Purchase or Lease for Vehicle "Rollback" or "Unwind" (Previous Sale Failed) Newbie With Questions

[Gadget619]

Hello,

Newbie here with some questions and a story to tell...
Please help me to understand if this is a good vehicle purchase or not. I have not leased a vehicle before and would appreciate feedback and advice. I have read through many threads but haven't seen this scenario. Great forum and I look forward to contributing as I learn more. Thank you in advance for any assistance members provide!

I am in Southern California and ready to buy a 2015 Nissan Leaf SL. I had an "interesting" experience with a salesman at the dealer who was trying to sell me a used vehicle as a new vehicle. The 2015 SL was previously sold on November 9, 2015, taken home by the buyer and then returned to the dealership after one week on November 17th. This is now a used vehicle, however, all rebates and incentives are still valid. The salesman tried to sell me the vehicle as "new" stating it is an "Unwind" sale. I specifically asked if the vehicle was being sold as new or used and the salesperson said "new". There was no MSRP or other stickers on the vehicle exterior. I found the "Used Car" notice in the glove box after test driving the vehicle with the words "UNWIND VEHICLE" on the notice.

The California DMV website states an "Unwind" occurs when an Application for Registration of New Vehicle is completed but the sale was not consummated and the buyer never took delivery. To void the registration, the dealer has to complete a statement of facts stating the circumstances and that the vehicle never left the dealer's possession and was not operated on the operating copy of the Reg 397. This form is signed under penalty of perjury. Clearly this vehicle left the dealership for one week and was used by the previous buyer. It will have a previous owner on file with the DMV. I am concerned regarding the dealer claiming this is an Unwind sale when it does not appear to meet the DMV definition.

When I found out the vehicle was actually a used vehicle and not a new vehicle as the salesman had claimed, I complained about this sales tactic and was escalated to the Executive Manager. We talked about the status of the vehicle and eventually an offer was made to me on the "unwind vehicle".

The vehicle currently has been driven 176 miles. I would like to know if I am getting a good deal based on the following offer:

2015 SL Gun Metal Grey with Black Interior, plus (Splash Guards, Floor Mats & Cargo Net, Recycling/Organizer)
MSRP: $36, 570 (includes $850 for Destination and Handling) on the MSRP and an additional $500 Marketing Assessment on the Dealer Invoice
Dealer Discount and Rebate: $15,395 ($4,486 Dealer Discount + $10,825 Nissan discount in exchange for the $7,500 Federal Tax Credit)
Final Price after all rebates/incentives: $21, 175
Residual: $10,971.00
0 due at signing
Monthly payments (36 months) = $374.72

I would also be eligible for a $2,500 rebate from the State of California.

The dealer is holding the vehicle for 48 hours while I do my research and decide whether to purchase, negotiate further or walk away.

Questions:
Is this a good deal for a lease and what are the risks to purchasing an "Unwind" vehicle?
Should I be negotiating for a purchase? Normally I would but don't know if I could use the $7,500 Federal Tax Credit and know technology may improve considerably for EV's in the next 3 years.
The Dealer Invoice shows $35,084.00, should I be negotiating discounts from this price instead of MSRP price of $36,570?
Should I be negotiating from the cost of a used 2015 SL, since this is a used vehicle and the second sale?
Did the vehicle depreciate during the week it was sold to someone else and driven off the lot? California does not have a cooling off period for new vehicle purchases.
The Dealer has $3,000 in Dealer Incentive cash they will get back on the sale from Nissan, plus they will keep the $7,500 Federal Tax Credit. The dealer said I am getting all of the $3,000 Dealer incentive cash. Are there other rebates/incentives that can be applied to this purchase?
The warranties on the vehicle began on November 9, 2015. Is there a value to the reduced warranty coverage that I should be requesting as a discount on the purchase?

How do I know the manufacture date for the battery on this vehicle? I looked at the drivers door stickers and don't know how to read/decode the information on the two stickers. Should I use LeafSpy on this vehicle before my purchase? My OBDII interface arrives in one day.

I saw another member post their deal for an SL + Premium package with larger rebates/incentives ($18,101) in Virginia. Is it possible for me to get the same discounts in California? I don't know if there is a state rebate/credit in Virginia that is part of this amount. Here is their deal:

2015 SL+Premium
MSRP: 38140 (including destination)
Final Price after all rebates/incentives: 20039
Price after all dealer fees, taxes, tag, transporting the car from out of state dealership etc.: 22000
Residual: 11823
Money Factor: 0.00003
0 due at signing
Monthly payment (35 months) = 295

 

[LeftieBiker]

It is not a particularly great lease deal, considering that it's the rough equivalent of a demo vehicle. I'd make a lower offer if you really like the car, and walk away if you are ambivalent. Since it's a zero down lease, make sure there are no hidden fees, and then offer maybe $300 a month. I'd also talk to the previous owner about why it was returned!

 

[Valdemar]

Is that 30% residual for 36 months (10,971/36,570)? Ouch. For how many annual miles?

 

[Gadget619]

Annual miles are 15,000 per year. The dealer said it would only add around $7 or $8 a month if I paid in advance for the extra miles.

Can you suggest a good counter offer to the 30% residual and lower monthly payments? I would take lower monthly payments, as depending on technology in 3 years, I may not make a purchase at the end of the lease. This is my first time looking to lease and I don't want to be taken advantage of by the dealer.

Is that 30% residual for 36 months (10,971/36,570)? Ouch. For how many annual miles?

 

[Randy]

It may be an okay deal when you take into account the "no money down" aspect (certainly not a smoking great deal), but I'm not sure that I could get past the very high "weasel" factor at that particular dealership...I don't like to do business with people that are not honest...What else are they hiding?

Why not look into a new 2016 LEAF SL with the 25% additional battery capacity to see what that would cost? If it's almost the same or the same, I would go in that direction.

If it were me, I would send email inquiries for what you want to the fleet departments at various SoCal Nissan dealers to see what you can get....

 

[Valdemar]

Annual miles are 15,000 per year. The dealer said it would only add around $7 or $8 a month if I paid in advance for the extra miles.

Can you suggest a good counter offer to the 30% residual and lower monthly payments? I would take lower monthly payments, as depending on technology in 3 years, I may not make a purchase at the end of the lease. This is my first time looking to lease and I don't want to be taken advantage of by the dealer.

Is that 30% residual for 36 months (10,971/36,570)? Ouch. For how many annual miles?

No concrete number in mind, but 30% sounds awfully low, maybe I'm just not up to date with Leaf realities.

 

[LeftieBiker]

Can you suggest a good counter offer to the 30% residual and lower monthly payments? I would take lower monthly payments, as depending on technology in 3 years, I may not make a purchase at the end of the lease. This is my first time looking to lease and I don't want to be taken advantage of by the dealer.

Nissan seems to have set these low residuals, not the dealers. All you can do is get them to take as small a profit as possible, and not charge large "fees" for things like "prep" and "documentation."

 

[Gadget619]

I spoke with the dealership today to find out exactly why this vehicle was returned. The buyer brought the vehicle in to have a protective coating applied. During the process the service department damaged the bumper. The buyer got very upset and demanded a new vehicle. This damage was not disclosed to me when the salesperson was trying to sell the used vehicle as "new". Another minus in the honesty column.

Thanks for the tip for the fleet departments! I will start a search with them.

It may be an okay deal when you take into account the "no money down" aspect (certainly not a smoking great deal), but I'm not sure that I could get past the very high "weasel" factor at that particular dealership...I don't like to do business with people that are not honest...What else are they hiding?

Why not look into a new 2016 LEAF SL with the 25% additional battery capacity to see what that would cost? If it's almost the same or the same, I would go in that direction.

If it were me, I would send email inquiries for what you want to the fleet departments at various SoCal Nissan dealers to see what you can get....

 

[Gadget619]

The dealer told me the same thing. He said Nissan has set the residuals to be no higher than 30% and he has no control over this. I will ask a separate question to see if anyone else has got a recent lease with a residual higher than 30%. Thanks for the tip on the fees!

Can you suggest a good counter offer to the 30% residual and lower monthly payments? I would take lower monthly payments, as depending on technology in 3 years, I may not make a purchase at the end of the lease. This is my first time looking to lease and I don't want to be taken advantage of by the dealer.

Nissan seems to have set these low residuals, not the dealers. All you can do is get them to take as small a profit as possible, and not charge large "fees" for things like "prep" and "documentation."