Auto leasing question

[OZMDD]

The lease on our Subaru is ending next month, so we are shopping. Looking for some knowledge on the financial side. What would the range of money factor be for someone with 800+ fico score? IE: What's a poor money factor, and what's stellar?

We have been offered .00185 on the 2016 Outback, which roughly translates to an APR of 4.4%, and that seems on the high side when compared to the rates we can get on a purchase (1.9-2.2%)

[Webspoke]

That sounds poor, unless they have the residual way up to keep the payments down. MFs should be close to normal loan rates at a minimum.

[OZMDD]

Thanks, I'm thinking the same. The RV is a little inflated, so that might be part of it, but 1.9% APR is the going rate for us at the CU and most dealer financing specials. I would expect the MF to be in the ballpark, certainly under 3%/0.00135

[CosmosMpower]

3-4% is about right for lease. They are usually higher than straight traditional finance. For instance BMW's MF for top tier credit is .00131 which is about 3.1% but they offer 1.9 or better for 36 month finance. I'd worry more about residual value of the car you're looking at if you're going to lease.

In general Subaru finance/lease rates suck, they think 2.5% is a smoking good deal for finance, LOL.