2011, 2012 Nissan Leaf Leasing Information

[evnow]

Exactly and I did the math in another thread, but if you put $4000 down to save .0049 money factor, you'd save $1080 over the life of a 3 year lease, but if you put that $4000 into a 3-yr CD, you'd only make $250 and have to pay income taxes on it. So it's almost a 25% return on your money.

Here are the rates - so let us say $4K takes you from Tier 4 to Tier 0. That is a saving of 0.0023 MF. That would save you some $500. But if you go only 1 Tier up - it is a saving of 0.0002 (or $50) and won't be useful.

Tier 0 — 0.00204 (credit score Above 740) i.e. 4.9%
Tier 1 — 0.00224 (credit score 700-739)
Tier 2 — 0.00264 (credit score 660-699)
Tier 3 — 0.00369 (credit score 620-659)
Tier 4 — 0.00454 (credit score 600-619)

 

[xtremeflyer]

Exactly and I did the math in another thread, but if you put $4000 down to save .0007 money factor, you'd save $1080 over the life of a 3 year lease, but if you put that $4000 into a 3-yr CD, you'd only make $250 and have to pay income taxes on it. So it's almost a 25% return on your money.

Here are the rates - so let us say $4K takes you from Tier 4 to Tier 0. That is a saving of 0.0023 MF. That would save you some $500. But if you go only 1 Tier up - it is a saving of 0.0002 (or $50) and won't be useful.

I guess I'm not explaining how it works (I was only really interested in if NMAC does it), but adding security deposits has nothing to do with changing tiers. A security deposit is equal to 1 months payment, to the nearest $50. So if a payment is going to be $370, the sercurity deposit would be $400. Most leasing companies allow you to give Multiple Security Deposits (MSD) up to 7 times (Including Infiniti Finance, but I still can't find if NMAC does it). Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment. At the end of the lease, you'd get your entire $2800 back (minus damages) and as Boomer explained, it is not subject to loss in case of a total loss of vehicle in an accident, meaning you are better off putting the money towards the security deposit than you are towards the down payment.

 

[evnow]

Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00155 (3.7%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment.

So, I could potentially put $8K deposit and get zero money factor ? That should save about $100 a month or $3,600 over 3 years.

 

[IBELEAF]

This is some interesting information and since I never leased before I am trying to catch up here. Can someone please sum this up once we have definite answers?

 

[DaveinOlyWA]

hmmm. i think i need more clarification on how the lease works...then again, maybe i need a LOT more clarification.

i had intended to put $10,000 down when i purchased the car. if i cannot get reasonable financing. i think i will lease and i plan to purchase anyway, so will probably put the same down minus any of the processing fees involved, but...

i have to agree with evnow; some of the information does not seem to jive. and not sure why an additional downpayment would change the interest on the lease unless the residual would not change no matter what??

 

[wwhitney]

What is the acquisition fee, when is it paid, and if it paid up front, is it included in the down payment?

Extra payment in the beginning.

OK, so the upfront costs are the down payment ($1,999) and the acquisition fee. The sales tax is paid on each lease payment. What happens to the title and registration and doc fees that you would have to pay if you bought the car? Are there any other upfront fees?

Thanks, Wayne

 

[xtremeflyer]

Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment.

So, I could potentially put $8K deposit and get zero money factor ? That should save about $100 a month or $3,600 over 3 years.

Unfortunately no, most Leasing companies cap it at 7 deposits or a .0007 reduction. (note above, I put the new money factor would be .00155, it should be .00134)

 

[Coffee_Slurry]

I guess I'm not explaining how it works (I was only really interested in if NMAC does it), but adding security deposits has nothing to do with changing tiers. A security deposit is equal to 1 months payment, to the nearest $50. So if a payment is going to be $370, the sercurity deposit would be $400. Most leasing companies allow you to give Multiple Security Deposits (MSD) up to 7 times (Including Infiniti Finance, but I still can't find if NMAC does it). Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..

Thanks for explaining this -- very helpful! If anyone knows the NMAC rules, please post.

Is this something we should start working out with the selected dealers now (after placing the order), or is this something best done on delivery day with the Finance person at the dealership?

 

[evnow]

Unfortunately no, most Leasing companies cap it at 7 deposits or a .0007 reduction. (note above, I put the new money factor would be .00155, it should be .00134)

Oh well ...

According to this (5 year old) NMAC doesn't allow MF reduction.

http://townhall-talk.edmunds.com/direct/view/.ee9394d/21056

 

[xtremeflyer]

Example:

Normal Lease: (SL, 36 mo, 15,000mi)
MSRP: $33720
Dest Charge: $820
Tax Rebate: $7500
Drive Off Costs: $2594 ($1999 + Acq $595)

Payments: MF .00204 (4.9%)
Depreciation: $311.83
Lease Fee: $83.51
Tax (8.75%): $34.59
Total Payment: $429.94

Total Cost: $18036.90 ($2594 + $429.94 x 35 + Disp Fee $395)

--------

Lease with Multiple Security Deposts (MSD): (SL, 36 mo, 15,000 mi)
MSRP: $33.720
Dest Charge: $820
Tax Rebate: $7500
Drive off Costs: $5744 ($1999 + Acq $595 + MSD $3150 ($450*7))

Payments: MF .00135 (3.2%)
Depreciation: $311.83
Lease Fee: $54.54
Tax (8.75%): $32.06
Total Payment: $398.43

Total Cost: $16,934.05 ($5744 + $398.43 x 35 + Disp Fee $395 - $3150 Depost Return)

Savings: $1102.85 on a $3150 investment = 35% return over 3 years (10.5% APY)

----------------------

Lease with Extra $3150 down: (SL, 36 mo, 15,000 mi)
MSRP: $33.720
Dest Charge: $820
Tax Rebate: $7500
Drive off Costs: $5744 ($1999 + Acq $595 + Extra $3150 down)

Payments: MF .00204 (4.9%)
Depreciation: $221.47
Lease Fee: $76.86
Tax (8.75%): $26.10
Total Payment: $324.44

Total Cost: $17494.40 ($5744 + $324.44 x 35 + Disp Fee $395)

So putting down the $3150 instead of MSDs costs you $500 more (but saves you $600 off the normal lease) and puts your money at greater risk in case of an accident.

Now, unfortunately I can't find anywhere that says if NMAC allows this or not, Infiniti Finance does (I did this on my old G35 Coupe). I have sent an email out to my dealer.

 

[omkar]

Example:

Thank you very much for providing this example! It has been very educational for me. Please keep us informed on what you hear regarding the MSD.

 

[xtremeflyer]

Example:

Thank you very much for providing this example! It has been very educational for me. Please keep us informed on what you hear regarding the MSD.

Glad I could educate, unfortunately it looks like I may have gotten people excited of nothing (including myself). My dealer has come back and said that NMAC does not do Security Deposits.. Oh well.. If you ever look into a luxury lease, this should be of help

 

[LEAFfan]

What is the acquisition fee, when is it paid, and if it paid up front, is it included in the down payment?

Extra payment in the beginning.

OK, so the upfront costs are the down payment ($1,999) and the acquisition fee. The sales tax is paid on each lease payment. What happens to the title and registration and doc fees that you would have to pay if you bought the car? Are there any other upfront fees?

Thanks, Wayne

The title and registration you pay when you register the vehicle (at least that's what I'm going to do). The Doc fee and Destination fee is added into the lease cost, so the only upfront fees are what you have, dp and af.

 

[Dav]

Question: You can get financing anywhere... is NMAC the only way to lease the LEAF?

 

[evnow]

Question: You can get financing anywhere... is NMAC the only way to lease the LEAF?

I doubt anyone else will lease it for now ...

 

[TRONZ]

Great thread! Lease calculator is very handy.

 

[evnow]

Cash Down - $12,000 ($7000 Net after CVRP Rebate)

That is risky. In case the car gets totalled, you lose that money. This has been discussed elesewhere. You are better off putting that money in a CD and use the money to pay.

ps : This has been discussed in other Lease threads.

 

[DaveinOlyWA]

$12,000 down and....why are u leasing?

Forgive me if I am wrong but I thought leasing was being able to get a car with reasonable monthly payments when u did not. Have a decent downpaayment

 

[DaveinOlyWA]

not sure which thread i should have this in, but after being "initially" approved by capital one auto finance, i got a followup letter that advises me that i my loan was declined.

reason; "incomplete or missing credit history"

so am i being penalized because i have purchased 4 new cars in the past 6 years and paid cash for all of them??

this completely blows up my plans. maybe leasing after all. if i cant get a loan under 3% i will lose too much. one thing is my credit score is high enough to qualify for top tier lease rates.

 

[malloryk]

I don't understand.. how can you have a high credit score but no credit history?