TimLee said:
The cost of the lease is based on end of lease value versus their cost, which is price minus the government subsidies.
Based on wholesale prices they have been losing lots of $.
Will lose less $ on the later models because they lowered the residual estimates (ttherefore raised the lease cost).
Surely you don't think the government subsidy a purchaser gets is real profit for Nisssn?
The LEAF will lose $ on everyone they sell or lease for another five years or more.
Help me understand where the $7k loss is coming from then.
The dealership I talked to only subtracted the lease payments from the payout value (2 or 3 years later depending on which you choose) and thus a new 2015 Leaf with a $350 / Mo lease payment for 3 years ($12,600 paid in after 3 years), the residual value for purchase was still going to be $15,000 for just the S base model. So Nissan takes the $7,500 tax credit (which they can actually use, I sure can't), plus the $12,600 I would have given them for the 3 year lease, so they have made $20k from my lease and then sell the vehicle for $15k, so it the dealership just made $35k if I bought the vehicle after 3 years for a $30k retail vehicle.
Maybe my confusion is that Nissan takes the tax credit and the dealership is making the extra money at the end of the lease, but the Dealership still had to purchase the vehicle from Nissan (probably at wholesale of course) and where is the money being lost except from the buyer/leaser?