As an Early Leaf Leasee I Feel Under Appreciated by Nissan

[tab13443]

We leased our Leaf in Nov. 2011 and our payment is approximately $550/month. Since November of 2012 you can get the same vehicle (actually a newer one) for around $250/month. When I went to the dealership we leased our Leaf from this past week and asked them to lower my lease payment to the current rate I was told that we are on the hook for the $550/month 36month lease we signed. This is true, however things have changed since 11/2011. The first is the supply of Leafs' was high and demand at the price point was low, so Nissan lowered the price- significantly for Leaf leases.
The dealer told me to call the EV toll free number (877) 664-2738 and ask them what Nissan is willing to do. They essentially said the same thing the dealer did- very disappointing!!! I feel that Nissan is treating their new customers better ($250/month) than their old customers ($550/month). When I went back to the dealership this week the 1st thing the salesman said was, I am going to work hard to make your next car another Nissan- well this is not the way to have that happen.

Not sure where to turn to try to get some satisfaction- any advice??

 

[mwalsh]

Not going to get a lot of sympathy from me. Others either I'm going guess. As early adopters, we should know what we're buying into. One major expectation is that we're getting new to market product that is going to be expensive to begin with and get cheaper as supply increases and margins improve. Those are the breaks.

 

[EvansvilleLeaf]

Yes we can all play what if but most of us knew, or at least should have known, what would happen. Even desirable new models drop in price after release (I remember 2005 Mustangs going for many thousands above MSRP for one) let alone entirely new technology as far as mass market release goes. We all remember $1000 DVD players and the like. I went into my lease - later than yours - knowing people would pay less soon. I could have been one of them simply by waiting. We all could have. We decide when it's time to jump on the early adoption bandwagon.

 

[cdub]

It's the legal contract you signed. They shouldn't lower your lease price. This is the risk you take as an earlier adopter.

You could buy out the lease or trade the car in for a 2013... but that probably won't save you any money. Look at it this way - by the end of your 36 month lease you'll be able to lease a Leaf a lot cheaper.

My Leaf is bought and 100% paid for. No car payments. Now... if I had waited until now I could have gotten a RAV4 for the same price I paid for my Leaf. But that's not something really to complain about, right? I made my choice.

 

[Nubo]

Would it be worth the penalty to terminate the lease early, and renegotiate on a new LEAF?

 

[GlennD]

We are basically stuck! The current trade in value is about my residual. They are not going to reopen the contract that you signed.

Those that purchased are in a really bad spot. At least when my lease runs out it will be Nissan that takes the loss.

 

[dlich18]

When you make a car buying decision, especially as an early adopter, you make it based on the facts that exist at that time. This is even more true with technology. Just look at what has happened with computer technology over the last 20 years. One knows that what you buy today will be less expensive and more powerful tomorrow, but you jump in based on your need and return on investment at the time. And, who ever expects to be "appreciated" by an automobile manufacturer??? Something wrong with this picture.

 

[kentuckyleaf]

When you make a car buying decision, especially as an early adopter, you make it based on the facts that exist at that time. This is even more true with technology. Just look at what has happened with computer technology over the last 20 years. One knows that what you buy today will be less expensive and more powerful tomorrow, but you jump in based on your need and return on investment at the time. And, who ever expects to be "appreciated" by an automobile manufacturer??? Something wrong with this picture.

Great post! will anyone give me $500 for my barebones Commodore 64?

 

[mwalsh]

Great post! will anyone give me $500 for my barebones Commodore 64?

I'll accept a similar amount for my 1985 cell phone (cost $1600 new on contract. So $500 is a real bargain!)

 

[mwalsh]

Even desirable new models drop in price after release (I remember 2005 Mustangs going for many thousands above MSRP for one) l

There is one personal line in the sand that I draw - I'll NEVER pay over retail to get something new that I want. No offense to anyone who will, but to me that is a real suckers game!

 

[LTLFTcomposite]

IMO the $1000 owner loyalty thing was a peace offering, but small consolation for overpaying so much to be an early adopter. As with all new car purchases, the novelty wears off long before the payments end. This one is more annoying because the new models are cheaper, which is rarely the case with other cars.

 

[smkettner]

So did you ask about trading for a 2013 what your new payment would be?
No, Nissan will not be handing you a check any more than those that purchased before the price drop.

Just be happy you leased three years vs committing to the entire amount with a purchase.

 

[Volusiano]

Also don't forget the savings that you realized for gas and maintenance cost during the year and a half that you've had the car so far.

 

[thankyouOB]

So did you ask about trading for a 2013 what your new payment would be?
No, Nissan will not be handing you a check any more than those that purchased before the price drop.

Just be happy you leased three years vs committing to the entire amount with a purchase.

still glad I bought in spring 2011.
paid 20.5k not including taxes, but with the various credits and rebates.
saving $180-$200 a month on gasoline, not to mention ICE maintenance.
Did buy new tires to replace the Ecopias.

 

[ebill3]

There is one personal line in the sand that I draw - I'll NEVER pay over retail to get something new that I want. No offense to anyone who will, but to me that is a real suckers game!

Way back when they first arrived, I rented a Prius, and dearly wanted one. BUT, the money grubbing dealers would not sell at MSRP. I checked dealers down the coast and east to Montana. No Prius for me.

Wonder what I could get if I still had my 1971 four function hand held Bowmar electronic calculator that cost ~$200.

 

[ERG4ALL]

Our lease payment is higher than they are offering now, but as someone else said, look at the gas savings over the life of the lease. I got in early to support the technology. I told my friends that were/are waiting for the price to come down and the range to increase, that if no one supports the first generation, there will not be a second generation.

I do wonder what Nissan is going to do with all of these three + year old LEAFs that are turned in when the lease is up. Because Nissan will not renegotiate the contractual buyout price (so my dealer tells me), the value of the car from an obsolescence standpoint has to have degraded the market value of the car. Thus, it makes more sense to spend a few bucks with probably a lower lease payment and get a new LEAF when the lease is up.

 

[interplaydave]

Check in with another dealer for sure. I leased my first Leaf in June, 2011 -- $2000 down, for a payment of $490 per month, 39 mo lease + got the California $5,000 rebate). Last October, the dealer (Hilltop Nissan) called me to propose a new deal as follows: Turn in the existing car (it had about 9000 miles), make no additional payment (e.g. no cash changed hands), get a new 2012 Leaf, same color with the add-on features like heated seats, etc, and pay $100 less a month. Net Net, new monthly payment of $389 and a new 39 month lease. I had to pay back California $2900 on the rebate since I didn't keep the car for 36 months, but then got a new rebate for $2500 on the new car for out of pocket payment of $400.

 

[mwalsh]

Check in with another dealer for sure. I leased my first Leaf in June, 2011 -- $2000 down, for a payment of $490 per month, 39 mo lease + got the California $5,000 rebate). Last October, the dealer (Hilltop Nissan) called me to propose a new deal as follows: Turn in the existing car (it had about 9000 miles), make no additional payment (e.g. no cash changed hands), get a new 2012 Leaf, same color with the add-on features like heated seats, etc, and pay $100 less a month. Net Net, new monthly payment of $389 and a new 39 month lease. I had to pay back California $2900 on the rebate since I didn't keep the car for 36 months, but then got a new rebate for $2500 on the new car for out of pocket payment of $400.

I like it! Way to work the system, Dave.

 

[Valdemar]

Those that purchased are in a really bad spot. At least when my lease runs out it will be Nissan that takes the loss.

They are in a bad spot if their plan was to replace the car after 3 years. It is a widely known fact that leasing is typically (but not always) is a better choice for those who change cars often, and as we now learned it is even more so for the first generation of EVs. So if they bought thinking that trading-in their car in 3 years would save them money and now regret it was their mistake.

The long-term effects of Leaf ownership cost benefits, or otherwise, remain to be seen. There is no evidence that the cost of manufacturing Li-Ion batteries is on a steep declining curve so most likely we are not going to see much cheaper EVs in the near future. The cost of gas is again on the rise. The acceptance rate of plug-in vehicles is slowly growing too, which will hopefully help the development of the public charging infrastructure. I expect that most EV owners who take good care of the battery and don't live in hot climates will see only a moderate capacity loss after 5-6 years with enough range to still make the car look attractive to many of those who will be shopping for a used EV. Because of these factors the depreciation curve will likely flatten out at some point, and between savings on gas and sales tax those who bought, take care of the car, and keep the car long enough may well actually come forward.

It is those who leased with high payments are in a really bad spot if they can't get out of the lease now. They are basically taking a loss and no option to recover it. They typically don't care about the battery, charging to 100%, etc., so buying the car at the end of the lease is likely not on the table in their situation. I'm also not sure Nissan will take the loss, they can probably refurbish the battery for a lot less than the end-user would normally pay. That and the high payments the original lessee payed most likely to allow them to still make a profit on a used-car sale that had its battery "reconditioned".

I bought because with my 18k mile annual commute leasing was not really an option. My only regret is not buying earlier so I could take advantage of the 5k California rebate available at the time.

 

[JimSouCal]

Those that purchased are in a really bad spot. At least when my lease runs out it will be Nissan that takes the loss.

They are in a bad spot if their plan was to replace the car after 3 years. <snip>. Because of these factors the depreciation curve will likely flatten out at some point, and between savings on gas and sales tax those who bought, take care of the car, and keep the car long enough may well actually come forward.<snip>My only regret is not buying earlier so I could take advantage of the 5k California rebate available at the time.

Well, I bought (with a $1000 discount and no charge for OEM all weather rubber mats), and am very happy. So far, trouble free, and I get a great deal of pleasure driving and using the LEAF. And I made it under the wire for the CA rebate.

As to the OP's laments, I do think it is appropriate to feel some dismay, ask for some Nissan consolation, and for the best, let it go focusing on the benefits others mention for the sake of happiness...