24 versus 36 month lease

[dndrich]

Leafpals:

I think I am about to pull the trigger. I notice that most of you are going for 24 month leases instead of 36 month leases. Any particular reason why? I am in California, and with a 36 month lease we get a $2500 rebate, but not with a 24 month lease. As a practical matter it doesn't make much difference to the bottom line, but I am wondering why folks are going for 24 month leases?

 

[Randy]

If you're serious about getting a 36 month lease, I would you do it ASAP. The rebate money is only good for a few more days, and while they're trying to find more money for the fund, there's no guarantee.

 

[dndrich]

If you're serious about getting a 36 month lease, I would you do it ASAP. The rebate money is only good for a few more days, and while they're trying to find more money for the fund, there's no guarantee.

I think it got replenished. You are correct there is no guarantee for sure! Still want to know why 24 months for most folks...

 

[apvbguy]

Leafpals:

I think I am about to pull the trigger. I notice that most of you are going for 24 month leases instead of 36 month leases. Any particular reason why? I am in California, and with a 36 month lease we get a $2500 rebate, but not with a 24 month lease. As a practical matter it doesn't make much difference to the bottom line, but I am wondering why folks are going for 24 month leases?

I am not in CA, so the rebate issue is not in play for me.
when I completed my lease deal in early april the terms for a 24 month lease were better than the terms for the 36 month lease, it is rare that a shorter term dollar vs dollar is a better deal but it was

 

[surfingslovak]

I think it got replenished. You are correct there is no guarantee for sure! Still want to know why 24 months for most folks...

My friends signed a 24-month lease in CA last weekend. It was comparable to a 36-month lease with the rebate factored in, and they would prefer to look at the market again sooner than later. The technology is improving quickly, and they expect to see new and different choices when selecting their next EV. That said, I'm under the impression that the federal tax credit takes care of the majority of the depreciation on a 24-month lease. The CA rebate is very nice, but the depreciation on a 36-month lease is greater, and you have the added headache of applying for the rebate, and staying in compliance for the following three years. Why would you do all that, if the economic benefits, in terms of lower overall lease cost, turns out to be not very significant? Plus, depending on where you live and how the car is parked and used, battery capacity loss could be more of an issue when you keep the vehicle longer.

 

[dndrich]

I think it got replenished. You are correct there is no guarantee for sure! Still want to know why 24 months for most folks...

My friends signed a 24-month lease in CA last weekend. It was comparable to a 36-month lease with the rebate factored in, and they would prefer to look at the market again sooner than later. The technology is improving quickly, and they expect to see new and different choices when selecting their next EV. That said, I'm under the impression that the federal tax credit takes care of the majority of the depreciation on a 24-month lease. The CA rebate is very nice, but the depreciation on a 36-month lease is greater, and you have the added headache of applying for the rebate, and staying in compliance for the following three years. Why would you do all that, if the economic benefits, in terms of lower overall lease cost, turns out to be not very significant? Plus, depending on where you live and how the car is parked and used, battery capacity loss could be more of an issue when you keep the vehicle longer.

Gotcha. That is some of my thinking as well. The $7500 tax credit is a huge issue. Leasing makes that so nice. You get it all up front. Plus, I pay significant AMT on my taxes anyway, so at least with the lease that is not an issue!

 

[DesertDenizen]

I went for a 24 month lease on my 2012 because here in Tucson I lost a capacity bar at 6771 miles on my 2011 Leaf. It was disconcerting; every time I started my Leaf I would anxiously look to see if I lost a second bar. With my two year lease I just enjoy the car with no worries.

 

[Petecomp1]

24 month lease for me. Battery life is the primary issue; new technology is the secondary issue. Nissan refuses to address the most important sales factor which is, we all know the battery doesn't last forever and that performance degrades over time, and who wants to deal with that? So why is there no Nissan pro-rated battery replacement program?? I like my Leaf well enough that I'd buy it, if this were addressed by Nissan. It'd be a smart marketing move to tell prospective buyers they (Nissan) will do whatever it takes to insure Leaf owners have a cutting-edge battery available to swap in when the old one expires. I'd be willing to pay for it I think.
I'm confident that, in 2 years, there will be a better selection of BEV's on the market that have more range and better battery chemistry. That's a gamble, admittedly, but I like to live on the edge
Pete

 

[planet4ever]

Battery life is not going to be an issue on a three year lease in Sonoma County. Of course if there was a chance you might need or want to move out of state in the next three years, that would be an issue, as you would have to refund the "unused" part of the three year $2500 rebate. A bigger question might be what you guess will be available to replace the car at end of lease, if that is 2015 vs. 2016. I finally went with a three year lease partly because I decided there was zero chance of a major battery upgrade in the 2014 LEAF, a reasonable chance they might have one in 2015, and a very strong chance it would be available by 2016.

Ray

 

[dndrich]

Battery life is not going to be an issue on a three year lease in Sonoma County. Of course if there was a chance you might need or want to move out of state in the next three years, that would be an issue, as you would have to refund the "unused" part of the three year $2500 rebate. A bigger question might be what you guess will be available to replace the car at end of lease, if that is 2015 vs. 2016. I finally went with a three year lease partly because I decided there was zero chance of a major battery upgrade in the 2014 LEAF, a reasonable chance they might have one in 2015, and a very strong chance it would be available by 2016.

Ray

That is interesting. No, no chance of moving out. I'm a lifer here for sure. The $2500 rebate does help the overall price per year by my calculations.

 

[SteveInSeattle]

Payment was $70 less for 24 month... And, with the $7500 credit I can get a nice new clean one again in 2 years!

 

[mbender]

No, no chance of moving out. I'm a lifer here for sure.

A lifer who is soon to be a LEAFer.

 

[dndrich]

No, no chance of moving out. I'm a lifer here for sure.

A lifer who is soon to be a LEAFer.

Good chance of it!

 

[Kansaisupra]

Probably one last factor is the carpool lane sticker expires, Jan 1st 2015.
Who knows what carpool, HOT, HOV rules will be in place in 3 years.

 

[surfingslovak]

Probably one last factor is the carpool lane sticker expires, Jan 1st 2015.
Who knows what carpool, HOT, HOV rules will be in place in 3 years.

That's a fair concern, but an extension until 2018 is apparently already in the works in California.

 

[BlackMagic]

One of the other big factors to consider is that in N years, the federal tax program (and CA program) will likely not be in place, thus securing your partially government paid Leaf a longer life. For me, the CA rebate made the total price the same as the (lower) 2 year lease w/o CA tax rebate.