rops:The Lancer Evolution, in my past experience, is not a very good candidate for a lease. Let me explain how a lease works, for those of you who aren't quite familiar with the mechanics of how one is structured.
When a car is available for a lease, that means that a financial institution or leasing company is purchasing the car in order to 'rent' it to you. Therefore, in order for a lease to exist, a financial institution or leasing company must find a vehicle that they deem a profitable business venture, as nobody goes into business to lose money.
So the financial institution or leasing company creates a structured breakdown of a few things:
1) What the residual value is for each term. Residual value is what the company believes the car will be worth after the term of your lease. Subtract the residual value from the selling price of the car and you've got what the company deems as your total capitalization cost on the vehicle. For example, if you found a vehicle that you are looking to lease, and the selling price is $20k and the residual value after 24 months is 50%, you're looking at capitalizing $10k. Divide $10k by 24 months and that's $416.67 per month. OUCH! But how is it that some leases for 24 months are the best deals? Here's how: The manufacturer can supply what is known as a 'lease cash rebate' that is strictly for leases. Now let's say the manufacturer of the $20k vehicle offers a $4,000 factory lease cash rebate, your capitalization cost is reduced by $4,000 and is now $6,000. Now you're down to $250 per month. See how it's working out? Rule of thumb is that the greater the lease cash rebate, the better the payment will work out for you on a lower month term.
2) Money factor. This is simply the interest that is tacked onto the deal so that a leasing company can make their money. Money factors usually look like very small numbers. Don't be fooled. A money factor of 0.0038 may seem like an awfully small number, but it translates into a 9.12% interest rate.
MMCA did have a Lancer Evolution lease program on the 2006 model year. You would have paid out the ass for it, but it did exist. Program 501AL0801A.
OK, let's do the simple breakdown:
On a 36 month lease, the residual value on a Lancer Evolution IX was 40%. Let's say you got an Evo IX MR for $35,000. 40% of $35k is $14k. You'll be capitalizing $21k for 3 years and with no lease cash rebates on the Evo, that comes out to a base of $583.33 before taxes, interest, motor vehicle, etc... Depending on how your credit is, your money factor can be from 0.00336 all the way up to 0.00496 (11.904%... DAYYYYYYAM!!!). And then you have to consider that your mileage is limited to 12k miles per year. Need 15k? Subtract 2% of the residual value.
I'm sure you'll see why many dealers did not mess with Lancer Evolution leases. Once you went over all the numbers with an Evo customer, 99% of the time they would just say, "For that price, I'll just buy the fucking thing!" =).
You'll be fine, says my gut. If you pay sticker for the car with options and such, and get even $18K for your STi, your payments should be about $400 a month off the top of my head.Thanks for the great info. I was leaning towards buying anyway. I just want to get the monthly payments into the 400's, even if it's high 400's. It all depends on what I get on trade in for my STi.