First off, thank you for taking your time to write a clear and helpful analysis of your experience in purchasing a Nissan Leaf. There are a few things I'd like to add from a dealership employee's insider perspective. By the way, I am Dan, Regal Nissan's Leaf Sales Leader. I also want to state that the information in this post is not endorsed by Nissan or Regal Nissan. This is simply put, my analysis and insight into the Leaf sales experience.
The Nissan Leaf is an amazing vehicle. I believe it has the potential to be on the most significant advances in changes the world’s dependency on oil. I've been in the auto industry in a sales capacity for 7 years. There is not another alternative fueled that's hit market that I feel I could say that about. I am excited and honored to be a part of automotive history.
As a consumer, I value fair pricing and customer service. In an industry that is based on a platform or generating business by constantly motivating consumers to make a purchase through sales, incentives, discounts, perks, etc, I can see how it may seem off-putting to purchase an item in this industry with out being offered an incentive. I can even understand how it might be perceived as "price gouging" to be asked to pay the MSRP (Manufacturer's Suggested Retail Price) plus a normal documentation fee. That being said, here are a few things you may not know.
We can all agree the Nissan Leaf is quite a unique vehicle. However, when it comes to the numbers behind it, it's just as unique.
The Leaf MSRP compares to Nissan products such as the SV Armada, the fully loaded Maxima SV, the Murano LE, the fully loaded Pathfinder LE, the Titan SL Crew Cab, the Nissan Z Touring and the Quest LE. However, (and you can verify this data on edmunds.com or similar sites) the mark-up from invoice to MSRP for the Leaf is approximately
half of that of Nissan's with similar MSRPs. The markup in the Nissan Leaf is more closely comparable to that in a Nissan Juke SL, a value vehicle that carries an MSRP below $25,000.
In order to sell/service the Nissan Leaf, Nissan dealerships had to commitment to a significant cost, long before beginning to see a return on investment, to retrofit service facilities, train staff, install charging stations (we have four) purchase safety equipment etc. Preparing for the Leaf required a larger investment than did the Nissan GTR supercar which has an MSRP close to $90,000 and markup nearly four times that of the Leaf.
The Nissan Leaf sales and service staff time investment was also quite significant. Hours upon hours of online training modules and in-person training seminars as well as research and preparations we all made on our own time starting over 18 months before we saw any return on investment. Designated service and sales personnel spent 18 month of answering questions for consumers that were anywhere from ready to order to just curious about the Leaf. In an industry that doesn't pay a salary or an hourly wage, the total time investment involved for each Leaf sale/prospect is incomparable to that of an average vehicle sold. However, that's never jaded my desire to be a participant in something that may be the beginning of the most revolutionary advance in the auto industry in my lifetime.
Another interesting perspective with the Leaf is that there is not a single vehicle currently produced by Nissan that offers an incentive of up to $12,500 (including GA tax incentive). Granted this is a government incentive, not a dealer or manufacturer's incentive, but in the end does it really mater to you where the savings come from, as long as they are there? It's quite unique that a product, so innovative, it attracted buyers who patiently waited nearly two years just to order one as Nissan tirelessly worked to meet demand and overcome delay issues caused by mother nature, would come packaged with an available discount larger than any other product we offer? A vehicle which required a reservation just to be one of the first to order in your area?
Furthermore, what other vehicles offer you a discount on your home electricity bill just for owning it? (now available with most power companies) Government incentives are also available for home and business charging adapters should you choose to install one. Not to mention the savings the Leaf offers in both fuel expense and maintenance, HOV perks, etc. Woodstock became the first municipality in GA to install a free-to-use level 2 EV charger with 24/7 availability. A few articles were written up in the paper, not much buzz overall. Now imagine the City of Woodstock also installed a gas pump, again free to use 24/7 with unlimited resources. The news would probably go viral, nationwide, and would likely create a mob envionment. News would spread of fights over who's next in line at the pump. It would be like black Friday at WalMart everyday.
Understand, I fully realize the Leaf has limitations. It's not the end-all worldwide solution to the automotive industry. It's not even a viable vehicle for every consumer's needs. And there are sacrifices you choose to make when placing your order. I personally made the decision to consider the Leaf seriously for my next vehicle. I made my own reservation (which is still pending) during the early months and will likely own a Leaf in the future when I'm financially ready. I understand both perspectives. And when I do decide to order my Leaf, despite being a Nissan tenured employee, I do not expect a discount. The value is there, hands down, and thus at MSRP the Leaf has proven to be successful and should remain so.
Toyota introduced the Scion as a national product in 2004. It is still sold at MSRP today. I am not a Scion expert, but to my knowledge discounts and incentives are still not offered and are never intended to be offered. There are several other examples of vehicles that are sold at MSRP. A car that sells consistently at MSRP is not a bad thing. Think about it. If a product is offered at a reasonable initial price and provides enough value to the consumer that a discount is not necessary, than how is that not a good thing? Imagine a world where the price of all similar automobiles are the same. Where the only consideration you had while shopping was a focus on finding the retailer that was most committed to your overall satisfaction instead of the retailer that was most interested in capturing as much business as possible by simply under-cutting the competitions' price. All of the sudden, car buying is no longer an oft-dreaded process.
Revolutionizing the auto industry is quite a project. The birth of the Leaf encompassed approx two decades of time experimenting with EV technology to ensure a successful finished product. I would be afraid to estimate the total cost of bringing the first Leaf to production. It's a lot of time and man hours and production costs to think about over 20 years time. Alone, the plant that Nissan is building retrofitting in the US to build batteries and assemble Leaf vehicles required a 1.4 billion dollar investment. So the question is, is the $40,000 price tag reasonable? Sure it's a smallish car. It's not a marvel of luxury or a 300+ HP sports car or even a vehicle that you can drive to Disneyworld in. However, the market has proven that it's wanted. Consumers are buying. They are excited. Motivations vary, but, when has a vehicle been name "World Car of the Year" while also be regarded a poor value?
Finally, (if you made it this far bravo), lets discuss what should be important to you when choosing the dealership to purchase your Leaf.
1) Treat each dealer interaction like an interview. Some dealerships take the Leaf very seriously, others do not. Find a dealership and representative that has several years experience and is knowledgeable and a clear communicator. You may not have questions now, but believe me, you will. To maximize your Leaf ownership satisfaction level, it's key to feel comfortable and to be able to communicate with the dealership/personnel that helped you with your Leaf order.
2) Distance/Convenience: Make sure you purchase, if possible, from a dealership that is with in driving range of the Nissan Leaf. I don't want any customer to have to call roadside assistance on their way home
3) Customer Service: This applies on so many levels. The Leaf may be a car, but it is probably unique from any other car you have purchased. For example, the final "delivery" part of the new car purchase process (introducing the customer to the features, setting up bluetooth, final instructions on use) should take approximately 30 minutes. A Leaf delivery, if done properly, should take 90 minutes - two hours. That being said, before you commit to a dealership for order, think about the quality of information you received in speaking with them and how clearly they were able to answer your questions.
4) Communication: You are making quite an investment when choosing the Leaf. The Leaf sales process is based on an order months in advance. Make sure you're working with a dealership you trust that won't try to take advantage of you when it's finally time to take delivery of your Leaf. Get all prices and important information in writing. The online order tool can be confusing, make you sure you are 100% clear on the vehicle you are being offered and the price and fees involved.
5) Reputation: This is extremely important. I believe finding a dealership with a great reputation is the first step in choosing where to purchase any car. But it's even more important when purchasing a Leaf. There is probably ten times more interaction between consumer and dealership in a Leaf sale/ownership than that of an Altima. Understand that not all dealerships are created equal. Check their Better Business Bureau ratings (http://www.bbb.org" onclick="window.open(this.href);return false
and their online reviews. Avoid ones that have many complaints or ones that do not respond to the complaints.
Thanks for reading, I hope you found this post helpful in your Leaf customer journey.
Dan