Today via email & phone I negotiated what I think it a good deal on a 2013 RDX AWD with the Tech Pkg.

I originally looked at and test drove the RDX back in June but for various reasons never bought the vehicle. I also got some great answers to my questions from various members here on this great forum. I'm back now and ready to pull the trigger.

I'm looking to lease for 36 months, 12K miles/yr with $2.5K total out of pocket. Here is the best deal I've worked out.
Residual = 59%
Money Factor = .00165
MSRP = $40315
Sale Price = $37800
Monthly Payment = $437 including tax.

I'm going in on Sat morning to sign the papers. I'm interested in both the Forged Silver and Silver Moon with Ebony interiors. The dealer has both colours in stock so I'll see in person which one I prefer.

Is this a decent price compared to what other's paid in the North East? Thanks.

 

Seems like a darned good deal. Even without nominal tax included, $437/mo is excellent. Our 6.25 on vehicles hurts a bit, since we actually pay tax on the entire 'purchase' price. Frankly, that 59% residual seems a bit high for 36k miles, but I'm coming from Volvo-land where the residual would be more like 48-50 on that lease.

Allowing for ~5% tax and including your 'down payment', you're only paying $17.5K for three years of a current $40K vehicle. That's a fair bit better than the 'factory' deal I got on the FWD Tech in August.

Well done.

 

Why would you want to put that much money down? If the car is totaled as soon as you drive off the lot, you're out the $2.5k. Insurance will get you out of the lease, but won't reimburse you for the $2.5k because the value of a new car depreciates at least that much once you drive it off the lot...

I'm hoping to lease an AWD base for < $500/month. I went to a dealer who said that's probably doable once my lease is up (or up to 4 months before then). She also said that the tech package would be about $20-30/month more. I only need 10k miles/year though.

Based on your numbers, it sounds like you could still get your AWD w/ tech for under $500/month with nothing down other than first month payment.... which is something I'd definitely do!

 

^^ I have heard the same argument many times too, even from my dealership. When you lease, don't put any money down, its best to leave that money in your bank account and top up your payment money a month at a time rather than pluck it down at the start of the lease.

 

Sorry for the naive question but are lease taxes based on total price of vehicle or the total price of the lease? And does that vary state to state?

 

It does vary from state to state. South Carolina has a very low cap on sales tax; in Georgia, we paid the taxes with the monthly payment as a 'use tax' and in Texas, we're taxed on the total vehicle value(presumably, the 'unused' tax payment will be credited toward a new lease---similar to a 'trade in').

Dealing with $40K vehicles makes it worth checking on sales or use taxes. For example, even though I sold my XC60 to the dealer for cash, the transaction was treated as a trade-in, thus saving me the 6.25% 'tax' on the value of my trade($25K x 6.25%). I paid sales tax on the full value of the RDX minus the value of my 'trade'.

 

Generally, this is true. However, in this age of very low interest rates, things are a bit different from the 'old days' when a 'down payment' of any sort could save considerable interest money over time. Folks my age can remember interest rates of 14-18% on car purchases/leases. In theory, a 'down payment' on a lease could save quite a bit of money--somewhat akin to the down payment on a purchase.

The doomsday scenario of a totaled vehicle early in the lease is worth considering...leading to another discussion..."gap insurance".

There's also some smoke and mirrors involved with getting 'money up front' as it relates to commissions, etc. It can benefit the dealer/salesperson/F&I person to collect up-front money; but I'll leave that to the insiders to explain.

 

Here in MA we pay sales tax on the monthly payment each month. Sales tax here is 7.25%. When I lived in Ohio one had to prepay the sales tax for the lease up front.

 

Only reason I put money down up front is because I had a few $K of negative equity in my trade and didn't want a payment over $500 per month. My down payment is equal to my negative equity :-)

 

^^ I hear you about wanting to keep the payment below a certain number...it makes sense. That being said, if you are self disciplined, you can keep the money you have for a down payment and then transfer that monthly portion into your checking account when the payment is ready to be withdrawn.

For example, if you have 2500$, over 36 months, that is 69.44$ a month. So what you do is set up a recurring transfer from your savings account to your checking account on the day prior to your lease payment.

This way, the 506.44$ a month is still in theory 437$ of new money and you just add 69.44$ a month from the money you have sitting in your savings account. At the end of the day, its the same amount of money but if something happens to your RDX on the day your drive off the lot, your money is in your bank account

Its just a different way of looking at the money aspect but the catch is this....you need to be disciplined and not spend that 2500$ Alot of people can't do that...I am the king when it comes to fiscal responsibility but also why I am doing so well financially for my age.

 

I hear you and it makes sense. I'd certainly have no problem putting the money aside and not spending it but I'm so busy most of the time I don't have to time to ensure transfers are taking place. I operate on the path of least resistance and for me that is dropping the $2500 up front.

Now that I think about it, $2500 buys a lot of farkles for my BMW bike

 

I bought my previous 2012 Camry hybrid in cash , great deal, drove it for nearly 3 months and got my $$ back for it when i sold it. No depreciation. I gotmmore for it then i paid for it. Lol.

I agree that the purpose of a lease is to put $0 down. Only put $$ down if you are going to purchase it.

 

I would never trade in if i have negative equity. Unless the car had serious issues. Etc. Then you are just adding further to your debt.

 

Unless you own the dealership that is impossible. No one is going to pay the same or more for a used car than they could for a new one. 3 months or 3 weeks, that car is used and will take a 15% - 20% depreciation hit the second you drive it off the lot.

 

I'm not you and I hated the car enough that taking a few grand hit was irrelevent to me. Everyone is different.

 

Did you mention what kind of car you traded in with the negative equity?

Also, I'll admit that I put $3,100 down on my '06 RSX Type-S lease. It kept the payment down to $261/month for 15k miles/year. My financial situation at the time dictated a low monthly payment. I sold my '97 200sx SE-R and rather than putting the money in the bank, I put it into the Acura.

 

[quote=CoachRick;14241923]

The doomsday scenario of a totaled vehicle early in the lease is worth considering...leading to another discussion..."gap insurance".

Nowadays, most leases include GAP insurance, I know all Acura/Honda financial leases include it. Most banks will not lease a car without it because theoretically you are almost always upside down on a lease. They will not take the risk of a total loss without knowing the price difference is taken care of. With respect to financing a vehicle, however, it is still "optional". ALWAYS get GAP insurance people!! Imagine purchasing a vehicle in February with 2K down for 35K, and the car is only worth 28K by November. Not only do you lose your down payment, but you also have to scrape up ANOTHER 5K from your own pocket....no bueno. Usually its only 10-15 dollars a month, and well worth it. If the dealership does not offer it to you, then ask them, its available on every new car by law!

 

It was a 2013 Subaru Outback Limited 2.5 with Nav and Sunroof Pkg's. It was a tank in the snow, unstopable but it sucked everywhere else

Build quality was crap, was unplanted at highway speeds and compared to most other cars I've owned just felt tinny.

 

In most cases you are correct. But in my case I paid $23,987 total out the door for my 2012 Camry Hybrid LE, everything, since I pay cash for my cars (which was very great deal) and I got $24k for the trade in on my RDX.

 

I almost bought a 2013 Subaru Outback Limited 3.6 loaded, but went for the Acura RDX instead. I'm glad I did. The 2.5 Outback was very under-powered that I drove and noisy 4 cyl sound. The 3.6 makes a world of diff in that car.

Also in my case, my insurance company wanted $150 per year more for the Outback 3.6 vs my Acura.. Acura saves me on insurance too.

 

Agree to disagree..

 

That's good to know. I almost bought an '11 3.6r Ltd plus a bunch of options/accessories. I put down a $500 deposit and waited 3 months for it to come in. When it did, I took it for a test drive, but the steering wheel vibrated on the highway between 70-75mph, so I refused delivery and got my deposit back. I ended up leasing a GTI instead.

My wife really loved the '13 2.5i, but went with a '12 Passat 2.5 SE when our salesguy said it would be only $315/month to lease with nothing down.

I feel like the OB is more practical, but the steering/wandering issue with the OB is a deal breaker for me, notwithstanding the superior AWD system. See http://www.subaruoutback.org/forums/...wandering.html.

 

Paying cash for a car these days means no special discounts. Dealers make more on a financed car than a cash deal.

 

Be happy you didn't buy one. I drove the 6 cylinder but it didn't 'feel' that different although it was more peppy. That engine doesn't get good mileage and I have a 94 mile per day commute, 80% highway so I went with the 4 cylinder. Once cruising it was okay upto 80Mph.

 

Hah! I had the '85 GL 4wd wagon. One of the last before their switch to fuel injection. It got me through some snow, but otherwise couldn't get out of its own way . Put 42K miles on that pup in one year. Full digital dash, but analog push-button radio Ah, the good old days!

 

I've heard the 3.6 sucks gas, more than some other V6's on the market. But it was rated at around 7 or low 7 second 0-60 and felt decent when I hammered it. The ultimate reason I didn't buy the 3.6 Outback wagon was because in my area they are extremely scarce. (2.5 are plentiful) I'd have to order it and wait 2 or 3 months. The Acura was more $$, but is a better vehicle in most areas, in my opinion.

 

Yes agreed, that is what the dealers have told me. I will finance my cars if I get 0%.

 

They made improvements to the suspension for 2013 on the Outback, less body lean, etc. It wasn't worth ordering and waiting 3 months. It's not like this some kind of special edtion sports car, LOL! Even my GTO I didn't wait that long..