Reddy
Posts: 1412
Joined: Fri Feb 11, 2011 3:09 pm
Delivery Date: 18 Aug 2011
Leaf Number: 006828
Location: Pasco, WA

Re: Used Leaf Future Depreciation

Wed Jan 04, 2017 6:27 pm

You have your answer from the salesperson. They said zero or worthless. What they actually mean is zero is what they will pay you for it because they still have to make a profit on the resale at retail prices. Since most dealerships look to get $2000-$4000 profit on a used car, you can expect the future value will be in that range. I've seen this over and over. People forget about the difference between wholesale and retail as well as the fact that trading in a used car when buying a new one is actually two transactions (and typically this is where the dealerships make their big profits). Add to this the $7500 US tax credit and state or local incentives for buying new, and it makes it difficult to compare used with new. If I can get a new Leaf for less than $20,000, someplaces even closer to $15,000, why would I pay more than $10,000 for used, older technology, with a degraded battery? Don't agree? Then how about you buy my 386 computer still running Windows 95 for $2000? Sad as it is for us original 2011 owners, it's a big benefit for the low income buyers. Gee, those tax incentives for the "rich" have actually trickled down to the poor (well maybe not poor but rather, middle class).
Reddy
2011 SL; 9 bar, 46.44 AHr; 40,067 mi; rcv'd Aug 18, 2011
Long: http://www.mynissanleaf.com/viewtopic.p ... al#p226115"
Cold: http://www.mynissanleaf.com/viewtopic.p ... 60#p243033"

SageBrush
Posts: 1108
Joined: Sun Mar 06, 2011 2:28 am
Delivery Date: 13 Feb 2017
Location: Colorado

Re: Used Leaf Future Depreciation

Wed Jan 04, 2017 7:04 pm

OP, why do you *have* to dump your ICE car now ?
I suspect you will find that even if you have to dump $2000 into your current car to keep it running until the M3 comes along, it will work out to be considerably less expensive than playing an 18 month swap game.
2013 Model 'S' with QC & rear-view camera
Bought off-lease Jan 2017 from N. California with 63.9 Ahr after 22k miles
Car is now enjoying an easy life in Colorado

powersurge
Posts: 683
Joined: Wed Oct 21, 2015 10:24 am
Delivery Date: 06 Dec 2014
Location: Long Island, NY

Re: Used Leaf Future Depreciation

Thu Jan 05, 2017 5:02 am

If this original poster is worried of depreciation of a $6k car, then you certainly ARE NOT financially sound to be buying this, or any newer car.

You sound like you are a young person, and I would recommend, like I have done with my children to buy a $2K old civic or corolla, and then sell it for close to that price in 1-2 years.

Also if these are your concerns, please get into reality and stop talking about a Testla.... That is the worst investment of a working person's money.... If you want a toy, get a 4K TV.

wvleaf
Posts: 12
Joined: Tue Nov 17, 2015 8:51 am
Delivery Date: 14 Nov 2015
Leaf Number: 308254
Location: Charleston, WV

Re: Used Leaf Future Depreciation

Thu Jan 05, 2017 8:18 am

tattoogunman wrote:
LeftieBiker wrote:I don't think a $6500 Leaf would depreciate to less than $4k in 2 years unless the range fell to under 30 miles.


Why not? I'm already seeing one year old 2015's for sale for $10K or less and that means they have lost over $20K in a year. I would say based off of the prices I have seen, it is very likely a $6500 Leaf could be worth half that in the next two years. Unless gas prices go back up to near $5/gallon, I think these EV cars are going to continue to suffer from this.


That's not really a fair comparison since the new 2015 Leaf didn't really sell for close to $30K once you had factory incentives and the tax credit. Including those, I bought my S for about $16K new with 0% financing. I could have bought used for less, but I was willing to pay more for the full warranty, the new chemistry, and peace of mind knowing that I wasn't buying someone else's problem. I'm waiting on a Model Y - never cared for low riding/low roofline sedans being on the big/tall side. I figure by the time the Y arrives, I'll be ready to replace the Leaf and will have gotten several years of use and gas savings out of it even if it's basically worthless.

I'm hopeful that Nissan (or a third party) will make higher capacity replacement packs available for the Leaf at a reasonable price as new technology is introduced. That would certainly make used Leafs more attractive and throw a few bucks towards the dealers.

WILK
Posts: 9
Joined: Wed Jan 04, 2017 8:40 am

Re: Used Leaf Future Depreciation

Thu Jan 05, 2017 9:22 am

Powersurge - thanks for the lecture, however you are making a lot of assumptions that are completely untrue. I definitely have enough $$ to buy this car, why is it a bad thing to wonder about how much money I could potentially lose regardless of the total value? I am simply trying to weigh different options based on the financial implications, and the reason I can make these decisions is because I am intentional with the way I spend my money. I want a reliable car for the next 18-24 months that does not have excessive mileage, and the Leaf is intriguing because I can ease into the EV lifestyle. My Tesla is going to be the car I have for the extended foreseeable future, so while it will depreciate I am not as concerned based on the time of ownership.

powersurge
Posts: 683
Joined: Wed Oct 21, 2015 10:24 am
Delivery Date: 06 Dec 2014
Location: Long Island, NY

Re: Used Leaf Future Depreciation

Thu Jan 05, 2017 10:35 am

Good luck with your vehicle-buying adventure...

User avatar
DuncanCunningham
Forum Supporter
Posts: 417
Joined: Thu Mar 26, 2015 10:02 am
Delivery Date: 15 Apr 2015
Location: Bountiful, UT

Re: Used Leaf Future Depreciation

Thu Jan 05, 2017 11:10 am

Maybe just buy one and keep, even if you do end up getting a Tesla, and have a leaf too.
Statler: Wake up you old fool. You slept through the show.
Waldorf: Who's a fool? You watched it.

2015 Leaf S (leased until May 2018, Bought out in Jan 2017)
2012 Leaf SL (purchased May 2015)

silverone
Posts: 87
Joined: Sat Jan 02, 2016 4:29 pm
Delivery Date: 03 Jan 2017
Location: Eastern OH

Re: Used Leaf Future Depreciation

Sat Jan 07, 2017 5:09 am

WILK wrote:Powersurge - thanks for the lecture, however you are making a lot of assumptions that are completely untrue. I definitely have enough $$ to buy this car, why is it a bad thing to wonder about how much money I could potentially lose regardless of the total value? I am simply trying to weigh different options based on the financial implications, and the reason I can make these decisions is because I am intentional with the way I spend my money. I want a reliable car for the next 18-24 months that does not have excessive mileage, and the Leaf is intriguing because I can ease into the EV lifestyle. My Tesla is going to be the car I have for the extended foreseeable future, so while it will depreciate I am not as concerned based on the time of ownership.


With my crystal ball, I see a value floor around $3000 as long as it still has usable battery capacity and has a reasonably straight body. As others have said, at this number, this is not a trade-in value, but more of a Craigslist value since most dealers want more profit margin. For your specific situation, why not estimate that you'll lose $500 per quarter and consider anything you get back over $3000 a bonus? It probably won't be cheaper than whatever gas car is available to you, but you'll be able to have reliable and relatively new EV transportation.

My floor number is based on the quality of the typical $3000 car, a 150,000+ mile beat up compact car with marginal reliability. If we're not already there in the 6-7K range, I believe 3-4K will be the point that Joe Sixpack won't be able to resist a newer car with 1/3 the miles of everything else he's looking at.
2013 SL with Premium package - build date 5/13. 12 bar car with 43,000 miles and counting... Don't expect the first bar to last to 50,000 miles!

2014 Volt - 46,000+ miles

tattoogunman
Posts: 98
Joined: Tue Jun 07, 2016 6:17 pm
Delivery Date: 08 Jun 2016
Location: Plano, Texas

Re: Used Leaf Future Depreciation

Sun Jan 08, 2017 7:51 pm

wvleaf wrote:
tattoogunman wrote:
LeftieBiker wrote:I don't think a $6500 Leaf would depreciate to less than $4k in 2 years unless the range fell to under 30 miles.


Why not? I'm already seeing one year old 2015's for sale for $10K or less and that means they have lost over $20K in a year. I would say based off of the prices I have seen, it is very likely a $6500 Leaf could be worth half that in the next two years. Unless gas prices go back up to near $5/gallon, I think these EV cars are going to continue to suffer from this.


That's not really a fair comparison since the new 2015 Leaf didn't really sell for close to $30K once you had factory incentives and the tax credit. Including those, I bought my S for about $16K new with 0% financing. I could have bought used for less, but I was willing to pay more for the full warranty, the new chemistry, and peace of mind knowing that I wasn't buying someone else's problem. I'm waiting on a Model Y - never cared for low riding/low roofline sedans being on the big/tall side. I figure by the time the Y arrives, I'll be ready to replace the Leaf and will have gotten several years of use and gas savings out of it even if it's basically worthless.

I'm hopeful that Nissan (or a third party) will make higher capacity replacement packs available for the Leaf at a reasonable price as new technology is introduced. That would certainly make used Leafs more attractive and throw a few bucks towards the dealers.


Sure it is - market resale value isn't based off what people paid or didn't pay for their cars, it's based off market residual value of the car's MSRP. You could have gotten that car for $10,000 or less, but that doesn't mean its resale value is going to be any higher than it really is.

I finally got around to driving a '14 S the other day and was not impressed. If I ever do consider the Leaf again, it would definitely have to be a 200 plus mile range, better interior/exterior design/build quality, and it would have to have a tad bit better performance. That car screamed cheap even though it was expensive when new - purely my personal opinion.

wvleaf
Posts: 12
Joined: Tue Nov 17, 2015 8:51 am
Delivery Date: 14 Nov 2015
Leaf Number: 308254
Location: Charleston, WV

Re: Used Leaf Future Depreciation

Sun Jan 22, 2017 9:02 am

tattoogunman wrote:
wvleaf wrote:
tattoogunman wrote:
Why not? I'm already seeing one year old 2015's for sale for $10K or less and that means they have lost over $20K in a year. I would say based off of the prices I have seen, it is very likely a $6500 Leaf could be worth half that in the next two years. Unless gas prices go back up to near $5/gallon, I think these EV cars are going to continue to suffer from this.


That's not really a fair comparison since the new 2015 Leaf didn't really sell for close to $30K once you had factory incentives and the tax credit. Including those, I bought my S for about $16K new with 0% financing. I could have bought used for less, but I was willing to pay more for the full warranty, the new chemistry, and peace of mind knowing that I wasn't buying someone else's problem. I'm waiting on a Model Y - never cared for low riding/low roofline sedans being on the big/tall side. I figure by the time the Y arrives, I'll be ready to replace the Leaf and will have gotten several years of use and gas savings out of it even if it's basically worthless.

I'm hopeful that Nissan (or a third party) will make higher capacity replacement packs available for the Leaf at a reasonable price as new technology is introduced. That would certainly make used Leafs more attractive and throw a few bucks towards the dealers.


Sure it is - market resale value isn't based off what people paid or didn't pay for their cars, it's based off market residual value of the car's MSRP. You could have gotten that car for $10,000 or less, but that doesn't mean its resale value is going to be any higher than it really is.

I finally got around to driving a '14 S the other day and was not impressed. If I ever do consider the Leaf again, it would definitely have to be a 200 plus mile range, better interior/exterior design/build quality, and it would have to have a tad bit better performance. That car screamed cheap even though it was expensive when new - purely my personal opinion.


No argument on the resale value, it is what it is. Perhaps I misinterpreted your original statement and read it as everyone who bought a new Leaf suffered $20K in depreciation. The difference between MSRP and resale being $20K, sure. In my case, starting at $16K and selling it at $6K is an actual depreciation of $10K for me personally, regardless of what the MSRP is and that's the number I care about. Point being, the MSRP is a fiction on the Leaf due to the reality of tax credits, rebates, and incentives and individual depreciation experience is far less as a result.

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