.00304 money factor on near 800 FICO. Is it normal? So Buy!?

[jason98]

So my car (SL,QC) has been finally delivered week ahead of the estimate. Today I visited my dealer to get a list of all possible finance options.
I was still open to both leasing or buying.
One thing that got me by surprise was pretty high interest on lease: 0.00304 (or 7.3%)
My CU gives me up to 5 year loan on a new car for 2.99%
I guess I will have to go with buying since by the end of 36 months I would end up with "savings" of almost 5k (and that's including interest I will pay to CU).

And again comparing to lease, imagine if these 5k of savings would go towards hypothetical residual value (~16k), I would only had 11k left more to pay out after 36 moths. And I believe the car will have a value of way more than 11k in three years. Right?

 

[mwalsh]

And I believe the car will have a value of way more than 11k in three years. Right?

The way gas prices are going.....it will be like having your own personal stash of gold bars. Well, not quite. But almost!

Buying was the only choice that made sense to me too, come the actual day to sign on the dotted line. In my opinion, the only real wild-card will be how the battery pack will hold up over the long term.

 

[evnow]

One thing that got me by surprise was pretty high interest on lease: 0.00304 (or 7.3%)
My CU gives me up to 5 year loan on a new car for 2.99%

Leasing with anything other than 0.00204 (4.9%) makes it too expensive to lease. You can tell your PD that you won't lease unless they give you the rate Nissan gives without any markups.

 

[evnow]

The way gas prices are going.....it will be like having your own personal stash of gold bars. Well, not quite. But almost!

Depends also on whether other manufacturers come up with the promised EVs and how easy it is to get an EV in 3 years. I hope easier than now ...

 

[jason98]

One thing that got me by surprise was pretty high interest on lease: 0.00304 (or 7.3%)
My CU gives me up to 5 year loan on a new car for 2.99%

Leasing with anything other than 0.00204 (4.9%) makes it too expensive to lease. You can tell your PD that you won't lease unless they give you the rate Nissan gives without any markups.

Even with 0.00204 I still see a "penalty" of roughly $3k. I guess that't the price for ease of mind getting $7500 back plus option to keep money after 3 years.

 

[en11]

I believe there is additional saving on the lease as you only pay tax on the leased portion and not on the residual.
This adds back about $1.3k over the life of the lease.

 

[LakeLeaf]

Jason - good for you for doing some research on your financing options so that you don't have to simply accept what a dealer is trying to force on you.

I'm always astonished at the number of people who walk into a dealer, who need to finance a purchase, and who haven't done any research on the various non-dealer financing options available to them. Heck - I'm astonished that people go to a dealer without already being pre-approved for a loan a bank or credit union.