Anyone gotten a "one payment lease"?

[MikeD]

This should allow using a sub-tier 0 money factor (like .00180) since there is no risk to NMAC that you will not make all the payments on, say, a 36 month lease. NMAC has a special lease agreement form for this (SignatureONE -- Motor Vehicle Lease Agreement - Single Payment), but my PD apparently is having trouble getting all the info he needs from the regional NMAC.

Anybody?

 

[redLEAF]

I've seen these one-payment leases advertised for GM and MBZ cars but they weren't mfg sponsored ones, they were dealer financed -- here in IL we pay tax on the entire selling price for leases but the single payment does save you some money -- as always you need to look at the fine print (quote from article in link below):

'Actually, the way that some lease companies calculate your single payment (simply as the sum of all monthly payments, including interest), you save nothing on finance charges, since interest is included in each monthly payment. This is obviously to the lease company's advantage and would be unnoticed by most leasing consumers.

So, if you are considering a prepaid car lease, ask your lease company or dealer how they compute it and if you save finance charges on depreciation charges. Be aware that most dealer sales people don't completely understand leasing and might simply give you the answer he thinks you want to hear. Ask the dealer's Finance Manager instead. Ask the manager to compute your lease with monthly payments and without (pre-paid). If your pre-payment amount is the same as the sum of monthly payments, you are not saving any money with this dealer.'

http://www.leaseguide.com/sn/prepaid-lease.htm

This other site highlights what Porsche is doing due to high residual rates -- the LEAF may not fair as well in a lease (other than the Nissan sponsored one) so would be curious how much you can actually save -- although savings deposit rates are really low, borrowing/finance rates are always higher so your 'opportunity' costs difference of pre-paying versus a regular lease may not require as much to come out ahead.

http://www.autoloandaily.com/porsche-two-year-auto-leases-popular-2801

 

[edatoakrun]

This should allow using a sub-tier 0 money factor (like .00180) since there is no risk to NMAC that you will not make all the payments on, say, a 36 month lease. NMAC has a special lease agreement form for this (SignatureONE -- Motor Vehicle Lease Agreement - Single Payment), but my PD apparently is having trouble getting all the info he needs from the regional NMAC.

Anybody?

You have the terms and money factor correct, as quoted to me by my PD.

I have been planning on this very lease for months, and kept the $ waiting in a (low-interest) account since January-my first delivery estimate.

My car is now prepped and available for pickup.

But (long story short) I haven't been able to make an appointment to pick it up, because the signatureONE lease paperwork, is not completed...

 

[MikeD]

I bought my Leaf yesterday using a "one payment lease" (SignatureONE), but I think one may get a less expensive lease by using a "two payment lease" or even a normal lease. In any case I suggest always going over the possible lease options you may be interested in pursuing using the lease agreement form(s) before delivery day, if possible, and if not delay taking delivery (unlike me) until you have.

Unlike normal Nissan (SignatureLEASE) leases the SignatureONE rules don't allow you to pay cash towards the Capitalized Cost Reduction to reduce the Adjusted Capitalized Cost (used along with the Residual Value to calculate the Rent Charge part of the one payment). In my case I was told I could not even use the Federal $7500 tax refund or TN state $2500 tax rebate for that purpose either (at which point I should have asked for a NMAC ruling on this, but relented due to time constraints). Although the SignatureONE lease uses a low .00180 money factor, not being able to reduce the Adjusted Capitalized Cost any (the Finance Manager did said a Trade-in Allowance could be used to reduce it, however) is a more important factor.

edatoakrun: I would suggest (although I did not pursue it) getting a quote for a normal Nissan SignatureLEASE lease whereby via cash you reduce the Adjusted Capitalized Cost as much as allowed (which my understanding is Residual Value + $100), even though the money factor will be larger (at least .00204) than used for SignatureONE. This reduces the Rent Charge part of your lease payment to a minimum, I think. After making the first payment at signing, I think you can make a large second (and final) payment equal to the sum of the remaining payments, but if you pay the lease off monthly inflation should work in your favor.

 

[scharlj]

I am planning to do a one payment lease with Campbell-Nelson Nissan in Shoreline, WA. The residual is the same, you just pay all up front, and you get the smallest money factor possible. It comes down to $16282 (for an SL-e, with no sales tax), which corresponds to a MF of 0.0018. My PD told me that it's something like $200 or less cheaper than a regular 36 month lease with a MF of 0.00204. I didn't do the math to check, but I trust him.

 

[edatoakrun]

edatoakrun: I would suggest (although I did not pursue it) getting a quote for a normal Nissan SignatureLEASE lease whereby via cash you reduce the Adjusted Capitalized Cost as much as allowed (which my understanding is Residual Value + $100), even though the money factor will be larger (at least .00204) than used for SignatureONE. This reduces the Rent Charge part of your lease payment to a minimum, I think. After making the first payment at signing, I think you can make a large second (and final) payment equal to the sum of the remaining payments, but if you pay the lease off monthly inflation should work in your favor.

Thanks for the comment, MikeD

I'm waiting on more info as I type, but I got my one-pay lease, much higher "rent charge" than anticipated, and the leasing rep gave me the same (very odd, IMO) explenation as you did, causing the one-pay to be more expensive. So it appears it will be be less costly to put down a large down on a "conventional" lease.

I do not know if you can reduce the "rent charge" (interest charge) by paying off part or all of the remaining payments early, or not. I will ask and update later. with more details.

 

[MikeD]

edatoakrun: Were you told that the $7500 Federal tax refund (+ state rebate, if any) could not be used as part of the Capitalized Cost Reduction?

I am very interested in what you learn -- take your time! It can make a difference in the neighborhood of $700, if my calculations are correct. I will be glad to help you check your own calculations, if you like. The reason I am still interested even though it is too late for me is that I expect to talk to future Leaf buyers, and I would like to be able to give them authoritative lease info that may save them a sizable amount.

 

[edatoakrun]

edatoakrun: Were you told that the $7500 Federal tax refund (+ state rebate, if any) could not be used as part of the Capitalized Cost Reduction?

I am very interested in what you learn -- take your time! It can make a difference in the neighborhood of $700, if my calculations are correct. I will be glad to help you check your own calculations, if you like. The reason I am still interested even though it is too late for me is that I expect to talk to future Leaf buyers, and I would like to be able to give them authoritative lease info that may save them a sizable amount.

My (proposed) signatureONE lease, on line 5 b shows "N/A" as the capital cost reduction, and the Total (RAQ) sales price on line 5 c.

Does the lease you completed also do so?

If so, bizarrely, NO capital cost reduction, either the $7,500 rebate or payment on lease signing, is accounted for, resulting in interest ("rent") charges on payments Nissan has already received! The only explanation I received for this "creative" accounting is that "this is the way Nissan does it".

Any others with signatureONE lease with the same or different experiences?

I am still waiting for my copy of the "signature" (regular) lease reflecting the maximum down payment allowed.

I have been told the capitalized cost on this lease WILL reflect both the $7500 rebate and the larger down payment, as does the $10,000 down lease posted by link on p 19 of this lease thread:

http://www.mynissanleaf.com/viewtopic.php?f=23&t=1067&start=180

I was also told NO reduction in the interest charges will be received if I pay any lease amount off early.

 

[DaveinOlyWA]

i plan to do a ...ummm 4 or 5 payment lease probably

 

[MikeD]

edatoakrun: You wrote: "My (proposed) signatureONE lease, on line 5 b shows "N/A" as the capital cost reduction, and the Total (RAQ) sales price on line 5 c." -- yes, same as mine was.

As you said, "If so, bizarrely, NO capital cost reduction, either the $7,500 rebate or payment on lease signing, is accounted for, resulting in interest ("rent") charges on payments Nissan has already received!".

The only possible benefit is the sub-tier 0 money factor used (.00180 ==> 4.32%). Perhaps this would be advantageous to someone with a credit score requiring a high tier interest rate -- but one should still do a comparison of total costs involved in different lease agreements!

You said: "I was also told NO reduction in the interest charges will be received if I pay any lease amount off early.". No surprise there.

So paying off a normal lease monthly is actually better than paying it off early, because 1) assuming inflation, the value of your payments declines with time 2) you are more protected from your car being totaled in an accident or stolen as you are only out the lease payments paid up until then (you are still out any cash down payment and trade-in allowance you may have made, and the insurance deductible -- as well as the use of the car, and the option to buy the car at the end of the lease period).

I would be interested to know the difference in total costs between the "one payment" quote and the lease you decide upon...

 

[CampbellNelson]

Helloo Folks,
I thought I would put my 2 cents into this. The only major convenience of a 1 pay lease is not having to make any payments specially when the money factor difference is not that big (0.0018-0.00204). Based on my math, you are probably better off putting 1/2 down of the "one pay" cost and put the rest in a bank account with automatic deduction. Paying .00204 on half is better than paying 0.0018 on the whole thing. You also earn interest on that money.
Last, I would not put the Lessor in too much of an equity advantage. A great feature of Nissan Leases is that gap insurance is included free of charge which is great if the car gets stolen or totaled. It is paid off without having too worry about negative equity. Getting the positive equity could be troublesome since insurance companies know that gap is included.

 

[LEAFer]

edatoakrun: Were you told that the $7500 Federal tax refund (+ state rebate, if any) could not be used as part of the Capitalized Cost Reduction?

I am very interested in what you learn -- take your time! It can make a difference in the neighborhood of $700, if my calculations are correct. I will be glad to help you check your own calculations, if you like. The reason I am still interested even though it is too late for me is that I expect to talk to future Leaf buyers, and I would like to be able to give them authoritative lease info that may save them a sizable amount.

My (proposed) signatureONE lease, on line 5 b shows "N/A" as the capital cost reduction, and the Total (RAQ) sales price on line 5 c.
...
...
I was also told NO reduction in the interest charges will be received if I pay any lease amount off early.

Ed ... now that you have your LEAF ... what happened with your lease ?

 

[edatoakrun]

edatoakrun: Were you told that the $7500 Federal tax refund (+ state rebate, if any) could not be used as part of the Capitalized Cost Reduction?

I am very interested in what you learn -- take your time! It can make a difference in the neighborhood of $700, if my calculations are correct. I will be glad to help you check your own calculations, if you like. The reason I am still interested even though it is too late for me is that I expect to talk to future Leaf buyers, and I would like to be able to give them authoritative lease info that may save them a sizable amount.

My (proposed) signatureONE lease, on line 5 b shows "N/A" as the capital cost reduction, and the Total (RAQ) sales price on line 5 c.
...
...
I was also told NO reduction in the interest charges will be received if I pay any lease amount off early.

Ed ... now that you have your LEAF ... what happened with your lease ?

I got (I think) the same deal as every signature lease including the $10k down example already scanned and posted. By making the largest down payment allowed ($12,650) I will make accordingly lower monthly payments ($78.31) and lower total interest charges (at the same .00204 money factor).

So, while I didn't get the savings I thought I could from the signatureONE, I am satisfied in that I did get exactly the Lease deal promised with my RAQ, with (very close to) the maximum possible cap cost reduction under the formula MikeD posted earlier.

As noted above, the "signatureONE" lease, due to the NMAC "no capital cost reduction from your capital cost reduction payment" feature, IMO, would seem to only be useful if it helped lower your money factor significantly.

 

[qcar]

So I went in and sat with the PD for about one hour where I tried to take my 36/1200 lease and equal out the payments to zero. I had a $11,000 trade in and the $7,500 tax refund plus I was going to put cash down to push the depreciation to a negative to cover the rent. So after some back and forth it came out to about $6900 or so as cash out of pocket to make my payments 0. However, when I came back later in the day, they were able to find the one pay lease forms (earlier they said they couldn't do this anymore) and I only had to put about $5,700 down in cash. The residual stayed the same and it didn't appear that there was any finance charge at all. I got my $700 back for the ecotality program and expect my $5K rebate soon... so essentially I get to drive the leaf for 3 years at the cost of my trade-in which in 36 months might not have been worth much.

 

[clayj]

We asked our dealer (Eastside Nissan of Bellevue) for a one-pay lease, and they actively discouraged us. When the quote came back, it was actually far more expensive (I still haven't actually seen the money factors) than a "regular" lease with low payments. Here's the deal they proposed:

Our 2009 Forester in trade
39 lease payments of $82
$1,500 cash back

For a "one pay" lease, they said they would need an additional $3260 and we would get $0 cash back.

When we actually go in to take delivery, I'm gonna push 'em a bit more....

 

[Desertstraw]

I received my Leaf on June 16 from Avondale Nissan with a "one-pay lease" without any problems.

 

[MikeD]

clayj: From my experience, even though you only gave a broad outline of your lease quotes, I would say that your dealer seems to be steering you in the right direction.

In my estimation, a Nissan "one pay lease" only makes much financial sense if your credit rating is very low causing you to fall into Tier 3 (8.856%) or Tier 4 (10.896%) rates, whereas "one pay lease" uses a money factor of .00180 (4.32%).

The unexpected problem with the "one pay lease" is that its rules do not allow any customer cash (except via trade in) to be counted as part of the "Capitalized Cost Reduction", which causes you to pay interest on the unexpectedly large "Depreciation and Any Amortized Amounts". There is no such rule with Nissan's normal lease. ( It may be also useful to know that both leases require the "Adjusted Capitalized Cost" to be no smaller than Residual Value + $100.)

IMO you are doing the right thing to ask well in advance for lease quotes that may be of interest to you. The only other thing I could suggest is to try to verify that their numbers are reasonably close to your own calculations...