$5000 Customer Discount for Lease Buyout

[LTLFTcomposite]

The dealer who leased me mine said just the opposite, there would be no dealer fee but thought the $300 NMAC buyout fee would still apply.
My guess is the dealer figured hey we can hit this guy for another six hinge, why not.

 

[TimLee]

...
I am still curious why Nissan is offering so much cash on a lease buyout. I have never leased before (and probably never will again). But it seems more logical to encourage people buy a new car than buyout / extend their lease. Unless Nissan is sitting on a growing pile of lease returns.

I think they finally looked at the data from losses on 2011 lease returns, and saw auction prices continuing to plunge, and with the negative perception that creates for the LEAF brand that it was the right business decision to offer a deal that would keep more people buying out their lease.

Maybe saves them $1,000 to $2,000 per lease return, helps a bit on LEAF resale values.
Plus better to have customers still driving a LEAF rather than leaving the brand for something else.

It seems like a reasonable deal that is a Win - Win.

Why they didn't catch on sooner and help out the people that leased a 2011 is strange.
But one thing Nissan has clearly demonstrated is they are a large company that is very slow to respond.
Not too many 2011s are still on lease.
A few like TomT with a four year lease though.
Nissan really should extend a similar offer on the 2011s even though they are too late for many of them

 

[TomT]

I MIGHT consider it if I knew I would be able to hit the magic mark for a new battery before my mileage ran out but as that is not likely to happen, I'll pass... My Leaf will become one of those out back waiting to go to Leaf heaven come March 1st...

 

[MrIanB]

I have a 2011 going back in 4 months with 10k miles due to lack of driving. Residual is 15k.

Ian B

 

[leafedbehind]

Great -- just more data to rub it in that I made a mistake purchasing my 2011. I'm into year four of ownership, and I plan to hold on to it. Suits our needs as our "second" EV.

 

[cwerdna]

Remember they took the 7500 tax credit from the govt. If they offer that back then I would bite.

I'm not sure how your deal was worked out, but NMAC gave me the full $7500 back in the form of a down payment on the lease. To me, that was a fair deal since I would have only qualified for about $3000 given my tax burden. I know that some dealers are sketchy and try to pocket the $7500 for themselves. I hope that didn't happen to you..

Yep. Nissan/NMAC passed on that $7500 savings to us all (most?) consumers in the form of a cheaper lease. Agree, it was definitely a fair deal as it is. Some automakers gave and/or still giving a MUCH crappier deal on leases (not passing all of that tax credit savings on.)

 

[DaveEV]

Great -- just more data to rub it in that I made a mistake purchasing my 2011. I'm into year four of ownership, and I plan to hold on to it. Suits our needs as our "second" EV.

Not sure how you get to that conclusion? The lease deals on the '11 LEAFs were not very good. It's probably about a wash financially, even with the $5k discount.

 

[dgpcolorado]

Not sure how you get to that conclusion? The lease deals on the '11 LEAFs were not very good. It's probably about a wash financially, even with the $5k discount.

You threw some numbers at me some months back and managed to persuade me that my decision to purchase was, at worst, a wash with leasing, given the lease deals available in 2011. (I also got a $5400 Colorado tax credit on my purchase; it would have been much lower on a lease.)

Since then things have worked out for the best: the first ever L2 public charge station in my destination city, which was becoming a stretch in winter with my declining range, has made my life a lot easier, albeit with some time spent at the charge station each trip (I just walk to a grocery store and do my shopping). I also can take the much longer paved road route and greatly reduce the number of miles of driving on dirt roads.

And the possible release of the Tesla Model III in 2017 or 2018 means that I can just keep going with my current LEAF until I find out if the Tesla really will meet the announced specs and price range. Keeping my current LEAF for six to seven years seems likely to be more cost effective than leasing two LEAFs, although this $5000 deal for buying out a lease would have been very attractive.

Not that I could have known any of this when I ordered my LEAF in August of 2011. It has been an interesting journey!

 

[Nubo]

I am still curious why Nissan is offering so much cash on a lease buyout. I have never leased before (and probably never will again). But it seems more logical to encourage people buy a new car than buyout / extend their lease. Unless Nissan is sitting on a growing pile of lease returns.

It's all about the degradation of the 1st gen battery packs, I think. The chickens are finally coming home to roost. I think there was mention some time ago that a large number of lease returns were going to Norway; it may be that market is getting saturated. Just as the sales of LEAF began taking off in 2012, now the rate of lease returns are going to ramp up. The value-loss of a car with a degraded battery is now exposed to the open market, which marks the official end of Nissan's stonewalling. It's finally biting them in the ***.

 

[MikeAtCerritos]

Remember they took the 7500 tax credit from the govt. If they offer that back then I would bite.

I'm not sure how your deal was worked out, but NMAC gave me the full $7500 back in the form of a down payment on the lease. To me, that was a fair deal since I would have only qualified for about $3000 given my tax burden. I know that some dealers are sketchy and try to pocket the $7500 for themselves. I hope that didn't happen to you..

Yep. Nissan/NMAC passed on that $7500 savings to us all (most?) consumers in the form of a cheaper lease. Agree, it was definitely a fair deal as it is. Some automakers gave and/or still giving a MUCH crappier deal on leases (not passing all of that tax credit savings on.)

Not passing all of the tax credit on? Those savings/rebates are from NMAC/NISSAN CORPORATE. The dealer CANNOT keep any of the rebates for themselves. It's just not possible. Lets not forget that the rebate Nissan gives when leasing is GREATER than the $7,500 federal tax incentive. Current models receive as much as $8,675 in rebates when leasing.

 

[adric22]

Great -- just more data to rub it in that I made a mistake purchasing my 2011. I'm into year four of ownership, and I plan to hold on to it. Suits our needs as our "second" EV.

Not sure how you get to that conclusion? The lease deals on the '11 LEAFs were not very good. It's probably about a wash financially, even with the $5k discount.

Indeed.. When our 3-year lease on our 2011 was up we returned it and leased a 2013 model that was actually better equipped and ended up paying $100 per month less. And both cars were leased with zero down.

 

[dgpcolorado]

Not passing all of the tax credit on? Those savings/rebates are from NMAC/NISSAN CORPORATE. The dealer CANNOT keep any of the rebates for themselves. It's just not possible. Lets not forget that the rebate Nissan gives when leasing is GREATER than the $7,500 federal tax incentive. Current models receive as much as $8,675 in rebates when leasing.

I think you misunderstood what was being discussed. Although Nissan/NMAC has been good at passing on the entire $7500 tax credit to the customer (as part of the down payment) other car brands, such as Toyota and BMW, have been reported to not do that. They have been using only part of the tax credit as part of the down payment and keeping the rest. You can say that the dealers don't get that money, I wouldn't know, but that doesn't make it any better for the customer.

It is a sore point with EV leasers. And something that gains Nissan respect, for doing it right.

 

[TimLee]

Not passing all of the tax credit on? Those savings/rebates are from NMAC/NISSAN CORPORATE. The dealer CANNOT keep any of the rebates for themselves. It's just not possible. Lets not forget that the rebate Nissan gives when leasing is GREATER than the $7,500 federal tax incentive. Current models receive as much as $8,675 in rebates when leasing.

I agree that Nissan has been better.
But some OEMs and/or their dealers have chosen to cheat the consumer and at least the intent of the Federal law.
MOST Nissan deaslers have been far more reputable.