5-YEAR DEPRECIATION OF $27,170 = USED NISSAN LEAFS ARE A STEAL

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GRA

Well-known member
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Via IEVS: https://insideevs.com/5-year-depreciation-of-27170-means-used-nissan-leafs-are-a-deal/

According to new data, the Nissan LEAF is the biggest 5-year depreciator among cars right now, which means a used one could be a real steal. . . .

  • 1. Nissan LEAF
    Base MSRP: $30,875; 5-Year Depreciation: $27,170; Retained Value: 22%. Electric cars in general tend to have weaker than average resale values on account of the one-time federal tax credit that effectively slashes their sticker prices by $7,500 (and even more if state cash incentives apply). The Nissan Leaf has been the top selling EV the last few years, which swells their supply in the resale market (at least among used electric cars), and in turn adversely affects its value.

So then, the math works out to $3,705 for that 5-year-old LEAF. We don’t think you’ll find one easily for that cheap, but you’ll definitely be able to get a deal on an older LEAF just as soon as you start searching for one. We see older LEAFs as cheap as $5,000 listed right now. . . .
Not that this is likely to be news to anyone who owns one.
 
This is way too simplistic an analysis because a person shopping for a $10k car is not shopping for a new car, tax credits notwithstanding.

Oh, the introduction of the new and much-improved LEAF means that value for the old LEAF will plummet even more, so buy that used LEAF now.
They got this wrong too. The new LEAF is not yet discounted, and certainly no where near the actual prices paid for new 30 kWh models a year ago. The price gap has *raised* the used LEAF market value as would be expected.

In fact, the entire analysis is shoddy although it is certainly true that used LEAFs are still excellent value if the car meets the customer use requirements ... and the consumer is informed enough to navigate the potential battery pitfalls.
 
I've yet to see an advert that reminds people that they can buy a replacement battery and end up with close to a brand new condition Gen 1 LEAF for well under $10k
 
I concur. I'm guessing the battery replacement must be rather daunting. So few people on this forum seem willing to consider that. And if the early adopters won't undertake that, I doubt many in the general used car market will go for that approach.
 
I don't think that is it. I've read multiple reports of people who decide to sell a Gen1 LEAF with a new battery (purchased or warranty) who do not get that much more money than a car otherwise similar with an old battery. It does not make economic sense, and I think it represents an information gap that can be exploited for profit. Of course, the existence of the market inefficiency implies widespread ignorance. The seller would have to be a patient and a talented communicator to educate the buyer and dispel any lingering FUD regarding the car that crapped out so early.

I know that when I bought my LEAF last year I considered buying a LEAF on its last battery legs but I don't live in the best part of the country for that approach and I was under the wrong impression that the replacement battery would only have a one year warranty. I thought at the time that a LEAF with a proven track record of slow battery degradation was a better bet than taking whatever Nissan had on the shelf.

The early adopters are probably a different story. They may feel screwed by Nissan after spending ~ $26k on a car that lasted 5 years and just want to walk away, or they are pursuing the next great EV. The Tesla forum is stuffed with current and former LEAF owners.
 
Definitely it wouldn't make sense to pay for the battery replacement just to turn around and sell it. That is not likely to be a money maker.

But I can certainly see people snagging an otherwise good car for a real low price and then paying to replace the battery and then having a like new, efficient car for a fraction of the cost. But that is going to appeal to a more adventurous buyer - one who can do the research upfront on the replacement as part of the purchase decision and then afford to buy a car, pay for the replacement all while letting it sit at the shop for xx days while the dealer does the replacement. If they are then going to keep it for the long term as a bargain car purchase, that can work out quite economically. If they are going to fixate on what they could then sell the car for, it won't pencil out.

But where are they going to do their research? A forum like this. Oh wait, not much posting on here by people who have done that... Guess it must not be a good idea if even the Leaf enthusiasts aren't willing to do it. And that is a real shame. I just reviewed the spreadsheets tracking the maintenance costs on all my family's cars. The Leaf blows away everything else we've ever owned in terms of low cost to maintain. As noted in another thread of 7-year owners and the conditions of their cars, it sounds like these last pretty well except for the battery.
 
the entire issue with the leaf is the non-conditioned batterie.if Nissan simply would condition it the resale would double plus and people might return as a customer. the car was great ,the batterie sucked.
 
DarthPuppy said:
I concur. I'm guessing the battery replacement must be rather daunting. So few people on this forum seem willing to consider that. And if the early adopters won't undertake that, I doubt many in the general used car market will go for that approach.
It isn't just the battery. There are other things that can and will fail on the car for which Nissan controls the cost of replacement parts. Witness $3k for a parking brake actuator and $480 just for some little water pump.
I'll be surprised if many of these cars are still on the road after 10 years.
 
In my case, I'm still happy with my 2012 delivered in December 2011. The Leaf shows 40,101 miles as of this morning. Expense thus far are: new tires @ $425 for four including everything (Disabled Veteran's discount); new Coolant circulator pump @ $565; new 12v battery @ $85; trailer hitch @ $265; cabin filters every year (DIY with trimmed Swiffer pads); LED Running lights (DIY); new seat-covers after burning a hole in one with dropped roach; towing hook @ $35; complete detailing every year @ $100 (including tips).

Stealer visit every 10k miles for first 30k miles (free); pronounced "excellent condition with slight degradation of capacity; No more Stealer free tests; $85 after last 30k check, so they can "KMSMA" (Bender's fave expression).

Car use has been all in and around the Nashville metro area out to some destinations at 50-60 miles, planned carefully for a refueling stop at end of first leg of mission run.

Largest loads? 30 bags mulch; ~400lbs manure from local farm (in trash bags, travel with windows down); 10 hay bales; 6 bags cement;

Now contemplating all-leather upholstery.

YMMV, IMHO, LSMFT.

Dave
 
My 2013 SV will probably be the only car I will ever own that actually pays me to own it. Our primary car was a 2003 Hyundai Santa Fe, that consumes about 15 l of gas per 100 km (15 mpg) - pretty brutal.

We were consistently spending over $400 per month on gas, prior to buying our LEAF.

Now, we spend about $50 per month on gas and $40 on electricity, as the Santa Fe is rarely used. So, net monthly savings is at least $310 per month. We purchased the LEAF outright, but had we financed the purchase on a 5 year loan the payments would be about $200 per month. So, even considering loan payments, we would still save $110 per month.

FYI, gas prices in Vancouver are predicted to go as high as $2 / liter this summer, which is roughly $6 US per gallon! At that price, a tank of gas for the Santa Fe would be $130 (65 liter tank).

Buying a LEAF is, so far, the best car buying decision I've ever made. The rapid depreciation made it affordable for us as a used car purchase, but with gas prices the way they are now even buying new (or leasing) would make sense vs a new ICE - at least, in Vancouver with expected gas prices.
 
SageBrush said:
I don't think that is it. I've read multiple reports of people who decide to sell a Gen1 LEAF with a new battery (purchased or warranty) who do not get that much more money than a car otherwise similar with an old battery. It does not make economic sense, and I think it represents an information gap that can be exploited for profit. Of course, the existence of the market inefficiency implies widespread ignorance. The seller would have to be a patient and a talented communicator to educate the buyer and dispel any lingering FUD regarding the car that crapped out so early.

I know that when I bought my LEAF last year I considered buying a LEAF on its last battery legs but I don't live in the best part of the country for that approach and I was under the wrong impression that the replacement battery would only have a one year warranty. I thought at the time that a LEAF with a proven track record of slow battery degradation was a better bet than taking whatever Nissan had on the shelf.

The early adopters are probably a different story. They may feel screwed by Nissan after spending ~ $26k on a car that lasted 5 years and just want to walk away, or they are pursuing the next great EV. The Tesla forum is stuffed with current and former LEAF owners.

I was told, more than once, the traction battery only has a 12 month/12,000 mile warranty. What information do you have that makes this no longer the case? Have they made a recent change of policy?
 
LTLFTcomposite said:
DarthPuppy said:
I concur. I'm guessing the battery replacement must be rather daunting. So few people on this forum seem willing to consider that. And if the early adopters won't undertake that, I doubt many in the general used car market will go for that approach.
It isn't just the battery. There are other things that can and will fail on the car for which Nissan controls the cost of replacement parts. Witness $3k for a parking brake actuator and $480 just for some little water pump.
I'll be surprised if many of these cars are still on the road after 10 years.

The 2011 vehicles are not far away from the ten year mark. I would definitely hold on to these cars because (other than the traction battery and fading paint on rear upper hatch) my two are holding up very well. What we would like, are longer range batteries in our cars with TMS and a better warranty than 12 months/12,000 miles. Although, right now, we have one too many Leafs and I need to decide what to do with one of them. There is no money in selling it...
 
Evoforce said:
SageBrush said:
I don't think that is it. I've read multiple reports of people who decide to sell a Gen1 LEAF with a new battery (purchased or warranty) who do not get that much more money than a car otherwise similar with an old battery. It does not make economic sense, and I think it represents an information gap that can be exploited for profit. Of course, the existence of the market inefficiency implies widespread ignorance. The seller would have to be a patient and a talented communicator to educate the buyer and dispel any lingering FUD regarding the car that crapped out so early.

I know that when I bought my LEAF last year I considered buying a LEAF on its last battery legs but I don't live in the best part of the country for that approach and I was under the wrong impression that the replacement battery would only have a one year warranty. I thought at the time that a LEAF with a proven track record of slow battery degradation was a better bet than taking whatever Nissan had on the shelf.

The early adopters are probably a different story. They may feel screwed by Nissan after spending ~ $26k on a car that lasted 5 years and just want to walk away, or they are pursuing the next great EV. The Tesla forum is stuffed with current and former LEAF owners.

I was told, more than once, the traction battery only has a 12 month/12,000 mile warranty. What information do you have that makes this no longer the case? Have they made a recent change of policy?

Yes, where's the info corroborating anything greater than 12/12,000, which is typically the case for all automotive parts. The exception
is when the Feds mandate greater warranties, e.g. emissions systems. Why would any automotive OEM want to "sign-up" for an on-going
liability greater than one year? Benevolence/goodwill in the automotive business is basically non-existent. This issue has been discussed
in other threads, and some continue to expect Nissan to change from its hard-line approach even for an original battery replacement,
without referencing "the fine print".
 
Evoforce said:
SageBrush said:
I don't think that is it. I've read multiple reports of people who decide to sell a Gen1 LEAF with a new battery (purchased or warranty) who do not get that much more money than a car otherwise similar with an old battery. It does not make economic sense, and I think it represents an information gap that can be exploited for profit. Of course, the existence of the market inefficiency implies widespread ignorance. The seller would have to be a patient and a talented communicator to educate the buyer and dispel any lingering FUD regarding the car that crapped out so early.

I know that when I bought my LEAF last year I considered buying a LEAF on its last battery legs but I don't live in the best part of the country for that approach and I was under the wrong impression that the replacement battery would only have a one year warranty. I thought at the time that a LEAF with a proven track record of slow battery degradation was a better bet than taking whatever Nissan had on the shelf.

The early adopters are probably a different story. They may feel screwed by Nissan after spending ~ $26k on a car that lasted 5 years and just want to walk away, or they are pursuing the next great EV. The Tesla forum is stuffed with current and former LEAF owners.

I was told, more than once, the traction battery only has a 12 month/12,000 mile warranty. What information do you have that makes this no longer the case? Have they made a recent change of policy?

no change in policy. The degradation warranty starts with delivery day and any replacement pack has the one year, 12,000 mile or the remainder of the original warranty, whichever is greater.
 
@JPWhite has bought a replacement warranty and clarified in a PM to me that he received a 5yr/60k degradation warranty. Whether that is still true today is uncertain.
 
SageBrush said:
@JPWhite has bought a replacement warranty and clarified in a PM to me that he received a 5yr/60k degradation warranty. Whether that is still true today is uncertain.

that would only happen if he bought a new pack. warranty replacements do not reset the clock on the original pack but has a minimum 12 months that applies if its longer.
 
DaveinOlyWA said:
SageBrush said:
@JPWhite has bought a replacement warranty and clarified in a PM to me that he received a 5yr/60k degradation warranty. Whether that is still true today is uncertain.

that would only happen if he bought a new pack. warranty replacements do not reset the clock on the original pack but has a minimum 12 months that applies if its longer.
Oops -- typo.

I meant to type that he bought a replacement pack.
 
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