u/Exciting_Station3474

Help me to understand lease vs financing math and how lease is cheaper???

Yesterday I saw a tread about leasing cars and many redditors said there lease is cheaper thanfinancing.. So i decided to look into it.

I know nothing about leasing.

I picked a local subaru dealership and checked deals.

So a new subaru forester is 32k.

Financing- $900/month- 36 months = 32 200.

Lease - $4000 down + 270/month ×36 = 13 720.

They got a few 3y old foresters, 30-40k miles, on the lot after lease. Priced 28k+/-1k.

So, will be buyout price of leased forester - 28k after 3 years?

Unless buyout price is under 20k, how's this cheaper than financing???

Thanks.

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u/Exciting_Station3474 — 5 days ago