crabasa wrote:I'm really not sure why anyone would choose to buy, given the fact that you can purchase the car outright at the end of the lease.
One point: If you buy the car after the lease by financing instead of just writing a check, you are not be eligible for 0% financing. You could probably get 1.9% financing on the residual, because it is then considered a pre-owned vehicle. So that adds cost compared to purchasing up front, with the prevalent 0% financing offers available today.
souledgeii wrote:Not sure why people buy it right now
I bought rather than lease because it was less expensive over the long term. The following were my options and math:
2014 Leaf S with Charger package.
MSRP: 31,400 (in Los Angeles)
Sale Price: $28,413 (after negotiating down using Costco prices and TrueCar prices)
-$2500 Nissan Cash back
-$2500 CA Rebate (will receive in September)
-$7500 Fed Tax credit (will receive next year with tax refund)
+$2,956.37 Sales tax, destination charge, license registration fees, documentary fees, etc.Net out of pocket cost after car is paid off: (6 years)
0% financing over 72 months. (a zero percent loan is essentially free money)
Reduced the capitalized cost by $8200 (this includes Nissan's $7500 tax credit passed on to the consumer, plus $700 just to sweeten the deal.)
Resulting in a lease offer of:
$3500 drive-off (including a down payment, all fees, tax on the passed-on fed tax credit, etc.)
$188/month 36 months (including taxes etc.)
Out of pocket cost after 3 years:
-$2500 CA rebate
Net out of pocket cost after 3 years including rebate:
Residual (cost to buy after lease is up in 3 years):
$13,000.Net cost of leasing for 3 years and then purchasing (writing a check for the residual):
$7,768 + $13000 = $20,768
So, to sum up:
Net out of pocket cost to PURCHASE:$18,869.37
Net out of pocket cost to LEASE for 3 years and THEN purchase:$20,768
Savings of purchasing up front compared to leasing-then-buying:$1898.63
--If you didn't want to purchase the car at the end of the lease, then your costs for the leaf would be only $7,768
over the 3 years. But after that you will probably get another lease or purchase a new car. If you are getting another lease on an EV, it's unlikely to be as good a deal as current leases, especially since the current tax incentives and rebates will diminish. So your total cost after another 3 years will be at LEAST double the 3 year out-of pocket, so $15,536 total out of pocket after 6 years
. Lease a third time and you are at LEAST at 3x the original lease ($23,304) after 9 years, where as someone who purchased up front has only spent $18,869.37 and finished paying 3 years prior.
--If the battery degrades, then at least I know I have the option of Nissan's $100/month battery lease program. Say I activate that 6 years from now: $100/month is better than any lease I could get on a new EV, and the car will be paid off by then. With other maintenance being minimal (tires, brakes, coolant), paying $100/month to extend the life of the paid off car seems a better option than a new lease. At least, for my driving needs.