36 mo. -> 51% residual @ 0.00249583 money factor (5.99% APR)
48 mo. -> 45% residual @ 0.00249583 money factor (5.99% APR)
Not bad, not great, not as favorable as the quote from LeaseCompare.com.
* Heuberger Motors Inc.
Ever determined upon arriving home around 9PM I decided to try a dealer in a different time zone knowing they would still be open for business.
I went to Subaru.com and looked up Colorado as I have a client in Colorado Springs (totally scientific selections here) and rang 'Tom' at Heuberger Subaru/Volkswagon. A very cordial fellow he was and he explained that he had not yet received the numbers for either Subaru or Volkswagon this month and apologized profusely for not knowing more. He seemed sincere as I explained to him the purpose of my 'project' and he wished me luck.
I don't know this guy, but if I were in Colorado I think I might stop by to talk with them as the experience was unusually pleasant.
* Santa Monica Subaru, Mazda, Lincoln, Maserati
Again I visited the Subaru.com website dealer listing and this time I picked Santa Monica, California only because I like the name 'Monica'. How's that for scientific?! Anyway, after being transferred four times I finally got through to the finance manager. The numbers he quoted me were the following;
24 mo. -> 60% residual @ 0.00210 money factor (5.04% APR)
36/39/42 mo. -> 52% residual @ 0.00225 mf. (5.4% APR)
48 mo. -> 46% residual @ 0.0022 mf. (5.28% APR)
...continued
Last edited by Janq; Jul 4, 2003 at 12:00 AM.
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...All of the above quotes are at 12K miles and buyers can buy them down by a point with a $1K up front payment and there is an acquisition fee of $795. Also the above quotes include no capitalized cost reduction, which is preferable for a business/corporate leasee.
I asked about whether these numbers are from SOA or Chase and he responded that Chase underwrites the loans to Subaru Finance and that they do not do business direct the buyer themselves (which I knew). The main thing though is that this confirms the figures are in fact from Subaru and that they are leasing the STi. One thing though that folks should keep in mind is that money factor values vary from region to region so use the above only as a guide. Although the figures won't change drastically they will be different across the US & Canada.
* People Soft.com
Although everyone knows Peoplesoft.com doesn't offer leases I decided to visit there site at the advisory of 'BenHayat' to see what they might offer in comparison to leasing. Currently there best offering for those with an _excellent_ aka 'preferred' FICO rating of 770 (!) or better is a shockingly low 3.49% at a maximum of 36 months with zero dollars down. Now those of us old enough to have purchased cars a decade or even just five years ago are probably drooling at these super low interest rates. I remember when rates were as high as 9.9% for auto loans and folks had to put down as much as 40% to get what they wanted. As much as I loved the '80's, there are some things about it that I would never like to see come back around!
* A Final Analysis
Now of course for a business/corporate buyer your focus is less so much on money factors and APR's as its a deduction from good ol' Uncle Sam anyway. Our primary concern is the monthly, quarterly and annual expenditure as we have to fit these purchases in to our overall budgets. The regular & average consumer should be focused on non-deductible items such as APR's while we are more focused on high residuals and low payments. Low payments minimize our out of pocket cost of ownership while having a bullish residual helps keep our total depreciation costs to a minimum. Now in the case of SOA as quoted by Santa Monica Subaru SOA's varying term options including 24 months benefits us as we can choose to 'rent' for a short duration minimizing our depreciation and maximizing our potential return as the projected residual is IMHO healthy at 60%. The 36 month offering isn't bad either though at that duration and with its associated money factor it may be wiser to move on to LeaseCompare.com's 39 month program (they too offer a 36 month program but the 39 month offered better overall numbers). Now for those who might want to hedge their bets as to whether the STi maintains its value at SOA's 52% or better, or undershoots that value similar to a regular Impreza WRX sedan at say 51-48% or hits the target right on the nail at 50%, then LeaseCompare.com is the plan for you as there is no down side.
If the STi holds its value well in the 39th month you plan to buy out the car at the residual (rather than turning it in) against a market value of 52%, then turnaround and sell it in the used market at a profit of say 2% (a whopping $630.90 profit) or just keep it and drive into the sunset. Of course that is assuming you'll have the cash in 39 months to do so. If not, then the best thing to do is to let it go as re-leasing or conventionally financing the vehicle defies sense or cents. Now lets say the STi doesn't do well and in 39 months has a market value more similar to the WRX at a modest 49%, then you still come out ahead as your 'paper loss' is only $315.45! But wait, that loss is more than recovered by the deductibility of ownership (interest payments, maint., insurance, fuel, etc.) that your business/corporation are eligible to take each year, something the average/regular consumer buyer does not have access to. So, again there is no down side here.
Now the thing we potential STi leasee's have to keep in mind is undue wear & tear and modifications are _not_ allowed.
This means adding pimp daddy stereo systems other than OEM, and included in the lease, as well as any home mods and/or aftermarket equipment such as a 'Prodrive Performance Pack' or Godspeed tuning upgrade are suspect. We can't turn the car back in with these items on the car as we'll be penalized. If we take them off then we have to hope that their is a market for used STi performance parts 39 months from now. And Lord help us if we ding the car in some way that is irreparable (engine mods) or difficult to hide/obscure (radio installs and home mods) as the additional penalties and fees can add up quick. But again if worst comes to worst, you just buy the car out right then dump it in the used market or ride into the sunset.
...Continued
I asked about whether these numbers are from SOA or Chase and he responded that Chase underwrites the loans to Subaru Finance and that they do not do business direct the buyer themselves (which I knew). The main thing though is that this confirms the figures are in fact from Subaru and that they are leasing the STi. One thing though that folks should keep in mind is that money factor values vary from region to region so use the above only as a guide. Although the figures won't change drastically they will be different across the US & Canada.
* People Soft.com
Although everyone knows Peoplesoft.com doesn't offer leases I decided to visit there site at the advisory of 'BenHayat' to see what they might offer in comparison to leasing. Currently there best offering for those with an _excellent_ aka 'preferred' FICO rating of 770 (!) or better is a shockingly low 3.49% at a maximum of 36 months with zero dollars down. Now those of us old enough to have purchased cars a decade or even just five years ago are probably drooling at these super low interest rates. I remember when rates were as high as 9.9% for auto loans and folks had to put down as much as 40% to get what they wanted. As much as I loved the '80's, there are some things about it that I would never like to see come back around!
* A Final Analysis
Now of course for a business/corporate buyer your focus is less so much on money factors and APR's as its a deduction from good ol' Uncle Sam anyway. Our primary concern is the monthly, quarterly and annual expenditure as we have to fit these purchases in to our overall budgets. The regular & average consumer should be focused on non-deductible items such as APR's while we are more focused on high residuals and low payments. Low payments minimize our out of pocket cost of ownership while having a bullish residual helps keep our total depreciation costs to a minimum. Now in the case of SOA as quoted by Santa Monica Subaru SOA's varying term options including 24 months benefits us as we can choose to 'rent' for a short duration minimizing our depreciation and maximizing our potential return as the projected residual is IMHO healthy at 60%. The 36 month offering isn't bad either though at that duration and with its associated money factor it may be wiser to move on to LeaseCompare.com's 39 month program (they too offer a 36 month program but the 39 month offered better overall numbers). Now for those who might want to hedge their bets as to whether the STi maintains its value at SOA's 52% or better, or undershoots that value similar to a regular Impreza WRX sedan at say 51-48% or hits the target right on the nail at 50%, then LeaseCompare.com is the plan for you as there is no down side.
If the STi holds its value well in the 39th month you plan to buy out the car at the residual (rather than turning it in) against a market value of 52%, then turnaround and sell it in the used market at a profit of say 2% (a whopping $630.90 profit) or just keep it and drive into the sunset. Of course that is assuming you'll have the cash in 39 months to do so. If not, then the best thing to do is to let it go as re-leasing or conventionally financing the vehicle defies sense or cents. Now lets say the STi doesn't do well and in 39 months has a market value more similar to the WRX at a modest 49%, then you still come out ahead as your 'paper loss' is only $315.45! But wait, that loss is more than recovered by the deductibility of ownership (interest payments, maint., insurance, fuel, etc.) that your business/corporation are eligible to take each year, something the average/regular consumer buyer does not have access to. So, again there is no down side here.
Now the thing we potential STi leasee's have to keep in mind is undue wear & tear and modifications are _not_ allowed.
This means adding pimp daddy stereo systems other than OEM, and included in the lease, as well as any home mods and/or aftermarket equipment such as a 'Prodrive Performance Pack' or Godspeed tuning upgrade are suspect. We can't turn the car back in with these items on the car as we'll be penalized. If we take them off then we have to hope that their is a market for used STi performance parts 39 months from now. And Lord help us if we ding the car in some way that is irreparable (engine mods) or difficult to hide/obscure (radio installs and home mods) as the additional penalties and fees can add up quick. But again if worst comes to worst, you just buy the car out right then dump it in the used market or ride into the sunset.
...Continued
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...If I learn any additional info from Dulles Subaru I'll post it via a follow up edit to this original. Further I encourage you to review and/or contact each of my sources on your own to secure quotes & rates for your own specific situation.
One last item I feel needs to be mentioned. Do know that I am in no way employed, retained, compensated or in any way a beneficiary of any of the above cited sources including; Subaru aka 'SOA', LeaseCompare.com, Chase Manhattan Bank, Heuberger Motors/Subaru Inc., Dulles Subaru, Santa Monica Subaru, or Peoplesoft.com, nor have I done business as of yet directly or indirectly with any of the aforementioned business. I am a business owner, Subaru fanatic and do a lot of leasing of corporate & commercial products and only wish to share information I have secured. Any and all commentary featured above whether it be based on opinion or fact is expressly for the purpose of reference only. Don't come back flaming in 24-39 months with your sob stories about how the lease on your STi went sour becuase you selected the 12K mile/year plan drove the car an average of 14.5.
I hope you guys find this information useful and beneficial.
- Janq
NOTE: Today I finally go through to the finance manager at Dulles Subaru. I've made edits to add revised figures as provided.
One last item I feel needs to be mentioned. Do know that I am in no way employed, retained, compensated or in any way a beneficiary of any of the above cited sources including; Subaru aka 'SOA', LeaseCompare.com, Chase Manhattan Bank, Heuberger Motors/Subaru Inc., Dulles Subaru, Santa Monica Subaru, or Peoplesoft.com, nor have I done business as of yet directly or indirectly with any of the aforementioned business. I am a business owner, Subaru fanatic and do a lot of leasing of corporate & commercial products and only wish to share information I have secured. Any and all commentary featured above whether it be based on opinion or fact is expressly for the purpose of reference only. Don't come back flaming in 24-39 months with your sob stories about how the lease on your STi went sour becuase you selected the 12K mile/year plan drove the car an average of 14.5.
I hope you guys find this information useful and beneficial.
- Janq
NOTE: Today I finally go through to the finance manager at Dulles Subaru. I've made edits to add revised figures as provided.
Last edited by Janq; Jul 3, 2003 at 05:58 PM.
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Update:
I got through to 'Pauline' at Dulles Subaru just a moment ago and secured from her residuals similar to those provided by Santa Monica Subaru while the money factors are much different (worst).
Goes to show you that regions do have different rates.
Further its evident that Subaru/Chase does not feel motivated to sub vent these programs which could mean they expect the actual residuals to be higher in the future than whats currently offered. Its tough to say though as the car is new and limited in scope.
Best of luck to all you fellow leasee's...
- Janq
I got through to 'Pauline' at Dulles Subaru just a moment ago and secured from her residuals similar to those provided by Santa Monica Subaru while the money factors are much different (worst).
Goes to show you that regions do have different rates.
Further its evident that Subaru/Chase does not feel motivated to sub vent these programs which could mean they expect the actual residuals to be higher in the future than whats currently offered. Its tough to say though as the car is new and limited in scope.
Best of luck to all you fellow leasee's...
- Janq
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Joined: Jun 2003
Posts: 31
From: CA Bay Area
Janq - You the man!! - great information. I'm also a business owner and I've started leasing cars for the buz for seven years now and your research/experience is right on.
The trick is to get the STI or any other hot car at msrp or less and to use the same tools (software? lending insitiutions) that the dealers are using when giving you a quote.
Still looking for msrp or better and will post my leasing results.
The trick is to get the STI or any other hot car at msrp or less and to use the same tools (software? lending insitiutions) that the dealers are using when giving you a quote.
Still looking for msrp or better and will post my leasing results.
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