Early buyout

[jms]

I was wondering what the Nissan lease early buyout option is.
Here's my situation: Not enough tax to take advantage of the full $7500, but PA charges an extra 3% on lease payments to help fund mass transit. So I would need to do a short term lease to get the $7500 upfront and then convert to a sale to dump the extra 3% sales tax. I would like to know if it is a possibility and if so what the costs associated would be in order to make a full and fair comparison.

Thanks in advance.

 

[JustinC]

Why wouldn't you just buy it and get the $7500 yourself as a tax credit?

 

[thankyouOB]

you have a 401k or an IRA, move money to your ROTH = instant income and pay the tax with the rebate.

 

[EVDRIVER]

you have a 401k or an IRA, move money to your ROTH = instant income and pay the tax with the rebate.

I did that.: Tax free interest on .00000000000000000000000% :lol: :lol: :lol:

 

[LakeLeaf]

Why wouldn't you just buy it and get the $7500 yourself as a tax credit?

I think if you buy it - you have to come up with the $7500 yourself and then wait for the federal check to arrive. By leasing it first, then buying out the lease, the $7500 is already built in, and you need to come up with that much less cash to purchase. I'd assume this is the OP's thought process.

 

[DaveinOlyWA]

you can do it. some report here that you must carry the lease for 90 days first. but if you call NMAC one of the automated options in their menu is to get the pay off amount of the lease.

when you lease, your payments consist of two charges

1)depreciation or the value of "loan" reduced from residual this is essentially the amount of the principle reduced each month

2)rent charge....interest if you will

these two values are determined at the time of the lease and you pay these fees off in 35 equal payments unlike P&I where the amount of the two seesaw past each other as the loan is paid

so each payment you make on the lease reduces the buyout cost by depreciation/35.

 

[HighDesertDriver]

I was wondering what the Nissan lease early buyout option is.
Here's my situation: Not enough tax to take advantage of the full $7500, but PA charges an extra 3% on lease payments to help fund mass transit. So I would need to do a short term lease to get the $7500 upfront and then convert to a sale to dump the extra 3% sales tax. I would like to know if it is a possibility and if so what the costs associated would be in order to make a full and fair comparison.

You can do it. We were in the same position as you and leased to max out the recoverable portion of the $7500. We are now in the process of buying out the lease.

Go to the forum thread with the leasing spreadsheets (http://www.mynissanleaf.com/viewtopic.php?f=23&t=1067" onclick="window.open(this.href);return false and you will see an entry for "acquisition fee." This amount, plus 3 months of the extra PA 3% sales tax and higher NMAC interest rate (aka, "money factor") are what you will give up leasing instead of immediately buying. On the plus side, a leasing customer gets the immediate benefit of the $7500 while a buyer will not see that benefit until they actually file their tax return. You will not have to repay the $7500 and then claim it on your taxes if you buy out the lease; as the original buyer, NMAC will have that responsibility.

 

[jms]

Thanks - We couldn't take the whole credit due to business losses, and it doesn't roll over so .... but it's good to know.