Hoping you can help me pick out a make/model for my first lease.
I currently own a 2012 Impreza (not WRX) that is paid off and in my name. I bought it new, so it’s 8+ years old now and starting to show its age. As such, I’m looking to replace it. After owning for 8+ years, I think I’d prefer to lease something. I don’t drive more than 10k miles/year (even before COVID) and there’s basically no maintenance besides gas and oil, then I get a new car in 3 years.
I’m looking for:
A smaller sedan, coupe, or hatchback (no trucks or SUVs)
Something small (I live in the city), but not too small (e.g., a Honda Fit is too small)
FWD or AWD (I live in Pennsylvania, so winter can be bad sometimes)
I would prefer automatic transmission (current Impreza is a 5-speed, which is a bitch in traffic)
I don’t need a turbo, but I also don’t want to drive something with a lawnmower engine
Budget is around $25k, but I’m looking at leasing it, so maybe like $350/month max??
Nothing electric (I don’t have a dedicated parking spot)
You have a pretty good list here: I’d want to drive a 2020 Impreza 5dr, Golf, Mazda3, Elantra 5dr, Civic hatch/sport, Minis, whatever the Toyota is. Nothing on your list is a lease non-starter (eg an STI or Golf R), but some things will lease better depending in programs.
What have you driven, and what do you like/don’t like about then?
Out of the ones you listed, I’d probably get a civic EX hatchback, has the 1.5T engine. Styling is subjective, I’d take the sedan over the hatch tbh, but same car. Just no AWD option.
@NurseAl, I recommend Ally, she is an amazing broker. She does Subaru and Hyundai so killing two birds with one stone. Maybe consider some other options from her repertoire?
Jetta isn’t out of the question, curveball, but the XC40 maybe? It might meet your bill but feel free to flame me.
That’s a pretty good list you got there. All five could be good leases; it would really depend on the discounts you can get in your region. As @jeisensc mentioned, none of those cars are non-starters in terms of leasability.
My personal take on the cars themselves:
Impreza: EyeSight system is handy in traffic. Best for winter weather because of AWD. Kinda agricultural feeling to drive.
Civic: Good all-rounder. Great turbo powertrains and good ride/handling balance. Adaptive cruise control is decent.
Veloster: Most overtly sporty one of the bunch. Interior feels low-rent.
Golf: Nicest interior and most refined of the bunch. This generation is a bit long in the tooth (been around since 2015).
MINI Hardtop: You either like it or you don’t. I’ve always liked MINIs, but they are on the pricey side (nearly $30K with some options).
Since I was curious, I searched through the Marketplace as if I were searching for a car of my own. Here are the best deals I found for my region (Southern California). Curious how they would differ in PA…
Welcome. First, hats off to you. You are approaching the new car lease process in a thoughtful manner. Once you sort your list of car options to your favorite few your attention will shift to “How do I get a great deal?” You have come to the right place to answer this question.
For most people, the critical components of a good deal are straightforward. You need to understand and manipulate the following: a. solid-to-great discount off MSRP, b. methodically stack manufacturer/dealer incentives, c. buy rate MF, d. customary fees/taxes, e. minimal DAS and f. no garbage add-ons. Some high school math is involved, so invest time to grasp the lease calculation/calculator. The leasing process can appear formidable. But, master it’s critical components and you can negotiate a great deal. Don’t get too good at it, your friends will drag you on their next 6-hour dealership adventure.
Here is a roadmap on how you get there:
First, you spend 20+ minutes on the “leasing 101” and “calculator” sections of this forum and discover or brush-up on leasing fundamentals. Hackrs share their insights in shorthand so to get the most out of their feedback know how the leasing game is played. Calculator tip: To get the most useful feedback on your deal from the hackrs make sure you know how to reflect 3 key variables in the calculator: A. Pre-Incentive Selling Price (calc input = Selling Price, please master pre-incentive SP), B. direct-to-consumer incentives (calc input = Taxed Incentives), and C. direct-to-dealer incentives (calc input = Untaxed Incentives).
Second, you spend 5 minutes on edmunds.com (see link below) to request the current MF, RV and incentives available for your specific vehicle and region. You post a customized version of the following question and wait for a response (usually less than one business day): “Dealer zip code 98765. 36/10k. 2021 330i xDrive. Please share the latest MF, RV and incentives. Plus any loyalty, conquest or college cash available?” Note: you need to provide a dealer zip code where you plan to negotiate the deal plus year, make, model, and drive. https://forums.edmunds.com/discussions/tagged/x/leasing/p1
The buy rate MF is the lowest interest rate available from the lender. You must qualify for tier 1 credit. During your negotiation determine if the dealer is calculating your payment using the buy rate. To add profit, a common practice among dealers is to “mark-up” the MF. Your homework from step 1 will explain how to counter MF mark-ups. Make your offer at the buy rate. If the dealer insists the deal must be done with a markup simply adjust you selling price offer down to compensate for the MF markup.
Now this is a critical step. Understand and share your selling price BEFORE incentives. What people on here refer to as the pre-incentive selling price. Hackr feedback on this critical variable is what you seek - clearly identify your pre-incentive discount to make it easy for the hackrs to share their viewpoint on your situation. Best case - before you reach out to dealers - do your research on this forum and ask the hackrs: “Based on my homework, I plan to target a pre-incentive discount of X-Y% in the SoCal market. Can I be more aggressive? Will I need to settle for less?” I will be explicit - the single most important variable you will negotiate is your pre-incentive discount from MSRP. The rest of the monthly lease calculation - RV, buy rate MF, acquisition fee - is non-negotiable with the lender. Incentives are set by the mfg - just make sure you get them all.
Use the search function on this forum to discover relevant deal posts (i.e. comps) so you can gauge the range of possible pre-incentive discounts for your situation. This step can NOT be skipped. As you review “Signed” and “Deal Help” postings you will put your working lease knowledge to the test and gain confidence in quickly identifying “good-bad” deals. This exercise will steady your nerves as you engage in your actual negotiations. “Under pressure, you sink to your level of training” (Badass Navy Seal).
Go get a competitive quote - and you don’t even need to leave this forum. Your first “dealer” quote can come from one of the brokers/dealers on this site. Brokers/dealers post their current deals every few weeks: monthly, DAS, MF, RV, incentives, MSDs. If you like the numbers, you are driving a new car in a few days. If you want to invest energy to get a more aggressive deal, you know what to shoot for.
Find all available incentives (step 2 Edmunds plus mfg websites), know the standard fees/taxes in your state, research how to structure DAS, avoid buying down cap cost and just say no to garbage add-ons.
Ninja hackr move: Use MSDs to save on interest cost. See step 1 to discover their benefits.
It’s best to have a solid understanding of what deal is possible in your market and in the current environment BEFORE you engage with dealers. With an outline of a great deal in hand, work your way down a list of dealers until you get it - or close to it. If you crave an aggressive deal you will hear “no” 90% of the time; respectfully move on to the next dealer until you run out of energy or time. Pull the trigger … and enjoy your new car with the confidence that you played the game well. Or, reach out to the many reputable brokers/dealers on this site and start driving your new car in a matter of days.
$350/mo on these cars are a good budget that you have set. You should be able to get most of these hatchbacks in that range. My personal recommendation is go with the car you like. Don’t pick by the payment. Pick the car you want with the features and then work the payment as you have to live with this car for the next 3 years.
My recommendations are VW golf, Mazda 3 & Corolla and the Subaru. All great cars. Since you are coming from a 5 speed, keep in mind that some of these cars may have CVT transmission. So drive them and see if you can live with that.
I hadn’t thought about the Corolla, it seemed too big online. However, if I got to a dealer to look at the hatch version, I’ll check out the SE as well.
