Should I buy my leased Subaru Outback?

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Broadway2018
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Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 8:20 am

I have a 2017 Subaru Outback w/ 30k miles. The buyout price is $26,500. I really like the car, however, feel it may be overpriced. I am open to other vehicles but it is hard to find AWD, leather, pre-collision safety features for cheaper. Everything else I look at is $30k plus even used there is not much.

Suggestions on other cars? Or should I keep the Subaru?

bloom2708
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Re: Should I buy my leased Subaru Outback?

Post by bloom2708 » Fri May 24, 2019 8:36 am

Could you just upgrade to a 2019 (with 0% financing) with the same options on a new Outback?

That price seems above full dealer retail. Is that the lease residual or the buyout today (lease not done yet)?

If you can get into a 2019 for $32k, then that is $6k + taxes and fees for 3 years of driving under warranty and those first 30-40k miles.

It might be interesting to see what the dealer would put your car on the lot for. Prices are regional too, so the prices at our Subuaru dealer may not translate to higher cost areas.

Tough call, but I would probably move to a 2019 with the same features.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

Strayshot
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Re: Should I buy my leased Subaru Outback?

Post by Strayshot » Fri May 24, 2019 8:37 am

You “feel” it is overpriced or you “know” it is overpriced? The former is an emotional state with no basis in data, and the latter is a logical state where you have used autotrader.com, eBay.com, and various bluebook sites to look at the distribution of prices for the same vehicle trim, year, and mileage?
Which is it?
If you like “your” car but can buy the same model and trim with similar miles for significantly less (enough to justify the time and hassle of the transaction) I would do that. If the price is fair based on data, just buy your car.
Why open up the entire realm of car choices if you aren’t dissatisfied with your current vehicle? Seems a waste of time and energy........

Topic Author
Broadway2018
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Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 8:39 am

bloom2708 wrote:
Fri May 24, 2019 8:36 am
Could you just upgrade to a 2019 (with 0% financing) with the same options on a new Outback?

That price seems above full dealer retail. Is that the lease residual or the buyout today (lease not done yet)?

If you can get into a 2019 for $32k, then that is $6k + taxes and fees for 3 years of driving under warranty and those first 30-40k miles.

It might be interesting to see what the dealer would put your car on the lot for. Prices are regional too, so the prices at our Subuaru dealer may not translate to higher cost areas.

Tough call, but I would probably move to a 2019 with the same features.
2019 is $32,000. My subaru outback is a limited. Edit: I see what you are saying....maybe I will shop around. $26,500 is the buyout today. I have a year left on lease. The reason I want to get rid of it is we are moving cross country and will go over the miles (Drive from MD to Washington state is 2-3k miles buy itself. Also, we were going to buy a car anyway either when the lease is over or now.

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tennisplyr
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Re: Should I buy my leased Subaru Outback?

Post by tennisplyr » Fri May 24, 2019 8:43 am

Why not lease a new one and put off a decision for a few years.
Those who move forward with a happy spirit will find that things always work out.

Topic Author
Broadway2018
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Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 8:46 am

tennisplyr wrote:
Fri May 24, 2019 8:43 am
Why not lease a new one and put off a decision for a few years.
Because I am tired of wasting money. Originally I was looking to spend $20k, but that does not really seem doable. Everything I look at it cost more for AWD, low miles, leather, etc..

bloom2708
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Re: Should I buy my leased Subaru Outback?

Post by bloom2708 » Fri May 24, 2019 8:48 am

Broadway2018 wrote:
Fri May 24, 2019 8:39 am
2019 is $32,000. My subaru outback is a limited. Edit: I see what you are saying....maybe I will shop around. $26,500 is the buyout today. I have a year left on lease. The reason I want to get rid of it is we are moving cross country and will go over the miles (Drive from MD to Washington state is 2-3k miles buy itself. Also, we were going to buy a car anyway either when the lease is over or now.
Is it a 12k/year mile lease? Or 15k/year?

With one year left on the lease and a cross country move coming, I can see where you would consider a buyout. At 30k miles already you don't have much room left on a 36k mile lease.

Going over the lease mileage can add up in a hurry.

I leased one car in my life and the "mile watching" was not fun. Going on a long trip and knowing that you are over the allotted miles. It kind of wears on you. I was way over miles starting in year 3 and just bought the lease out rather than get dinged for over mileage.

With 1 year left you could try to sell private party (Get $26,500 and you come out even). Get less and pay the difference or buy it out.

Good luck with the decision.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

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Sandtrap
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Re: Should I buy my leased Subaru Outback?

Post by Sandtrap » Fri May 24, 2019 8:53 am

bloom2708 wrote:
Fri May 24, 2019 8:36 am
Could you just upgrade to a 2019 (with 0% financing) with the same options on a new Outback?

That price seems above full dealer retail. Is that the lease residual or the buyout today (lease not done yet)?

If you can get into a 2019 for $32k, then that is $6k + taxes and fees for 3 years of driving under warranty and those first 30-40k miles.

It might be interesting to see what the dealer would put your car on the lot for. Prices are regional too, so the prices at our Subuaru dealer may not translate to higher cost areas.

Tough call, but I would probably move to a 2019 with the same features.
+1
If you like the car that much, buy a brand spankin' new one.
And, get a great deal on it the "boglehead" way.
j :happy
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Jack FFR1846
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Re: Should I buy my leased Subaru Outback?

Post by Jack FFR1846 » Fri May 24, 2019 8:53 am

Just searched one dealer. 18 limited with eyesight and 25k miles $26 asking. 17 same thing with 27k miles eyesight, limited, nav for $22.5k.

https://www.planetsubaru.com/used-inven ... el=Outback&

Metrowest shows $6840 off new H6 Outbacks.

Every market is different. New England has tons of dealers.
Bogle: Smart Beta is stupid

researcher
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Re: Should I buy my leased Subaru Outback?

Post by researcher » Fri May 24, 2019 8:55 am

Broadway2018 wrote:
Fri May 24, 2019 8:39 am
I have a year left on lease.
The reason I want to get rid of it is we are moving cross country and will go over the miles (Drive from MD to Washington state is 2-3k miles buy itself. Also, we were going to buy a car anyway either when the lease is over or now.
I'm confused.
If you have a year left on the lease, then how do you plan on getting rid of it before your trip?
Unless you attempt to terminate the lease early, or find someone else to assume the lease, you are stuck with the car for the next year.

If so, your options would be...
- Have the car shipped to avoid the miles
- Drive the car, and pay for any overages when you turn the car in next year
- Purchase the car when the lease is up, and don't worry about how many miles you put on it in the meantime

Topic Author
Broadway2018
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Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 9:02 am

bloom2708 wrote:
Fri May 24, 2019 8:48 am
Broadway2018 wrote:
Fri May 24, 2019 8:39 am
2019 is $32,000. My subaru outback is a limited. Edit: I see what you are saying....maybe I will shop around. $26,500 is the buyout today. I have a year left on lease. The reason I want to get rid of it is we are moving cross country and will go over the miles (Drive from MD to Washington state is 2-3k miles buy itself. Also, we were going to buy a car anyway either when the lease is over or now.
Is it a 12k/year mile lease? Or 15k/year?

With one year left on the lease and a cross country move coming, I can see where you would consider a buyout. At 30k miles already you don't have much room left on a 36k mile lease.

Going over the lease mileage can add up in a hurry.

I leased one car in my life and the "mile watching" was not fun. Going on a long trip and knowing that you are over the allotted miles. It kind of wears on you. I was way over miles starting in year 3 and just bought the lease out rather than get dinged for over mileage.

With 1 year left you could try to sell private party (Get $26,500 and you come out even). Get less and pay the difference or buy it out.

Good luck with the decision.
It's a 12k a year lease. Dumbest decision I ever made was to lease. Subaru does not allow you to sell private party, only to a dealer. My other option is just to keep driving and trade it in later. If I trade it in, I get the tax credit since in MD you pay full tax on a lease. Another reason leasing is stupid in MD.

KT785
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Re: Should I buy my leased Subaru Outback?

Post by KT785 » Fri May 24, 2019 9:03 am

Broadway2018 wrote:
Fri May 24, 2019 8:39 am
2019 is $32,000
2019 is the last year of the current generation and accordingly, you should be able to snag one (well-equipped/Limited) for under $32,000 if you shop around (i.e., email negotiation) or possibly if you have access to the Subaru VIP Program. Check out the Subaru Outback forums for the prices people are actually paying around the country to guide your decision making and negotiations.

(I only paid around $31,000 for my 2017 Outback Limited w/Eyesight back in December 2016 :D )

Alternatively, depending on when your lease is up, you may look at the 2020 Outback. I'm disinclined to buy any car in the first year of a new generation, especially when the 2019 will likely be the most reliable year for the outgoing generation, but it may be worth it for you.

KT785

Topic Author
Broadway2018
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Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 9:04 am

researcher wrote:
Fri May 24, 2019 8:55 am
Broadway2018 wrote:
Fri May 24, 2019 8:39 am
I have a year left on lease.
The reason I want to get rid of it is we are moving cross country and will go over the miles (Drive from MD to Washington state is 2-3k miles buy itself. Also, we were going to buy a car anyway either when the lease is over or now.
I'm confused.
If you have a year left on the lease, then how do you plan on getting rid of it before your trip?
Unless you attempt to terminate the lease early, or find someone else to assume the lease, you are stuck with the car for the next year.

If so, your options would be...
- Have the car shipped to avoid the miles
- Drive the car, and pay for any overages when you turn the car in next year
- Purchase the car when the lease is up, and don't worry about how many miles you put on it in the meantime
You can trade in a lease to a dealer anytime. There is no penalty. It's the same as when you finance. My buyout is $26,500. If a dealer offers $25k, I would pay the difference. Same as trading in a car you finance.

Thegame14
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Re: Should I buy my leased Subaru Outback?

Post by Thegame14 » Fri May 24, 2019 9:05 am

Broadway2018 wrote:
Fri May 24, 2019 8:46 am
tennisplyr wrote:
Fri May 24, 2019 8:43 am
Why not lease a new one and put off a decision for a few years.
Because I am tired of wasting money. Originally I was looking to spend $20k, but that does not really seem doable. Everything I look at it cost more for AWD, low miles, leather, etc..
we bought a Mazda CX-9 a year ago with 32K miles on it for $15K, includes sunroof, leather seats, heated front seats, bose speakers, it has backup camera, blind spot warning, AWD....

https://www.mazdausa.com/shopping-tools ... aler=50339

https://www.mazdausa.com/shopping-tools ... aler=50217

Topic Author
Broadway2018
Posts: 284
Joined: Sat May 13, 2017 3:34 pm

Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 9:12 am

Thegame14 wrote:
Fri May 24, 2019 9:05 am
Broadway2018 wrote:
Fri May 24, 2019 8:46 am
tennisplyr wrote:
Fri May 24, 2019 8:43 am
Why not lease a new one and put off a decision for a few years.
Because I am tired of wasting money. Originally I was looking to spend $20k, but that does not really seem doable. Everything I look at it cost more for AWD, low miles, leather, etc..
we bought a Mazda CX-9 a year ago with 32K miles on it for $15K, includes sunroof, leather seats, heated front seats, bose speakers, it has backup camera, blind spot warning, AWD....

https://www.mazdausa.com/shopping-tools ... aler=50339

https://www.mazdausa.com/shopping-tools ... aler=50217
Does Mazda have pre collision?

Bb073084
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Re: Should I buy my leased Subaru Outback?

Post by Bb073084 » Fri May 24, 2019 9:21 am

I just bought a brand new 2019 outback premium with all the bells and whistles except navigation for $26.5k. Your buyout price seems very high. I would not pay anything more than $22k-23k since all you get beyond mine is navigation (new cars have Apple play), sound system, and maybe a moon roof.

Mine was MSRP of $31,387 and invoice $29,218 to give an idea of price below invoice.

researcher
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Re: Should I buy my leased Subaru Outback?

Post by researcher » Fri May 24, 2019 9:22 am

Broadway2018 wrote:
Fri May 24, 2019 9:04 am
You can trade in a lease to a dealer anytime. There is no penalty. It's the same as when you finance. My buyout is $26,500. If a dealer offers $25k, I would pay the difference. Same as trading in a car you finance.
Maybe I don't understand leasing as well as I thought...
- The lease you signed said you would pay $xxx/month for 36 months.
- At the end of those 36 months, you could purchase the car for $26,500.

So you still have ~12 months of lease payments left on your contract, correct?

Yet you're saying you can buyout the car now and not have to make those remaining 12 lease payments?

Topic Author
Broadway2018
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Re: Should I buy my leased Subaru Outback?

Post by Broadway2018 » Fri May 24, 2019 10:49 am

researcher wrote:
Fri May 24, 2019 9:22 am
Broadway2018 wrote:
Fri May 24, 2019 9:04 am
You can trade in a lease to a dealer anytime. There is no penalty. It's the same as when you finance. My buyout is $26,500. If a dealer offers $25k, I would pay the difference. Same as trading in a car you finance.
Maybe I don't understand leasing as well as I thought...
- The lease you signed said you would pay $xxx/month for 36 months.
- At the end of those 36 months, you could purchase the car for $26,500.

So you still have ~12 months of lease payments left on your contract, correct?

Yet you're saying you can buyout the car now and not have to make those remaining 12 lease payments?
You can buyout the car for the remaining balance anytime. I owe $26,500 right now, if I make another payment it would be $26,200. Balance keeps decreasing. Buyout at end of lease in 12 months is roughly $22k.

researcher
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Re: Should I buy my leased Subaru Outback?

Post by researcher » Fri May 24, 2019 11:06 am

Broadway2018 wrote:
Fri May 24, 2019 10:49 am
You can buyout the car for the remaining balance anytime. I owe $26,500 right now, if I make another payment it would be $26,200. Balance keeps decreasing. Buyout at end of lease in 12 months is roughly $22k.
Got it.

When I think of a lease 'buyout' price, it is the amount you would buy the vehicle for at the end of the lease period.

So by buying it out before the lease period ends, you are essentially paying for the remaining monthly payments (~$375/mo).

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