Hi, currently looking at this lease offer on a 2024 Mitsubishi Outlander PHEV SE
Seems like a good deal. But I’m not sure any advice would be appreciated. Anyone have experience with this vehicle as well? The MSRP $45505
Thank you. Screenshot below of offer that was sent today.
The $900 in Add ons (edge guards and locks) are telling you they making money…service fee and Additional Cap items.
You are getting screwed many ways. Tell them $350 no down payment (They won’t accept but try)…then run away.
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Putting 7500 down on a lease is insane and goes against the thesis of the site. Your actual lease payment is going to be 350+ more than the monthly they have listed without that downpayment so in the high 600s per month.
You may be getting a slight discount, and that PHEV rebate, but at the same time I wouldn’t recommend this at all when you could pick up a Honda Prologue or Chevy Blazer in this price bracket if you could do all electric (3xx-4xx p/m)
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Thanks for Quick Reply Forbs & HersheySweet
(Forbs) I’ll definitely tell him I don’t wanna put anything down. You’re right I don’t see why I have to put any money down, my credit score is above 800. Thanks !
(HersheySweet) I was planning on putting the least amount of money which was $3313 LEASE, for some reason on the purchase offer, they weren’t giving me the rebates they gave me on the lease. Thanks for your feedback really appreciate it.
What made you conclude this is the right vehicle to spend your energy on?
Rebates can often be specific to leasing or purchasing (and not applicable to both).
Thanks for input max_g, As for choice on this vehicle, We currently have a Mitsubishi Outlander and have had it for 10 years with no issues. As for leasing, this would be my first lease. The vehicle won’t be driven many miles. Our 10 year Mitsubishi has, 70,000 miles. This new 2024 model looks really nice compared to some other vehicles., we would mainly use for local driving, and was kind of hoping the battery would give us decent local range without having to spend money gas.
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Thanks paranoidgarliclover for input, much appreciated.
You can consider a lease followed by immediate buyout on something like a Kia Sorento PHEV
Thanks, max_g how does immediate buyout work? I’m new to all of this.
You would only do it on a car that you want to own, not a traditional lease followed by return at the end, and this method allows you to capture incentives that aren’t available on a purchase.
For example (made up numbers):
50k MSRP
2,500 discount
7,500 rebate only available on a lease
Your immediate pretax price to buyout within 30 days of lease inception would be 40k plus any costs rolled into the lease:
650 acq fee
Doc
Reg
Lease-related Tax
Excellent idea! Makes total sense, thank you.!
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Is this from an Illinois dealer? I thought the document fee was capped at $358. Regardless, it’s a bad deal. I recommend checking Marketplace to see which vehicles are leasing well right now.
Thanks alozy, I live in Chicago, but the quote was from a Mitsubishi dealer in Wisconsin. Thanks for letting me know about the cap on Dock Fees for Illinois. Will definitely remember this this tip much appreciated.
max_g, forbs, HersheySweet,paranoidgarliclover, alozy
I have a question on residual value. Let’s say the residual value is at 55% of, the vehicle I want to lease. The lease MSRP is $55,000. I negotiate a price for 50,000. Is the residual value calculated from the 50,000 or 55,000. Thanks for all your help.
Or is the residual value calculated after taxes and fees?
RV is based on the MSRP Sticker after Destination charges. Nothing changes that.
Dealer Addons / taxes / fees do not count toward the RV.
The $ value for the RV is simply the %RV x MSRP.
You can see all this in the LH calculator
If you have a City address know you are going to pay taxes up the wazoo on a lease. Additional 9% tax on lease payments for Chicago. Financing/cash makes the most fiscal sense.
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forbs, Thanks. Another ? How are Chicago Taxes Calculated on a $50000 Lease
Where in this example, am i being taxed lets say 10% rate , I also understand there is a 9% tax on Monthly payment.
Example $50,000 MSRP. 50% residual. $25000
Discount $ 2000
=$48000
Manufacturer $1000
=$47000
Federal Rebate $7500
=$39500
Thanks! gohawks23. Im learning a lot from everyone here. Really Appreciate all feedback here.
Another ? How are Chicago Taxes Calculated on a $50000 Lease
Where in this example, am i being taxed lets say 10% rate , I also understand there is a 9% tax on Monthly payment.
Example $50,000 MSRP. 50% residual. $25000
Discount $ 2000
=$48000
Manufacturer $1000
=$47000
Federal Rebate $7500
=$39500