Hello! I’m trying to calculate the lowest monthly I can ask for on a 2025 Subaru Forester Touring trim. The MSRP will be $38k (negotiated down from $41k). I want to put $0 down for a 36m/10k lease. Can someone please help with how I calculate using residual, money factor, incentives, etc? I’m not familiar with how best to calculate. Thank you for your help!!
Hello, you can either go to Edmunds forum and ask there or become a super supporter here and get that info yourself.
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Msrps are non-negotiable. They are what they are. You can not change them.
You can negotiate a discounted sales price, but the msrp doesn’t change. This matters when you go to calculate a monthly payment as the residual value is based on the actual msrp.
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Some cars are best bought/financed; some leased.
Subaru Forester is the former
Not in CA. I’ve seen @dominic post great lease deals in the Forester recently.
Don’t see anything in his post history re: Forester.
Just updated the user. I previously entered the wrong username.
Thank you! Sorry, I meant the sales price is $38k (MSRP is $41k). What do I do from here to negotiate the best lease price? Is it as simple as offering to pay 1% of the sales price? ($380 per month with 0 down?)
Thank you for the reply. Can you help me understand why Subaru is better financed/bought vs leased?
Hi, sorry I still see @dominic posting forester deals in CA. I’m in NY/NJ. Was there another username?
Forget you have ever seen any discussion about a 1% rule. It never has and never will inform what a good deal is.
The proper path would be to research what an aggressive pre-incentivendiscount target is and then apply the lease programs as they apply to your personal situation. Plugging those values in will tell you what an aggressive price would be for your situation.
You would need to determine if thats a good value or not separately.
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Thats fine, you can still use them for reference for a pre-incentive discount target.
Once you have negotiated a discount from MSRP, the monthly lease cost becomes a function of Money Factor (MF) , Residual Value (RV) and least term in months. THe RV is set by the bank and not negotiable unless there is the possibility of using different banks for the lease. The base rate MF is also set by the bank, but the dealer can mark this up. You want to ensure you get the base rate from the dealer. The RV will vary depending on the lease term. 36 months is standard, but sometimes banks offer better RV and MF depending on term. You need the dealer to tell you if there is a sweet spot for term, or figure it out using Edmunds Lease forum to get RV and MF details. Put all this information into the Leasehackr lease calculator to calculate the payment.
This is the deal you posted BEFORE taxes/fees. I don’t know NY tax rate. This is also assuming buy rate money factor.
Pros for financing/ownership: they hold their value really well. And there’s always private party demand for them. Families, students, young adults, seniors—literally almost every demographic wants these cars as used cars.
Cons of leasing: the total cost of the lease is hideous. The calculator posted above shows a total lease cost above $18,000 assuming a 8.375% tax rate. How would you benefit from getting into a cycle of leasing such terrible leases? By definition a lease ends and the car is returned. Then you lease again. Maybe $19,000 on the next one. Why would anyone spend that much money relative to the selling price and gain so little equity
First off, Forester payments should never be in $500/mo, so let’s say $14,500 instead of $18k. Then, you almost always guaranteed to have some equity on a Subaru, so $14.5k can easily become $10.5k, making effective monthly payments under $300. Not saying that buying a Forester is a bad idea, but if one wants to have a Subaru and low payments, then lease is the way.
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You’re looking for this
As @max_g mentioned this is better purchase. The 25 is a redesign and just got IIHS Top Safety Pick+ so dealers are going to act like they’re gold.
If you can’t find one in the marketplace for less, get/use VIP, ideally buy one otherwise lease.
And since you are in New York, wait until after January 2 to lease, when the new law takes effect so that you will not have to pay disposition fee.
Good luck and let us know if you have specific questions on a deal
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Everyone on here is going to have their own opinions and I have done a ton of research myself. Just to compare financing vs leasing. A $38k Forester plus tax and no money down you are looking at borrowing $41k at the special Subaru finance rate of 4.99%. A payment of $658 for 7 years doesn’t seem as enticing as a lease payment in the mid 400s. I am going this route and I can walk away after 36 months and drive something new again for around the same amount. Always covered under warranty and always driving a new car.
Hello everyone! Thank you so so much for all of your help!
Here’s the latest I have on the deal I have been offered for the 2025 Subaru Forester Touring/SFL in River Rock Pearl
$449.92 a month / $0 down
MSRP $41,879
Sales price: $38,000
36m/10k lease
No trade in
First monthly payment waiver rebate ($449.92 is waived)
Acquisition fee $595
Registration fee $221.50
NY Sales tax (8.875%) $1,437.49
Deal doc fee: $175
Tax on fees: $15.53
Total Inception Fees: $2,444.52
1st month’s payment included
Bank fee included
DMV fee included
Documentation fee included
Taxes included
I have Tier 1 credit. I think I calculated that I could negotiate this down to $392 monthly?? Can I counter them to $392 vs $449.92 they are offering??? ($0 down for both). Thank you all soooo much for your help! I’m very new to this!
$2,444.52 DAS (due at signing) is not the same as down. It may be like this with $0 DAS and first month credit: