End of Lease Strategies?

[cwerdna]

I just got an offer in the mail today for my 2013 (Lease end late July 2015). They are offering $5000 off the lease payoff amount. Offer March 1. 2015 - March 31, 2015. Incentive offers beyond March 31 subject to change.

Woah. You received it March 24th and the offer only has 7 days of validity left?

My lease end on my '13 is also late July 2015 but I haven't seen any such snail mail yet... Hmm. I wonder if I'll receive something similar.

 

[Kenric]

I posted this on a different thread but was directed that this is the correct place to ask. If anyone has extended their lease and has a document stating it is month to month, can you post the wording.

Note that the lease extension I have states that "Your lease contains information on early termination, ..." so I believe the extension doesn't modify those terms. So you can terminate early but it would cost most of us paying the entire year extension. I believe you can get out of that if they sell your car for more than the residual value.

 

[kubel]

If anyone has extended their lease and has a document stating it is month to month, can you post the wording.

The month-to-month offer does not exist, only a year extension with 2 months free.

 

[JeremyW]

While my lease payment is absurdly high, my milage and commute is such that I could probably do two months w/o going over milage. If I get those two free months up front, I might just take them up on it.

Have to be 100% sure that it is month to month and I can cancel at any time!

 

[LeftieBiker]

If anyone has extended their lease and has a document stating it is month to month, can you post the wording.

The month-to-month offer does not exist, only a year extension with 2 months free.

The offer exists, as I was also told that over the phone. I'll let you know if it appears in the writing as well.

 

[Bateman]

I just got off the phone with NMAC - they offered me the 12 month extension with two free months. It was explained that once you sign the paperwork, they send you two month-payment vouchers. You can use them anytime over the next year - it doesn't have to be at the beginning or end or the term.

 

[carolle]

Mine, 2013 LEAF, SV+QC+LED, 2-yr, 12K/yr, is expiring soon at the end of this April. I also got a 1-year extension offer including 2-month credits by a call. I'm currently paying $170 (including tax) after $2000 down payment. My mileage is extremely low, 7000 miles/year.

Do you think that this extension is a good deal?

My math says this seems good. I'm getting another year for $1700, which means that ($2000 + $170*23 + $1700) = $7610 for three years, excluding $395 disposition fee. Around $2500 per year.

(One small math would be paying additional registration fee. In CA, LEAF has $208; not refundable AFAIK. Even if you terminated lease in the middle of the year, you don't get any prorated refund. So, extending a full-year would be cheaper unless you find a very hot deal for next EV.)

By the way, I don't understand $5000 residual discount or something. I haven't received an official letter from NMAC yet.

 

[Boomer23]

Mine, 2013 LEAF, SV+QC+LED, 2-yr, 12K/yr, is expiring soon at the end of this April. I also got a 1-year extension offer including 2-month credits by a call. I'm currently paying $170 (including tax) after $2000 down payment. My mileage is extremely low, 7000 miles/year.

Do you think that this extension is a good deal?

My math says this seems good. I'm getting another year for $1700, which means that ($2000 + $170*23 + $1700) = $7610 for three years, excluding $395 disposition fee. Around $2500 per year.

(One small math would be paying additional registration fee. In CA, LEAF has $208; not refundable AFAIK. Even if you terminated lease in the middle of the year, you don't get any prorated refund. So, extending a full-year would be cheaper unless you find a very hot deal for next EV.)

By the way, I don't understand $5000 residual discount or something. I haven't received an official letter from NMAC yet.

$5,000 residual discount means that Nissan will sell you your car at the end of the lease for $5,000 less than your lease residual amount that you would need to pay if you buy the car at the end of the lease.

 

[Bateman]

By the way, I don't understand $5000 residual discount or something. I haven't received an official letter from NMAC yet.

The reason you (like myself) have such a low lease payment is because NMAC over estimated the end-of-lease residuals of these cars. They were off by about $5,000-$6,500. (Your paperwork says you can buy the car for say $21,000, but you could go by the same car right now for $15,000 from a dealer.)

Because NMAC doesn't want to take all of these cars back, they would rather we keep them and adjust the residual to an amount that is closer to fair market value to entice you to buy it instead of further depreciating all the other LEAF's coming off lease.

 

[cwerdna]

I just got an offer in the mail today for my 2013 (Lease end late July 2015). They are offering $5000 off the lease payoff amount. Offer March 1. 2015 - March 31, 2015. Incentive offers beyond March 31 subject to change.

Woah. You received it March 24th and the offer only has 7 days of validity left?

My lease end on my '13 is also late July 2015 but I haven't seen any such snail mail yet... Hmm. I wonder if I'll receive something similar.

Long story short, after speaking to one person at NMAC and being told to call their lease maturity dept at 888-813-1727, I found out I do have 2 offers on my '13 Leaf SV now:
- the 12 month lease extension w/the same payment amounts I'm making now w/2 months payment wavier OR
- $5000 discount on the lease buyout, valid from April 1st to 31st (I've gotten no snail mail about this yet)

Hmmm... I've just emailed the CVRP folks.

 

[LeftieBiker]

I got the lease paperwork in the mail, and there was an Unpleasant Surprise in it. Since I only payed NY sales tax for a two year portion of the car's value, I have to pay about $10 sales tax each month for the extension. So my payment goes up to ~$159, from ~$149. Also, instead of the reported two 'coupons' for payment credits, I was informed I don't have to send another payment until June. I wish I'd known that when I sent in April's payment... So, to those in states that charge tax on leases, be warned that unless you already have the tax rolled into your lease payment, you will pay more with an extension.

 

[carolle]

Quick question: should I do vehicle inspection in order to extend lease?

 

[ALF]

Quick question: should I do vehicle inspection in order to extend lease?

I don't see why you would do a vehicle inspection. The purpose of the inspection is to determine how much you might have to pay for car damage when you turn your car in. If you are going to extend the lease, just get the inspection at the end of the new end-of-lease date.

 

[dm33]

We received our lease extension paperwork today. I see no mention of month to month. Has anyone confirmed if it's month to month or is it a year commitment?

 

[LeftieBiker]

We received our lease extension paperwork today. I see no mention of month to month. Has anyone confirmed if it's month to month or is it a year commitment?

My form (a very, very simple one) includes mandated language that explains the right of the lessee to terminate the extension whenever desired. However, there is a mention of possible extra cost if you do this. I was told on the phone that it's month to month, and with Nissan wanting to sell or lease us another vehicle, this would seem to make sense...

 

[cwerdna]

Woah. You received it March 24th and the offer only has 7 days of validity left?

My lease end on my '13 is also late July 2015 but I haven't seen any such snail mail yet... Hmm. I wonder if I'll receive something similar.

Long story short, after speaking to one person at NMAC and being told to call their lease maturity dept at 888-813-1727, I found out I do have 2 offers on my '13 Leaf SV now:
- the 12 month lease extension w/the same payment amounts I'm making now w/2 months payment wavier OR
- $5000 discount on the lease buyout, valid from April 1st to 31st (I've gotten no snail mail about this yet)

Hmmm... I've just emailed the CVRP folks.

Ok, I heard back from the CVRP folks.

This is part of their response (hope they don't mind me posting it):

After extending your lease for the required 30+ months, you may now apply for the rebate. You will be asked to provide a copy of your lease agreement as one of the supporting documents. Please include a copy of both the original lease and the lease extension/purchase agreement for the buy out.

The 18-month requirement only applies to vehicles purchased or leased after May 5, 2014.

Woohoo!!!!

I'm really leaning at just extending for 12 months (w/the 2 month waiver) and applying for CVRP, since that's so cheap. I do risk needing to buy new tires at the end of 3 years before lease return, if they're too worn.

Perhaps after year 3, NMAC might again offer a lease buyout discount? (Of course, I can't get another CVRP on the same car, but still.)

 

[DaveEV]

Wow, that will basically give you the third year of leasing for free!

 

[cwerdna]

Wow, that will basically give you the third year of leasing for free!

Not quite, as my payments are about $314/mo since I put $0 down and have a fully loaded SV (have both packages). But, it's a pretty darn good deal. $3140 - $2500 = $640 for 12 more months.

At least it'll give me time to decide what to get next July. It might end up being the next gen Volt , so I can ditch my old Prius.

 

[carolle]

Wow, that will basically give you the third year of leasing for free!

Not quite, as my payments are about $314/mo since I put $0 down and have a fully loaded SV (have both packages). But, it's a pretty darn good deal. $3140 - $2500 = $640 for 12 more months.

At least it'll give me time to decide what to get next July. It might end up being the next gen Volt , so I can ditch my old Prius.

WOW, is this real? It's too good to believe.

My term is 2-year lease with $170/month (with $2000 down). I will extend a year with 2-month credits, then I just have to hay 170*10=$1700. If I am really eligible for CVRP (as my total lease would be 36 months), I'm earning $800 (=$1700-$2500).

I'm not sure whether CA government will really reimburse CVRP for my case. 2-year lease was cheap at 2013 because Nissan already applied tax credits. It seems that we are getting double tax credits from California government.

 

[cwerdna]

^^^
I think it makes sense. You'd still would've paid your down payment + your first 2 year's payments + your extra 10 months.

Some people got very low monthly payments because they put a huge amount down (not a good idea). I recall seeing ads every now and then for $99/mo before tax, title and license Leaf S leases, due to a huge down payment.

Have you confirmed w/NMAC that you're getting a waiver for 2 months of payments, as well? I'm not sure if this is dependent on some formula/criteria on their side.

I'm not sure whether CA government will really reimburse CVRP for my case. 2-year lease was cheap at 2013 because Nissan already applied tax credits. It seems that we are getting double tax credits from California government.

Huh? 2-year lease was ineligible for CVRP. It needed to be 36+ months (later changed to 30).

As for tax credit, that's the Federal tax credit and has nothing to do w/(California) CVRP. Nissan/NMAC received that $7500 Federal tax credit and passed it on customers, in the form of a cheaper lease (IIRC, looks like a big down payment, much bigger that you actually put down).