End of Lease Experience

I was wondering what the general experience was of those returning their vehicle at the end of the lease. Were there any additional charges incurred due to "excess wear" on the vehicle? If so what? And were they warranted? What does Nissan consider as "excess wear"?

Or was it a simple matter of handing in the keys without much issue?

Also, what if the car is worth more than the residual value at the end of the lease? Is there a cash-out or trade-in option with this "equity" ? I know Toyota often offers these options.

I know this is probably unlikely with the leaf, but with the downward spiral of the residual value I think its worth considering.

Nissan provides a guide for this, which applies to all their cars: Nissan Guide to Chargeable Wear and Use

The only practical experience you are likely to get reports of right now is for cars other than LEAFs, since when Nissan started leasing the first LEAFs in January 2011 I think all of the leases were for three years. Unless I am wrong, it was only in 2012 that they started giving 2-year leases.

There have been a few people who turned in their cars before end of lease. In fact I did that myself. But I did it on an exchange for another LEAF. In that case the end of lease requirements don't really apply. The dealer looks at the condition of your old car and takes that into consideration in deciding how good a deal to give you on your new one. But you never see an itemization of what they found wrong or how much they docked you for it. In my case, at least, it appeared they took only a quick look. They certainly didn't look inside, unless through the windows, because it was locked and I had the key until after we completed the deal.

Ray

One fee you may be charged is the lease return fee, $395 I believe. This may be waived by NMAC or absorbed by the dealer if you buy or lease another Nissan at the same time.

As far as the potential post-lease equity, the time to find that out is well before the day the car is due to be turned in. A shady dealer may try to tell you the car is worth less than residual when it's not, and even an honest one won't give you full value for the car. If you want full value, you will have to buy out the lease and sell it yourself privately. No different than trading in vs. privately selling it yourself.

Thank you Ray -- thats exactly what I was looking for.

As far as the second part of the question -- the only reason I asked is because I saw this video on youtube.

http://www.youtube.com/watch?v=RVNsLlBNufs" onclick="window.open(this.href);return false;

No, they also offered four year leases then just as they do now.

planet4ever said:

The only practical experience you are likely to get reports of right now is for cars other than LEAFs, since when Nissan started leasing the first LEAFs in January 2011 I think all of the leases were for three years.

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Red5 said:

Thank you Ray -- thats exactly what I was looking for.

As far as the second part of the question -- the only reason I asked is because I saw this video on youtube.

http://www.youtube.com/watch?v=RVNsLlBNufs" onclick="window.open(this.href);return false;

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Except under very unusual circumstances, I can't imagine the LEAFs being worth more than their residual value at the end of the lease. So, while the woman in the video remarked that the fourth option of just turning in the keys is rare for her, I think it may be very common for dealerships at the end of LEAF leases.

One thing I'll be very interested in seeing is what happens to those who reach the warranty replacement level for their battery just a couple months before their lease expires. A low-mileage LEAF with a new battery may be worth more than the residual. If I reach battery replacement time with my LEAF in early 2015, I will first offer NMAC the option of terminating my lease, without penalty, and hand the car back to them. If they are not willing to do that, I may just get the new battery, buy the car from them at the end of the lease, then sell it right away as a low-mileage used car with the brand new battery. Obviously, timing is everything on this deal, but even if I reach 8 bars in January 2015, I'll be more than willing to wait until the last minute (May or June 2015) to get the battery replacement so that the car will have, essentially, a new battery at lease end.

Weatherman said:

Except under very unusual circumstances, I can't imagine the LEAFs being worth more than their residual value at the end of the lease. So, while the woman in the video remarked that the fourth option of just turning in the keys is rare for her, I think it may be very common for dealerships at the end of LEAF leases.

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+1
Its a very well done informative video, but it is related to leasing Toyotas that seem to always have a residual quite a bit less than their market value at the end of the lease.
The LEAF, as a new cutting edge product, is at the other end of the spectrum.
Leaving most end of lease persons worried about miles, worried about damage and penalties.
If you have fairly low miles per year needs, one option is to buy it back from the dealer at market value after you turn in the keys. Not all dealers will do this, buy some will.
I did that once on a purchased car where I had guaranteed trade-in value from Lincoln if I bought a new vehicle ($8,500 :!: :!: :!: ) and bought back the 1988 Merkur Scorpio. I still love that car and would probably still be babying it along if some distracted driver idiot hadn't rear ended my wife and totaled it.
If you're in the high miles per year, just go lease another LEAF.
Hopefully NMAC doesn't beat you up too bad on miles or vehicle condition.

So am I misunderstanding the fine print on the Nissan Website when they say "At lease end, purchase of for $11,860, plus purchase option fee up to $300, plus tax, or pay excess wear...."

Does that mean that if you pay $300 up front they will honor the purchase price of the car at the end of the lease to be $11,860.00 ?

Now lets assume in 2 years the rebates go away and the price of a new leaf stays where it currently is -- in that case wouldn't you your car be worth more than the $11,860?

Red5 said:

So am I misunderstanding the fine print on the Nissan Website when they say "At lease end, purchase of for $11,860, plus purchase option fee up to $300, plus tax, or pay excess wear...."

Does that mean that if you pay $300 up front they will honor the purchase price of the car at the end of the lease to be $11,860.00 ?

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Not quite. It is saying that at lease end, you or someone else can buy the car from NMAC for $12160 ($11860 + 300) plus any taxes, reg, and other government fees. Or you can walk away for the lease disposition fee (usually $395) plus any overmileage and excess wear/tear penalties.

Now lets assume in 2 years the rebates go away and the price of a new leaf stays where it currently is -- in that case wouldn't you your car be worth more than the $11,860?

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The Federal tax credit is unlikely to go away in the next 2 years, unless there is a major right-leaning shakeup in Congress come November 2014. They go away when the manufacturer has sold/leased (I think) 200k of the qualifying cars. As of September, only 35k Leafs have been sold/leased in the US.

Weatherman said:

One thing I'll be very interested in seeing is what happens to those who reach the warranty replacement level for their battery just a couple months before their lease expires. A low-mileage LEAF with a new battery may be worth more than the residual. If I reach battery replacement time with my LEAF in early 2015, I will first offer NMAC the option of terminating my lease, without penalty, and hand the car back to them. If they are not willing to do that, I may just get the new battery, buy the car from them at the end of the lease, then sell it right away as a low-mileage used car with the brand new battery.

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That is not at all a safe bet. Nissan doesn't promise you a new battery. They only promise you a battery with at least 9 capacity bars. If you are a long ways from the end of your lease and a long ways from 60k miles you are likely to get a new, or nearly new, battery, because it costs them quite a bit of money each time they exchange them. But if you are close to end of lease I'm guessing you will get a band aide that just tides you over.

Ray

TomT said:

planet4ever said:

The only practical experience you are likely to get reports of right now is for cars other than LEAFs, since when Nissan started leasing the first LEAFs in January 2011 I think all of the leases were for three years.

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No, they also offered four year leases then just as they do now.

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Interesting. I don't remember hearing anything about a 4-year lease when I made my agreement which, come to think of it, was really in September 2010, though I didn't get the car until May 2011. But that is not pertinent to the current discussion unless they were also offering two year leases for 2011 LEAFs.

Ray

It is saying that at lease end, you or someone else can buy the car from NMAC for $12160 ($11860 + 300) plus any taxes, reg, and other government fees.

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Who would the "someone else" be? I've been thinking about selling my lease before it ends for $1k or so, because my SV will probably have lkess than 10k miles on it lease end. Are you saying that I can reassign the purchase option to someone else, without having to transfer the lease (and remain on it as co-lessee)? I'd much rather sell the purchase option at the end than have to give the car up early.

LeftieBiker said:

It is saying that at lease end, you or someone else can buy the car from NMAC for $12160 ($11860 + 300) plus any taxes, reg, and other government fees.

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Who would the "someone else" be? I've been thinking about selling my lease before it ends for $1k or so, because my SV will probably have lkess than 10k miles on it lease end. Are you saying that I can reassign the purchase option to someone else, without having to transfer the lease (and remain on it as co-lessee)? I'd much rather sell the purchase option at the end than have to give the car up early.

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NMAC doesn't care who buys it, as long as they get their residual value and that purchase option fee, or payoff value if the lease hasn't ended yet. It's one less off-lease car they have to get rid of, and hope to get residual value for at auction.

Logistically, NMAC may not transfer title directly to the new buyer, and may make you handle that transfer yourself. Then again, I don't see how this would be any different from someone wanting to buy your car that was originally purchase-financed through NMAC but it's not paid off yet.

EDIT: this is what I found on the NMAC website.

You will have the option to purchase the vehicle based on the price that was agreed to when you initially signed your lease. This price is known as the residual.
If you decide that you'd like to purchase your current vehicle, here's what to expect:
• The purchase will need to be done at a Nissan dealer.
• Your lease may provide that you are responsible for incidental charges such as sales tax, vehicle registration, a purchase option fee, etc.
• Certain state and local laws may require you pay a smog or safety inspection fee, etc.
• You will not be responsible for any excess mileage or excessive wear and use.
For additional information about purchasing your vehicle at lease end, please call the Lease Customer Network at 800.778.4211 (8:00 a.m. to 6:00 p.m., CST).

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So if the title transfer (from NMAC to you) must be done at a Nissan dealer, I don't see why you can't bring the buyer with you and have the car's title put in the buyer's name at the same time.

I'm hoping that in my case I will have a car worth more than residual because of low mileage, and will be able to arrange a sale at end of lease, maybe getting some of my down payment back. Here's hoping! Thanks.

I wish I could get out of my lease right now, but I can't. I still have 8 months left. I had a 39 month lease. I'd put it up on leasetrader but I doubt anyone would want mine since the payment is somewhat high compared to deals being made lately. My car payment is $411.

adric22 said:

I wish I could get out of my lease right now, but I can't. I still have 8 months left. I had a 39 month lease. I'd put it up on leasetrader but I doubt anyone would want mine since the payment is somewhat high compared to deals being made lately. My car payment is $411.

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You'd also have to worry, because Nissan won't let you take your name off the lease - you remain ultimately responsible for the car & lease if the new lessee doesn't pay.

My lease will end in two and a half months, and I am thinking about keeping the all wheater rubber mats to use them in the older 2011. If I remeber correctly the cost of the mats was diveded by 24 and added to the monthly lease payment. I still have the brand new mats that the car came with. So, can I keep the all weather rubber mats?

camasleaf said:

My lease will end in two and a half months, and I am thinking about keeping the all wheater rubber mats to use them in the older 2011. If I remeber correctly the cost of the mats was diveded by 24 and added to the monthly lease payment. I still have the brand new mats that the car came with. So, can I keep the all weather rubber mats?

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if you can supply mats they will probably not know anything is amiss