2013/2014 Nissan Leaf Lease Information

[evnow]

Can someone explain why 3 year lease rates are higher than 2 year? Also, what are the usual rate increases for higher annual mileage?

Two reasons
- the down payment gets divided by 24 for 2 years and 36 for 3 years. So, 2 year lease will look cheaper. If you calculate with zero down, the difference will be less.
- the way Nissan has structured the residual is such that 2 years is cheaper than 3 years

 

[Sublime]

I've added VPP prices to the first post.

With 1,995 down, here are the lease monthly estimates. Taxes, Fees extra. VPP prices (invoice-1,000) are in brackets.

S 24 months : $199 ($71)
SV 24 months : $259 ($123)
SL 24 months : $334 ($174)

S 36 months : $249 ($168)
SV 36 months : $309 ($218)
SL 36 months : $364 ($266)

In Georgia (and I assume the whole SE) they are doing $1999 at time of lease and $199 a month for 36 months on the S. How does that change your numbers?

 

[Sublime]

EVNow... or any other lease experts. Nissan currently lists this deal:

2013 LEAF SL Lease
36 Months - $296/Month - $1,999 initial payment.
Excludes taxes, title, and license. $1,999 initial payment required at consummation. (Includes $1,703 consumer down payment, $296 first month payment.) (INCLUDES $7,500 manufacturer's rebate applied to $296 MONTH lease. Offer valid only when financed through Nissan Motor Acceptance Corporation.) Subject to residency restriction. Varies by Nissan Region.
2013 LEAF SL Lease model 17213 subject to availability to well-qualified lessees through Nissan-Infiniti LT. $35,690 MSRP incl. destination charge. Net capitalized cost of $25,377 includes a $595 non-refundable acquisition fee. Dealer contribution may affect actual price set by dealer. Monthly payments total $10,656 At lease end, purchase for $17,845, plus purchase option fee up to $300 (except KS & WI), plus tax, or pay excess wear & use plus $0.15 per mile for mileage over 12,000 miles per year. Lessee is responsible for maintenance and repairs. A disposition fee is due at termination of lease term. No security deposit required. See participating dealer for details. Offer ends 02/28/2013.

Pulling out the interesting numbers I get:
$35690 price
-$7500 rebate
-$1703 down payment
+$595 acquisition fee
=================
$26487 (how do they come to $25,377 net capitalization?)

Lease end purchase price of $17845 / $35690 = 0.5 residual

If I put in a money factor of 0.002, even with their phantom $25,377, I come out with a monthly payment of $317 (not $296).

The only way I can come up with $296 is to set the money factor to 0.0015. Is that what this deal entails? A 3.6% APR?

 

[evnow]

Pulling out the interesting numbers I get:
$35690 price
-$7500 rebate
-$1703 down payment
+$595 acquisition fee
=================
$26487 (how do they come to $25,377 net capitalization?)

Not clear - may be they are including some other rebate to bring down the price.

I get a net capitalization of about 2k more.

 

[wantonsoup]

Regarding the SL lease:

So it'll cost you $12,954 total to lease the car for 36 months, (plus tax, title, etc).

Or you could likely buy it outright for $34,690-$7500 = $27,190 ($1k under sticker which is my goal)

The break even point is if the value in 36 months is $14,236. If it's worth more than that, you'd have been better off buying it outright. If it's worth less than that, you were better off leasing. Of course purchasing it after the lease it up seems like a terrible deal then at over $18k after fees.

My guess is that the real selling price after 36 months will be around $15-16k on the private party market, and $16k-18k retail at dealers. If the car does really well, the federal tax incentive might disappear by then and hold retail prices steady too.

I'm still on the fence, but you pay a lot of fees for the convenience of a lease it seems.

 

[Sublime]

Regarding the SL lease:

So it'll cost you $12,954 total to lease the car for 36 months, (plus tax, title, etc).

Or you could likely buy it outright for $34,690-$7500 = $27,190 ($1k under sticker which is my goal)

The break even point is if the value in 36 months is $14,236. If it's worth more than that, you'd have been better off buying it outright. If it's worth less than that, you were better off leasing. Of course purchasing it after the lease it up seems like a terrible deal then at over $18k after fees.

My guess is that the real selling price after 36 months will be around $15-16k on the private party market, and $16k-18k retail at dealers. If the car does really well, the federal tax incentive might disappear by then and hold retail prices steady too.

I'm still on the fence, but you pay a lot of fees for the convenience of a lease it seems.

One way to look at it, is that you're signing up for a 72 month finance. You pay an additional $600 up front for the option to opt out after 3 years. For the first 3 years you are paying down the principle to make up the difference between the purchase price and 50% of the MSRP (not the purchase price). After those 3 years, if it's really underwater you can opt out and owe nothing more. If its in the black, you pay $300 and you finance the rest for whatever term and rate you can find/want.

At .002 money factor, that's a 4.8 APR, which is higher than you would get at an credit union, but not much and based on my calculations that deal has a lower money factor.

I would never recommend a lease to anyone or buying a new car for that matter. However this is a very rare situation where both make sense. Buying new, because of the federal and state tax rebates. Leasing, because the technology and the market are a bit unpredictable for EVs. In 3 years the tax benefits will be gone (at least from Nissan I'm sure), the tech will be better understood, and possibly advanced a good deal so a lot cheaper. I don't like all that unpredictability, so I'm willing to pay $600 up front as insurance against that risk. Your level of comfort and outlook on the future of EVs may be different from mine and maybe a purchase makes sense to you.

 

[evnow]

My guess is that the real selling price after 36 months will be around $15-16k on the private party market, and $16k-18k retail at dealers. If the car does really well, the federal tax incentive might disappear by then and hold retail prices steady too.

The trade in for 2 year old Leaf SL is already about 15 to 17k. In 3 years I doubt the private party market will be $16k.

 

[wantonsoup]

The trade in for 2 year old Leaf SL is already about 15 to 17k. In 3 years I doubt the private party market will be $16k.

I'm talking retail prices. NADA retail on the 2011 SL right now is $20k. Depreciation is eased in the 3rd year, so in a year I'd bet you a buck the retail price will be $16k-18k.

One way to look at it, is that you're signing up for a 72 month finance. You pay an additional $600 up front for the option to opt out after 3 years.

"ish". By that I mean, when you figure the "down payment" which is really just another fee, the lease fee, and the money factor which is figured on the total car price, it's way more expensive to lease a car with a cap cost of $15k than to buy a car selling for $15k. Many thousands of dollars more. Assuming you could sell the SL outright for $16k after 36 months you've have lost about $2k with a lease.

I'm doing the calculations over and over and can't see how the lease is anything but a very expensive resale guarantee. If the car is worth a dollar over $14,236 you've lost money leasing and potentially missed out on local incentives that don't apply (or don't fully apply) to a lease, too. I think the SL will be worth thousands more than $14k and given that most Leafs will be stripped out base models on the used market might retain a premium resale price with the leather, camera, etc.

Is my math wrong? I want to be convinced to lease if it's fiscally prudent. I just don't see it.

 

[evnow]

The trade in for 2 year old Leaf SL is already about 15 to 17k. In 3 years I doubt the private party market will be $16k.

I'm talking retail prices. NADA retail on the 2011 SL right now is $20k. Depreciation is eased in the 3rd year, so in a year I'd bet you a buck the retail price will be $16k-18k.

What matters is trade in (or private party sale) value. Retail is what the dealer charges you, when you buy a used car. Not useful for our purposes here.

BTW, when I say 3 years, I'm talking about MY13 value in 3 years. It will depend a lot of Fed tax credit status. If the credit still stands, the tradein/pvt sale price will be less than the residual.

I'm not sure what calculations you are doing - but make sure to include finance charges when calculating "buy" price.

 

[wantonsoup]

Speculating what the MY2013 will be worth in 3 years is difficult because they haven't even been delivered to customers yet. That's why I'm working off the only data points we have, which are MY2011 cars.

IMHO using trade-in value means you're giving the potential resale price of the car short shrift, making a lease seem artificially better. If you trade-in a car, you're giving your vehicle away at far less than retail pricing for the convenience of not having to sell it yourself. You're giving 100% of the profit of selling the used car to the dealer instead of benefiting yourself. If it's worth thousands of dollars to you, that's fine, it's a personal choice. But trade-in is not the actual value of the vehicle, it's a lowball price the dealer pays to buy your car at wholesale pricing. With Cars.com, AutoTrader.com, Craigslist and eBay, it's super easy to sell a car yourself these days and pocket the extra money. So in conclusion, when figuring out the value of a car in 3 years, use the retail value. Private Party may end up a bit lower, but trade-in is just admitting you're going to lose your shirt in the transaction.

 

[edatoakrun]

The trade in for 2 year old Leaf SL is already about 15 to 17k. In 3 years I doubt the private party market will be $16k.

I'm talking retail prices. NADA retail on the 2011 SL right now is $20k. Depreciation is eased in the 3rd year, so in a year I'd bet you a buck the retail price will be $16k-18k.

What matters is trade in (or private party sale) value. Retail is what the dealer charges you, when you buy a used car. Not useful for our purposes here.

BTW, when I say 3 years, I'm talking about MY13 value in 3 years. It will depend a lot of Fed tax credit status. If the credit still stands, the tradein/pvt sale price will be less than the residual....

I don't see how you can state that as a fact. IMO, the biggest factor in future LEAF prices will be future gasoline prices, and both are highly uncertain.

Whether it's the gas price run-up, or the dwindling number of new 2012 "closeout" available, it appears volatile used LEAF prices may be bumping up a bit, recently.

Looks to me, from completed sales reports, that the retail price of my LEAF with ~15,400 miles is probably pretty close to $19k today.

http://motors.completed.shop.ebay.com/Cars-Trucks-/6001/i.html?_ipg=50&_from=R7&_pcats=6000&_sofindtype=22&_attr=39%2B1966%2C41%2B-24%2C10239%2B-24%2C&_yrh=2013&_yrl=2011&_sop=7&_cat=6001&_gcs=13&LH_Complete=1&_armrs=1&_nkw=Nissan+LEAF" onclick="window.open(this.href);return false;

My LEAF lease contract residual was just under $16k.

My savings by converting my lease to a sale ~a year ago was ~$1k, by dumping the high interest rate lease, the lowest money factor offered in 2011.

So, I will be ahead by buying off my lease, if I can sell for greater than ~$15k ~15 months from now, and would have been a bit better off, if I had initially bought (and been able to recover the entire tax credit myself) rather than leased, as I did originally.

Of course, Nissan could even sweeten all present/future LEAF purchase deals with a "loyalty program" for trading in either LEAFs or battery packs, at any point in the future.

 

[evnow]

This thread has gone too OT. I'll chop off OT posts into another lease discussion thread.

http://www.mynissanleaf.com/viewtopic.php?f=23&t=11579" onclick="window.open(this.href);return false;

 

[shikataganai]

The MF on the 2012s is .0003. Did they raise it for 2013?

At the end of the year it was actually 0.00003. Four zeros after the decimal and a 3.

Here's the complete deal I was quoted on a 2012 SL, in WA state so no extra tax credits from the state but no sales tax, either:

Capitalized cost of $9,775 off the invoice price, money factor of 0.00003, and for a 12k/yr lease residual values of 56% and 48% for 24 or 36 month terms, respectively. (Other fees and charges are Nissan's $595 acquisition fee and $370 in title charges.)

Compared to that smoking 2012 deal the 2013 leases aren't even close… yet. I have faith that Nissan will lower the MF and dealers will budge on the capitalized cost (e.g. $10k off of invoice! or $2.5k past the tax credit, in other terms) later in the year.

 

[edatoakrun]

What are the money factors and equivalent interest rates on lease terms currently offered?

All at ~4.8%, as stated previously?

 

[evnow]

Compared to that smoking 2012 deal the 2013 leases aren't even close… yet. I have faith that Nissan will lower the MF and dealers will budge on the capitalized cost (e.g. $10k off of invoice! or $2.5k past the tax credit, in other terms) later in the year.

No Nissan won't do it. Remember they did a major reduction of MSRP on MY13 compared to MY12. They have higher residuals on MY13 compared to MY12. They are already offering $199 lease. If you can get VPP price, you can get even an SL for about $190.

 

[evnow]

What are the money factors and equivalent interest rates on lease terms currently offered?

All at ~4.8%, as stated previously?

See the first post. S has lower MF than SV & SL.

 

[tacshose]

Hello,

First post and GREAT website I have been reading all the threads and have been wanting a Leaf for awhile. I finally got to drive one at the Chicago Auto Show and LOVED IT. Well my local dealer, in Missouri, has a just delivered 2013 Nissan Leaf S. I have been negotaiting over the phone and doubt I will even test drive before signing the paperwork, ha don't wanna burn charged miles I might need to get home

My only hesistation is the Model S over the SV, is it worth it? MOST IMPORTANTLY, You lease experts what should I offer on a SV model to match my deal on the S?

Due to the leasing question I placed it in this thread, please move or tell me if I was wrong to do that.

The Model S Deal:
2013 Nissan Leaf S
24 Month Close Ended Lease
12,000 Miles Per Year
$201 a month including all taxes, titles, and fees
$0 Down
First payment of $201 due at signing.

Also, anyone know if GAP Insurance is included in Nissan Leases?

Thanks!

 

[MrIanB]

Hello,

First post and GREAT website I have been reading all the threads and have been wanting a Leaf for awhile. I finally got to drive one at the Chicago Auto Show and LOVED IT. Well my local dealer has a just delivered 2013 Nissan Leaf S. I have been negotaiting over the phone and doubt I will even test drive before signing the paperwork, ha don't wanna burn charged miles I might need to get home

My only hesistation is the Model S over the SV, is it worth it? MOST IMPORTANTLY, You lease experts what should I offer on a SV model to match my deal on the S?

Due to the leasing question I placed it in this thread, please move or tell me if I was wrong to do that.

The Model S Deal:
2013 Nissan Leaf S
24 Month Close Ended Lease
12,000 Miles Per Year
$201 a month including all taxes, titles, and fees
$0 Down
First payment of $201 due at signing.

Also, anyone know if GAP Insurance is included in Nissan Leases?

Thanks!

Yes, gap ins is included but always double check the paper work before signing in case it has changed.

Good luck,

Ian B

 

[shikataganai]

Compared to that smoking 2012 deal the 2013 leases aren't even close… yet. I have faith that Nissan will lower the MF and dealers will budge on the capitalized cost (e.g. $10k off of invoice! or $2.5k past the tax credit, in other terms) later in the year.

No Nissan won't do it. Remember they did a major reduction of MSRP on MY13 compared to MY12. They have higher residuals on MY13 compared to MY12. They are already offering $199 lease. If you can get VPP price, you can get even an SL for about $190.

I'll be in the market via Campbell Nissan Nissan up on 205th St (near the Costco) sometime this fall. They're the ones that offered that sweet '12 lease deal and they also participate in the Costco Auto Program, so if Nissan doesn't play ball I'll at least be able to get the Costco price if nothing else…

 

[wantonsoup]

There is no Costco deal currently, what was the Costco deal last year