December 2010 Lease VS Purchase

[pksd1]

I would prefer to write a Leaf purchase contract before installing the charger. That way I know exactly how much I am paying for the car. Do not want to see or pay for dealer mark-ups above MSRP.

There is no guarantee that dealer would let us walk out paying MSRP.

Also I would like to test drive the car before installing the charger.

 

[LTLFTcomposite]

Do not want to see or pay for dealer mark-ups above MSRP.

There is no guarantee that dealer would let us walk out paying MSRP.

Are you OK with an $895 "dealer service fee"?

"We have to prep the car, and there is a lot of paperwork to do. We're making less than $100 on every one of these we sell!"

 

[pksd1]

Do not want to see or pay for dealer mark-ups above MSRP.

There is no guarantee that dealer would let us walk out paying MSRP.

Are you OK with an $895 "dealer service fee"?

"We have to prep the car, and there is a lot of paperwork to do. We're making less than $100 on every one of these we sell!"

Almost $1000 is lot of money for prepping the car. Also I do not believe dealers are making less than $100 per car they sell.

 

[LTLFTcomposite]

Almost $1000 is lot of money for prepping the car. Also I do not believe dealers are making less than $100 per car they sell.

Well, that's what the salesman told me ;-)

 

[garygid]

Well, the sales people are not required to be informed, or tell the truth.

 

[evnow]

Does anyone know here whether the dealers can change the lease contract ? I'm thinking of prepaying all the installments upfront - so that I don't have to pay sales tax. The exemption expires this year. That should save me some interest as well.

 

[derekjsmith]

Does anyone know here whether the dealers can change the lease contract ? I'm thinking of prepaying all the installments upfront - so that I don't have to pay sales tax. The exemption expires this year. That should save me some interest as well.

I was thinking of doing the same thing but I’m not sure if Gregoire will let us prepay leases payments to avoid sales tax. I have read all paperwork on the sales tax break and it does not have a case for this use.

 

[evnow]

I was thinking of doing the same thing but I’m not sure if Gregoire will let us prepay leases payments to avoid sales tax. I have read all paperwork on the sales tax break and it does not have a case for this use.

http://www.nissanusa.com/ev/media/pdf/incentives/nissan-leaf-incentive-54.pdf

(9) Leases. A vehicle is exempt from retail sales and use taxes on a lease if the other
requirements are met. If the vehicle is new, registered, and titled in the lessee's name
between January 1, 2009, and December 31, 2010, the retail sales tax exemption will apply
only to amounts due between January 1, 2009, and December 31, 2010. See also WAC 458-
20-103 and 458-20-235.
(a) Example 1. Alex leases a new hybrid vehicle that he registers and titles on December
8, 2008. None of his lease payments will qualify for the exemptions because the vehicle was
registered and titled prior to January 1, 2009.
(b) Example 2. Beth leases a new hybrid vehicle that she registers and titles on
December 8, 2010. Assuming that the other requirements of the exemptions are met, any
amounts due under the lease before January 1, 2011, are exempt from retail sales tax.

BTW, were you offerred the free charger ?

 

[derekjsmith]

If the vehicle is new, registered, and titled in the lessee's name
between January 1, 2009, and December 31, 2010, the retail sales tax exemption will apply
only to amounts due between January 1, 2009, and December 31, 2010.

This is the example that is not clear. As a lease prepay those amounts where not due until after Jan 1st 2011. But if we just place a larger down payment to have the lease payments at near zero then I think that will work.

Yes I was offered and applied for the EV Project charger, have not heard back other than the letter saying they got my application.

 

[evnow]

This is the example that is not clear. As a lease prepay those amounts where not due until after Jan 1st 2011. But if we just place a larger down payment to have the lease payments at near zero then I think that will work.

I don't know whether a monthly lease payment is a neccessity for any lease. But that is possible ...

 

[garygid]

If the monthly payments are required, possibly $1 per month for 36 months would work?

 

[evnow]

If the monthly payments are required, possibly $1 per month for 36 months would work?

I emailed my dealer about this. I'll post when they reply.

 

[Bicster]

Note that a dealer can sell you any car they have for less than "invoice", and still make money. Even after prep and all that other crap.

 

[redLEAF]

On this whole lease versus purchase and rebates; been researching for IL as you pay sales tax on the entire sales price of the car not just the portion for lease payments; which means if you decide to purchase it after the lease is up; you're paying taxes twice but that's another story (terrible law, but state needs its money!). So anyway, on the Nissan LEAF site it did have a listing for IL EV incentives, through some more searches I came up with:

"Some of the incentives will require interpretation. For example, Illinois promises a $1,000 state rebate to buyers of electric vehicles. But it also offers a rebate of up to $4,000 to cover the "incremental" difference in the cost of an electric vehicle compared with a traditional car, according to the Alternative Fuels site.

The rebate assumes electric vehicles cost far more than gasoline-powered vehicles. But Nissan has priced the Leaf to compete with regular family sedans, which could negate an incremental rebate.

Nissan officials have been urging various states to update their incentive packages to reflect Nissan's pricing plan. "Nissan obviously doesn't want to be penalized for bringing our car in at a competitive price," Perry says."

Link to the entire article:

http://www.autonews.com/apps/pbcs.d.../RETAIL03/304199977/1316/mobile&template=art4

Hopefully it will get resolved so IL LEAF buyers would get the $7,500 plus as much as $4,000 and it could apply to either an outright purchase or lease as that's how IL lease law works today ... at the very least the state will add a $1,000 incentive and when combined with lower registration costs for EV's, could be a decent enough incentive to drive more purchases.

 

[Bicster]

For the Texans here:

In Texas, lessees pay sales tax (6.25%) on the full price of the vehicle, but if they purchase the vehicle at the end of the lease, there's no additional sales tax.

A trade-in on the lease can also bring down the taxable amount.

Also, if you live in the Dallas area, there are some EV rebates that may be applicable.

 

[palmermd]

Note that a dealer can sell you any car they have for less than "invoice", and still make money. Even after prep and all that other crap.

Then it was not really an invoice now was it? Sounds like they showed a piece of paper that they made up. They most definitely cannot sell a car for less than an invoice they received from the manufacturer. I would not work with a dealer that says they can sell cars for less than their invoice. It is a sure sign that they are manipulating something and not worthy of my business.

 

[Bicster]

Then it was not really an invoice now was it? Sounds like they showed a piece of paper that they made up. They most definitely cannot sell a car for less than an invoice they received from the manufacturer. I would not work with a dealer that says they can sell cars for less than their invoice. It is a sure sign that they are manipulating something and not worthy of my business.

Sure they can. They get money back from the manufacturer later.

http://www.edmunds.com/advice/incentives/holdback/index.html

 

[EVDRIVER]

Then it was not really an invoice now was it? Sounds like they showed a piece of paper that they made up. They most definitely cannot sell a car for less than an invoice they received from the manufacturer. I would not work with a dealer that says they can sell cars for less than their invoice. It is a sure sign that they are manipulating something and not worthy of my business.

Sure they can. They get money back from the manufacturer later.

http://www.edmunds.com/advice/incentives/holdback/index.html

They sell under invoice all the time and it is easy to find the invoice price and all the dealer hold backs.

 

[evnow]

Ofcource, chances of anyone selling Leaf under invoice price (in the beginning atleast) is very low. I guess that can happen only if even the initial demand is very small - which I hope is not the case !

BTW, it seems the dealer margin on Leaf is very low - so there may not be a big diff between invoice & MSRP.

 

[LEAFfan]

Ofcource, chances of anyone selling Leaf under invoice price (in the beginning atleast) is very low. I guess that can happen only if even the initial demand is very small - which I hope is not the case !

BTW, it seems the dealer margin on Leaf is very low - so there may not be a big diff between invoice & MSRP.

Ya, I read somewhere where a dealer said they will only make about $100 on a LEAF...but I find that hard to believe. Although I do know they make more money on a used car than a new one.