2018 Subaru Outback 2.5i Premium w/ Eyesight Lease offer

Hi all,

Shopping around for a 2018 Subaru Outback 2.5i Premium w/ Eyesight and have 2 offers. I feel like their money factors/residuals are not right. Should I take either one of these deals or negotiate more? My credit is fair/good (depending on whos it is) around 700.

2018 Subaru Outback 2.5i Premium
PACKAGE: JDD-14 (EyeSight + Blind Spot Detection & Rear Cross Traffic Alert + Power Rear Gate + High Beam Assist)
COLOR: Crystal Black Silica / Slate Black w/Cloth Upholstery
LED Upgrade - Map and Dome lights
All-Weather Floor Liners
Rear Bumper Cover
Auto-Dimming Exterior Mirror with Approach Light
Rear Seat Back Protector
Splash Guards

MSRP: $31,750
Invoice: $29,475
Selling Price: $26,775

BOTH dealers offered me this price.

Dealer 1 lease offer:
Around $350/mo w tax (won’t give me an exact quote without running credit)
MSRP 31,750
Selling 26,775
Up front: $595 acquisition fee + $175.94 Doc fee and $221 new plates, title and registration +FMP
Mf (not provided, but through the calculator) 0.0015
Residual: 59%
Taxes 18% (Chicago)

Dealer 2 lease offer:
$398/mo w tax
MSRP 31,750
Selling 26,775
Up front: $595 acquisition fee + $175.94 Doc fee and $221 new plates, title and registration
residual 59%
Taxes 18% (Chicago)

Should the MF factor be much lower? What about the residual? I’m pretty happy with the selling offer since its 16% below MSRP. I don’t think I’ll get much more than 5k off.

The MF should be 0.00025

Is MF credit dependent, determined by the dealership or dependent on the car model? How can they be so wildly different?

It’s credit dependent and varies by car model and even trim within each model.

Edit to add: dealerships can mark up the base rate MF to make more money

0.00025 base and 0.00055 with a credit score below 690

So essentially these dealers are marking up the MF? Is it because it they make more money off the deal? What’s holding them back from offering subarus set MF if I know it?

My FICO is 697, so even if I did get 0.00055 that is wildly different than 0.0025…

Should I counter offer with these MFs? Or try to get them close to them as possible?

Run the numbers with the regular MF on the calculator and see how much of a difference it makes. Let the dealer know that you are aware they are marking up interest rate on you. (which negates the big discount)

I live in MD and pay $360 a month for a 2017 Subaru Outback Limited w/ Eyesight.

Msrp: $35,145
Selling price: $30,722
Sales tax : 492.45 ( traded in vehicle so tax credit made this much lower)
Title/reg/ license: $350
Acquisition: $595
Negative Equity: $1360
Dealer fee: $795
Rebate: $500

Adjusted cap cost: $33,815
Residual value: $22,246
Rent charge: 1,412

36 months/12k miles
$360 a month

It also depends if it’s a local credit union vs suburu themselves

Dealer 1 is most definitely Subaru financial services (she said in an email). I’m not certain about dealer 2, but they are a much bigger dealership than #1.

Thank you SO much for your help. I can’t believe I’ve been fooled for days now.

Just to clarify, the MF/RV’s only change with the trim levels? So a “premium” with eyesight is the same MF/RV as a “premium” without?

So did you pay around the Subaru set money factor for this car? Your monthly payments, for a much higher trim, are being quoted the same as a premium for me. Despite your trade in/rolled over $$$

Rent charge is MF just straight up calculated, and yeah RV and MF is tied to a trim and not the package. I feel like the dealer who said 0.0025 made a mistake in telling it, most likely because the person your speaking to doesn’t know much about leasing? Anyways I think the maximum markup could be a potential 0.0015, from 0.00055 + 0.00051~ ish mark up. But the first step is making sure they give you base terms, dealers make money off of markup MF and if they don’t reduce just move on

She is an internet sales manager, not a finance person. .0025 just seems absurdly wrong or inflated, from what I’ve read.
But now that I’m thinking about it, if the residual is better on a 2019 outback premium, wouldn’t it be smarter to just get that? Do you know the RV/MF?

The outback premium is 0.00130 MF and 61% residual, for future reference you can just search [year] [model and make] edumnds mf on google and the first item should be a thread with all the info that you could want!

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My parents picked up this Outback in June, but you can use it as a reference.

Oh! I have your post screenshotted on my phone. So get this… I read the dealer this entire post word for word after they quote me $497/mo. MSRP was the same, as was the sale price. They said “there’s no way” “his tax is only 5%” “he had a trade in” “no dealer in chicago would do this.”
Looking at it now you had a .0004 MS which is much better than .0025 I was getting… my tax is 18% (in the city) but still, pretax it should be around $250. I’m so mad!! Haha

@beetlejuicebettle My parents live in Dane County, WI, where the tax rate is 5.5% and they did NOT have a trade in. If the sale price and fees are the same, the only thing effecting the pre-tax monthly is the MF and Residual. How they get $497/month with the same sale price is crazy.

Find another dealer…Grand Subaru had decent pricing without any hassle, but didn’t do out of state leases as store policy, so I had to move on. Give Nealy Anderson an email with a specific stock number:

Nealy Anderson - Internet Sales Manager
Grand Subaru
(888) 840-3934 Office #
630-363-0569 Cell #

The first quote she sent me was 15.3% off of MSRP