Is paying MSRP Normal?

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charlestonleafer

Well-known member
Joined
Sep 18, 2011
Messages
138
Location
Charleston, SC
Had the most exciting Saturday 2 days ago. Was driving down the street and spotted a Nissan Leaf in a showroom. I have read and heard so much about this vehicle, and I couldn't believe it was real, I was actually going to get to see one in real life! You see, in Charleston, SC we are the last to get everything, so I couldn't believe a dealer here actually had a Leaf! Anyway, to make a long story short, I was amazed, and had to have one. I ran home, and went through the procedure online to pay may $99 reservation, and get my assessment for my charger install. After I completion I noticed there were a few options offered me, one of which being to get a quote from another dealer. It warned me though, that if I took this option, it wouldn't hold my spot to order. That being said, should I get another quote? or does everyone pay MSRP? I spent a lot of hours searching this forum for the answer, but knowing my luck it's hiding in plain sight. Also, I have read some people talking about leasing, and buying out there lease in a few months, so they basically get the tax credit immediately. Does this work? I can't lease because I drive too much, I put about 30k on a car per year, so leasing wouldn't work for me, but I sure would like to get that tax credit immediately! Thanks in advance for all of your help and wisdom!
 
People have paid anywhere from MSRP to $1,500 under for ordered cars. It depends on the market and the dealer(s). One option, if you want the tax credit right away, is to lease and then immediately buy out the lease.
 
Okay, thanks for the quick reply. As far as the leasing first and then buying out, should I change it in my order details on the nissan site? Or does it not really matter until my car gets here? Should I tell the sales guy about my plan, or just keep it to myself. These may all be ridiculous questions, but I've never ordered a car in as much demand as this one, nor have I leased, I've always purchsed.
 
TomT said:
People have paid anywhere from MSRP to $1,500 under for ordered cars. It depends on the market and the dealer(s). One option, if you want the tax credit right away, is to lease and then immediately buy out the lease.


$1800 under.
 
Many many are paying msrp. Before you switch dealers on the dashboard, call the new dealer and see if there is any discount.

If you pay 7000+ in federal tax I think you are better to just make the purchase from the beginning.
 
Sounds like the dealer had the right idea about putting their Leaf in plain view. Hooked you right off the street!

You don't say if the Leaf you saw was an orphan (a car which was ordered by an individual, but ultimately not purchased) or their demo car. It is probably safe to say that very few orphans go for less than MSRP, so if it is an orphan and is what you want at MSRP, lock it up now. In California, some of the more competitive dealers sell their occasional orphans at MSRP, but MSRP +1000, +3000, and +5000 are not uncommon. I can't find the exact thread, but I believe one person even posted a picture of a +9000 car at one location. Ordered Leafs are not uncommon at MSRP-1000, -1500, and even -5%. Some percent discounts apply to just the MSRP, others to options also, so it pays to ask.

Since Leaf orders only recently opened in your state -- and for 2012 models, not 2011 -- I'm guessing that you saw their demo vehicle. I haven't closely followed the sales info in the newer Tier 2 states, but from the Board Index you can find local threads. Check there for reports on prices from dealers in your area and adjacent states. You can always choose to have your car delivered from one of these other dealers if the cost savings outweigh the additional transportation costs and inconvenience. Unlike every other car for sale today, YOU order the car from Nissan and then have dealers "bid" to deliver it to you. Most people work the deal with the dealer before sending the Request A Quote (RAQ) from the website, but you can always switch dealers at the marginal penalty of moving back the end of the line. How far back obviously depends on how long you have been in line, and less obviously on things like color (Blues used to take longer) and options which Nissan may group together in production. Deliveries seem to be taking around 3 months lately.

As for the Federal tax credit, leasing gives you the ability to benefit from it immediately instead of at the end of the tax year. Further, for people without enough tax liability to take the whole credit in a single year (it does not carry over), this may be their best choice. For our car, we went with the lease (a first for us) precisely because of the tax issue and plan to buy it out at the beginning of 2012. Whether one can buy it out immediately or after 3 months seems to be a point of contention on this Board, so you might want to ask your dealer for their opinion if this is important to you. In exchange for getting the whole tax credit, you will likely give up an "Acquisition Fee" on a lease, plus be doing the lease at 4.99% (money factor of .00204) or more instead of much lower finance rates available through Nissan or your local banks or credit unions. Have your dealer give you complete (down to the gnat's eyelash in detail) on every cost before accepting the RAQ and actually getting in the delivery line.

Good luck with your adventure. Be advised that if you press the "Accept RAQ" button you will be condemned to months of MyNissanLeaf reading -- often many times a day -- and ultimately the indignity of tracking ships form Japan and trains across the continent, all in the vain attempt to divine the precise delivery date of your own car. "Beyond Here There Be Dragons!" We're glad we made the decision. :D
 
It was definitely a demo, It didn't even have a price on the window sticker. The one salesman they have authorized to sell the Leaf was nice enough to pull it out of the showroom and take it for a spin! Thanks for all the info, this forum is helping me out a great deal! I wish I could figure out how to post a pic of the one at the dealer. All in do time I guess.
 
As I'm also in a Tier 2 state (IL), you'll probably see little discounting initially in SC as most of the dealers are getting rather small monthly allowances for Leaf's so they simply don't have access to more cars like the Tier 1 dealers. Watch for dealer add-on fees that inflate the price (some gouging was going on in FL as their 'doc and prep' fees are unregulated; some dealers add-on excessive 'marketing/advertising' fees as well). As far as the buy/lease aspect, looks like SC offers additional incentives; if it's like IL, you may only be able to get the incentive if you are the original buyer (not a through a leasing company) so check with your SC agency that regulates the program (master chart below of state by state incentives) as you wouldn't want to lose out! Here are a few links I came across that could help get you started ...

http://www.sctax.org/NR/rdonlyres/0D5CBB97-1A9F-466E-99F2-3FBC9B09E219/0/IL0623.pdf

http://www.pluginamerica.org/incentives
 
charlestonleafer said:
Okay, thanks for the quick reply. As far as the leasing first and then buying out, should I change it in my order details on the nissan site? Or does it not really matter until my car gets here? Should I tell the sales guy about my plan, or just keep it to myself.
The actual leasing details are worked out with the delivering dealer. A "no surprises" delivery is better for both you and the dealer, so I would recommend putting all your cards on the table now when you have some leverage by being able to move the delivery. One part of the lease cannot be finalized until the actual delivery is made, and that is the money factor (interest rate) which will hinge on your credit score at the delivery date, not the date of ordering. Because the actual rate may be obscure on the lease paperwork, some dealers have been reported trying to increase it for higher profit. Most dealers reported on this forum have been honest and straight-forward, but good paperwork at the beginning keeps everyone honest.
 
Okay, I'll have a talk with my salesman, but I'm still waiting on him to reply with a price. I was thinking of telling him (after he gives me the price of course) that I'll give him 20% of whatever money he can knock off the price. I'm not sure what the commission these guys get, but I'm hoping that'll give him some incentive to give me the best deal possible, but we'll see!
 
Since you said you drive 30,000 miles per year ... I do want to make sure you've planned ahead a little. I do *NOT* want to talk you out of a LEAF (rather the opposite), but 30k/year is a lot. Driven 365 days/year that's 82 miles per day (!). That's doable in a LEAF (depending on weather and driving conditions), but I suspect you are not driving EVERY day. Therefore you must be doing longer stretches quite frequently. Do not count on 100 miles per charge, unless you are planning ahead and doing lower-speed city driving and/or hypermiling.

Again ... would love for the LEAF to meet your needs and get you started driving electric :) but plan ahead ( my apologies if you've already had this all worked out; if you are sharing the miles with an ICE car you are not putting 30k on the leased LEAF ... etc ) ...

charlestonleafer said:
I can't lease because I drive too much, I put about 30k on a car per year, so leasing wouldn't work for me, ...
 
charlestonleafer said:
Okay, I'll have a talk with my salesman, but I'm still waiting on him to reply with a price. I was thinking of telling him (after he gives me the price of course) that I'll give him 20% of whatever money he can knock off the price. I'm not sure what the commission these guys get, but I'm hoping that'll give him some incentive to give me the best deal possible, but we'll see!
I've got to think that doing something like that would probably get him fired if discovered.
 
I guess I should've been a little more clear, I put 30k on my ICE car that I have now. But that's also with some traveling. I've calculated with the leaf I'll drive about 60 miles per day M-F, and my wife will probably drive it to work on the weekends rather than using her ICE car, and of course when I'm out of town she'll drive the Leaf. All of that being said, I'm thinking it'll be around ~23k per year. But I'll be honest, I plan on driving it as much as possible!
 
Just an additional word of support for HighDesertDriver's excellent recommendations. Do definitely get the lease and purchase details IN WRITING in full detail from your dealer before doing your RAQ and locking yourself in with that dealer. And it doesn't hurt, in friendly businesslike terms, to let him know that you are trying to decide which dealer you want to bring your order to. He may work a bit harder when he realizes that you are well aware that you are in the driver's seat. That was how the discounting started here in CA. A few dealers realized that they could get a lot of the LEAF business by discounting by $1,000, and the ball started rolling from there.

Do realize, though, that Nissan has now limited the degree to which one or a few dealers can try to lock up the market in a given area. They now limit the number of reservations each dealer can take each month.
 
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