Has anyone successfully paid their Lease in full? Post!

[Coffee_Slurry]

If you have leased a Nissan LEAF through Nissan, and successfully made a full payment for a three-year lease, please post. I am very interested in the details of the process, pro/cons, and the payment computation. For that matter, any Nissan-leased car would probably apply.

This would be either a purchase-time "all down payment" lease, or a subsequent full payoff of the lease amount.

I'm looking to pre-pay the lease and avoid finance charges while NOT taking the purchase option (full buyout of residual).

Thanks!

 

[oakwcj]

I read one post by someone who did this through North Bay Nissan. [Look for the thread "My Experience with North Bay Nissan" in this forum.] When I ordered my LEAF last week, I asked Ron Coury at NBN about it, and he said that they did it once and would never do it again, because it was too time-consuming for the dealership. It does seem like an attractive option if you can get someone to offer it.

 

[MikeD]

I recently did so using a "one payment lease" using a NMAC SignatureONE lease form, thinking that by using the largest possible down payment and its special low sub-"tier 0" .00188 money factor (because there is no risk that I could default on future payments) I would reduce the finance charges to a minimum. Only problem is I was only told at signing that that lease's rules forbid ANY Capitalized Cost Reduction other than a trade-in, i.e. no $7500 Federal tax refund, no $2500 TN state rebate, and most definitely no user cash! I STRONGLY suggest no one consider using this "one payment lease" (even if you otherwise have to pay the highest tier interest rate -- I doubt it is a better deal).

If you feel you want to pay the lowest finance charge possible, use the normal NMAC SignatureLEASE lease form where the only Capitalized Cost Reduction restriction I am aware of is the following: "Capitalized cost reductions on the SignatureLEASE Lease Plan cannot reduce the adjusted capitalized cost to an amount less than the residual value plus $100.00.". If you make the maximum Capitalized Cost Reduction you will be left with a monthly payment which is paying off over the lease term the total of 1) only $100 of depreciation, 2) the finance charges for the residual + ($100/2) = ((Residual Value + $100) + Residual Value) * (money factor) * (Number of Lease Payments), and 3) the state tax on 1) and 2).

Realize that you may very well be better off financially if you are alternatively able to invest this sizable cash down payment money in an account that pays an interest rate (deducting income taxes) close to or better than the lease interest rate, and make automatic monthly payments to NMAC...

Consider also the (probably small) risk of a high cash down payment should the car be either stolen or totaled early in the lease term -- no refund of that down payment and no car either...

 

[Navin]

I'm curious about this too. I've seen one or two posts of people who have done a 36 month lease then paid the car off in full right away (and gotten the $7,500 off), but I haven't seen a definitive answer if this is something anyone can do or is it up to each individual dealer?

 

[Desertstraw]

This subject has come up before. IRS told me that you cannot buy out your lease in less than 36 months or the seller loses his $7,500 federal money. On the other hand, as far as I can tell, as long as the lessor keeps ownership of the car for 36 months, I see no restrictions on any other financial arrangements that you make with him. I personally hope to do a one payment lease next month.

 

[LEAFer]

This logic would "violate" the "rule" we spoke of elsewhere whereby an private individual can have the intent to NOT resell, but change his mind after realizing the vehicle is not for him, and still keep the credit. Wouldn't the same apply to Nissan ? (They intended to be the lessor for 36 months, but due to circumstances beyond their control the lessee purchased the car.)

 

[DaveinOlyWA]

what the OP is suggesting would not really be possible.

because even if you prepaid the lease in the assumption that you would have no payments until the lease term is up, Nissan is still liable for the vehicle since they are the owner so you would essentially be holding the car without risk. that aint gonna happen.

your better option would be to lease. hold the car for 3-4 months then convert to a purchase

 

[Herm]

because even if you prepaid the lease in the assumption that you would have no payments until the lease term is up, Nissan is still liable for the vehicle since they are the owner so you would essentially be holding the car without risk. that aint gonna happen.

That does not make sense, you did pay for the lease, or at least most of it.. with the intent to reduce interest payments I assume. Is that the intention of the OP, to reduce interest payments?

 

[DaveinOlyWA]

because even if you prepaid the lease in the assumption that you would have no payments until the lease term is up, Nissan is still liable for the vehicle since they are the owner so you would essentially be holding the car without risk. that aint gonna happen.

That does not make sense, you did pay for the lease, or at least most of it.. with the intent to reduce interest payments I assume. Is that the intention of the OP, to reduce interest payments?

yes that was his intent, but a lease does not have "interest" so a prepayment would not reduce much of anything. now it will reduce it some, but not all.

what we have here is a completely different process than buying. by not buying, Nissan is still kept "holding the bag" so to speak.

there is none of the incentives normal buyers have for taking care of the car. granted, dents, damage, etc can be quantified and will be charged at the end of the lease, but other things that cannot be seen will not.

look at the difference between renting a car and buying. we all know that most shy away from rental cars for purchases so i wont go into that.