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Bunch of hiking/biking/etc “granola” organizations. Called the Subaru VIP program. Can google to see others. Leave No Trace is one with a $25 minimum to join. Generally outdoor orgs where you have to make a small donation to join and be a member at least 6 months.
Let's get back on this planet. A Subaru Crosstrek is nothing special it's a plebeian staple car for soft men that wanted to put a 4Runner in the driveway, but the basic Whole Foods/Trader Joe's shopping wife wasn't having it.
There's no reason to buy a used one with so little savings. The manufacture incentives are not going to apply, the warranty is partially burned up, and they can't be financed as cheap.
I'm on this planet. It's only cars like a 918 Spyder where it could occur. You'll never find even a fraction of $1000k off plebeian cars used. Most of us will never even see that amount of money, even if it's only a little bit to you.
I mean, other than the fact that I can't afford cars that expensive but if I could find a used 918 Spyder for a couple bucks I'd sure as hell buy it. Who wouldn't?
We're not talking about a 918 Spyder. We're talking about a Subaru.
Because with a less than a 1000 dollar difference it's false savings. You're losing out on the factory warranty and taking a car with 36,000 miles of use. I can see a 5-10k savings. But for 1k difference I'll buy new all day long in this scenario.
If the cost savings was there and I had a good extended warranty I would buy used. But it has to be substantial savings to do it.
I'm on this planet. It's only cars like a 918 Spyder where it could occur. You'll never find even a fraction of $1000k off plebeian cars used. Most of us will never even see that amount of money, even if it's only a little bit to you.
If I'm buying a Porsche it's not going to be some green guilt stricken hybrid E.U. special like 918 Spyder.
Consider the Subaru Crosstrek. Current lease deal is $219/month with $1999 down for 36 months. Used values for a 3 year old model with 20-40k are largely within $1000 of new prices. I am in the Pacific Northwest where Subarus are very popular so that may be a regional anomaly.
So the lease costs $10k when the car only depreciated $1k. So you could cash that out by taking to carmax or buying out and selling privately. But you’ll still have paid much more than the $1k depreciation.
So if residual was priced accurately shouldn’t the lease deal be something more like $40/month with $0 down?
I don't believe the premise that the 3 year old Subaru is actually worth only $1,000 less than a brand new one. Unless the residual value on the new one three years ago was mis-forecast, or given on purpose as an incentive to have a low monthly payment.
In either case the Subaru is worthless to the person who leased it after the lease is up.
Quote:
Your lease buyout is surely much much less than market value.
?
The lease buy-out would then be a ridiculous price, if a new one could be obtained for only $1,000 more. The math is not adding up here.
We leased a 2014 Highlander for two with the $25K residual. In 2016, they were going for $30K+ on dealer lots but we could never make money buying it ourselves and selling it. For starters, add the 6% sales tax. That's $1500 right off the top. Add the low price people expect from private party sales and not much is left.
Yeah a no sales tax state like Oregon here helps the scenario along.
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Originally Posted by jencam
The lease buy-out would then be a ridiculous price, if a new one could be obtained for only $1,000 more. The math is not adding up here.
The lease buy out would be a bargain yes. You could buy yours out for $14k or whatever he residual was agreed upon and then flip it for $20k.
If the residual were $14K, that is a lot more than $1K less than a new one.
The retail value is $1k less than new but you get to buy it out at $14k because of the negotiated lease. Thus you have “equity” in your lease that you can cash out.
Yeah that’s kind of my point the whole model doesn’t make sense when you have vehicles with extraordinary resale value.
Unless I need coffee, which is very possible, you're talking now about the other way around. This seems to indicate the residual value was set far lower than what it's actually worth now. Which would mean that you likely paid more for the lease than you should have.
So you're $12K in, and it takes another $14K to own it. ?
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