One Benefit of Rapid Depreciation

[golfcart]

I know some folks are upset about the rapid depreciation of new leafs, and understandably so if you ever total it or need to unload it. However, I have found an upside for people that intend to keep it for a while.

Where I live we have personal property tax on our vehicles based on the assessed value. My assessment on my 2015 S was only $11,700 this year which saved me about $250 on my PPT compared to last year when my car was assessed at $23,500. That's not chump change.

 

[redLEAF]

I know some folks are upset about the rapid depreciation of new leafs, and understandably so if you ever total it or need to unload it. However, I have found an upside for people that intend to keep it for a while.

Where I live we have personal property tax on our vehicles based on the assessed value. My assessment on my 2015 S was only $11,700 this year which saved me about $250 on my PPT compared to last year when my car was assessed at $23,500. That's not chump change.

I know of a number of other states that use this approach as well; lived in NH years back and they still do it; not so here in IL (EV plate registration is only $18/yr; taxes on the car are a one-time thing but they do deduct your trade-in). As with any car that depreciates this fast, you should also see your car insurance rates to go down a bit but the flip side is if they total it and you might not get enough to find a suitable replacement but as others have said, the used resale market is pretty low so who knows.

 

[golfcart]

I know of a number of other states that use this approach as well; lived in NH years back and they still do it; not so here in IL (EV plate registration is only $18/yr; taxes on the car are a one-time thing but they do deduct your trade-in).

The personal property tax can be a big expense for folks that drive (or lease) newer more expensive cars. This is my first car that is less than 10 years old and I definitely do not like getting that bill every year. But then again it is just how the city decides to spread out the tax burden, it keeps our real estate taxes lower and nobody is forced to drive a shiny expensive new car it is kind of a luxury to do so.

Virginia is kind of interesting with EV's. We can pay $25 a year for a "special fuel vehicle" plate that lets us get in the HOV any time. The power company also offers a time of use plan where we can charge between 1-5am for about 5c/kWh which is really nice for folks like me that put 15,000 miles a year on the car due to a 50 miles round trip commute.

We also pay a $64 a year electric vehicle fee to make up for the gas tax we don't pay. I lot of folks grumbled about that but I don't have a problem with it since the state finances a lot of its road maintenance through the gas tax and I use the roads just like everyone else. I ran the numbers and it comes out as if I drove a car getting 45mpg over 15000 miles which seems reasonable.

 

[ENIAC]

Yep, new cars depreciate. Here's the list of the top 10 for 2016. http://www.cheatsheet.com/automobiles/dont-plan-on-reselling-these-10-cars-depreciate-fast.html/?a=viewall (LEAF didn't make the list)

 

[Marktm]

Being a "renewables" enthusiast, for the last 5 years I've wanted an excuse to buy a pure EV. Living in the expansive Houston, TX area, it just never made any sense to spend $20K plus for a vehicle ONLY for commuting/suburban run-around. As a result of the Leaf's depreciation (an auction of a returned lease vehicle), I was able to afford a lightly used one for just those purposes.

The Leaf has been a great "ambassador" for EV's. My Grandson has a driver's learners permit and wants to drive it everywhere (as do I). People at work go to lunch in it and the "wheels turn" about buying a commuter EV.

So, possibly the secondary/depreciated EV market will boost the sales of the next generation of EVs?? I hope so.

 

[golfcart]

Yep, new cars depreciate. Here's the list of the top 10 for 2016. http://www.cheatsheet.com/automobiles/dont-plan-on-reselling-these-10-cars-depreciate-fast.html/?a=viewall (LEAF didn't make the list)

Thanks for the relevant contribution to the thread... I will forward this thread to the city of Virginia Beach and let them know that they made a mistake in dropping my assessment from $23,500 to $11,700 (50% drop) because that would contradict the link you posted which didn't include the Nissan Leaf. LOL

 

[golfcart]

Being a "renewables" enthusiast, for the last 5 years I've wanted an excuse to buy a pure EV. Living in the expansive Houston, TX area, it just never made any sense to spend $20K plus for a vehicle ONLY for commuting/suburban run-around. As a result of the Leaf's depreciation (an auction of a returned lease vehicle), I was able to afford a lightly used one for just those purposes.

The Leaf has been a great "ambassador" for EV's. My Grandson has a driver's learners permit and wants to drive it everywhere (as do I). People at work go to lunch in it and the "wheels turn" about buying a commuter EV.

So, possibly the secondary/depreciated EV market will boost the sales of the next generation of EVs?? I hope so.

Yeah, it is definitely a plus. I think most 2 car households should consider a used leaf as a commuter... if they weren't giving away 2015's at the end of last year I would have gotten a used one myself.

 

[jjeff]

I know some folks are upset about the rapid depreciation of new leafs, and understandably so if you ever total it or need to unload it. However, I have found an upside for people that intend to keep it for a while.

Where I live we have personal property tax on our vehicles based on the assessed value. My assessment on my 2015 S was only $11,700 this year which saved me about $250 on my PPT compared to last year when my car was assessed at $23,500. That's not chump change.

When I purchased my "new" 2013 Leaf S in 6/14 the license plates were $400(probably based on the sticker price, not the$25.2K I paid(before $7500 govt. rebate)). This year my tabs are $271 basing it off a "base value" of $29,650(I believe this means what they think the car originally sold for....). IMO the $271 is way high for a car thats probably valued at $12k?? My recently purchased '12SL (for $7500 but an original sticker price of ~$38k) had plates for $319.
My state is supposed to mostly base tabs/plates fee off the vehicles assessed value......my guess is they have a canned depreciation rate per year(up to 10 years at which point it's the minimum fee of ~$60 regardless of value) I think I'll try and call the state tomorrow to see the specifics. Unlike the OP it seems I'm getting screwed(or not saving anything) by the fact that my Leaf's are depreciating so fast :x

 

[golfcart]

When I purchased my "new" 2013 Leaf S in 6/14 the license plates were $400(probably based on the sticker price, not the$25.2K I paid(before $7500 govt. rebate)). This year my tabs are $271 basing it off a "base value" of $29,650(I believe this means what they think the car originally sold for....). IMO the $271 is way high for a car thats probably valued at $12k?? My recently purchased '12SL (for $7500 but an original sticker price of ~$38k) had plates for $319.
My state is supposed to mostly base tabs/plates fee off the vehicles assessed value......my guess is they have a canned depreciation rate per year(up to 10 years at which point it's the minimum fee of ~$60 regardless of value) I think I'll try and call the state tomorrow to see the specifics. Unlike the OP it seems I'm getting screwed(or not saving anything) by the fact that my Leaf's are depreciating so fast :x

That does sound suspect, I know Virginia Beach bases the assessed value of a vehicle on the loan value from the January National Auto Dealers Association (NADA) book. So it is something you can look up and then use their online calculator to verify. It might be worth looking into and following up with them.

 

[Staque]

I have been thinking about taking advantage of the depreciation by buying another Leaf.

 

[mwalsh]

The biggest problem I have with LEAF depreciation is when to make the decision over dropping comprehensive insurance coverage and going with liability only instead. It's hard to pony up over $1000 a year to insure a car that's only worth $6-7000, but then I also don't want to be without a car should mine get written-off due to any negligence on my part (unlikely, but you never know).

It's an even harder decision now I have a fresh battery pack - that would almost be like loosing a new car and only being able to afford a piece of crap to replace it!

 

[DuncanCunningham]

. It's hard to pony up over $1000 a year to insure a car that's only worth $6-7000,

I'm paying $40 per month for our 2015 and about $37 for our 2012. We have our insurance on 6 month cycles, 1 payment in full (so they can jack up the rates more often I guess).

I suggest you shop around for insurance if you are paying $1000 per year for 1 Leaf.

 

[ENIAC]

I have been thinking about taking advantage of the depreciation by buying another Leaf.

Same here. I've been looking at online LEAF listings. However, it seems like the best deals are outside of SoCal. Look at CarFax I see dealers are buying at auctions in GA and throughout the east then shipping the LEAF back to SoCal to sell. Sort of a LEAF arbitrage scheme.

 

[Marktm]

When I bought my used Leaf in Texas, the used car dealer actually told me that the local availability was dropping because Cal dealers were buying and shipping the Leafs to California. Of course, he was interested in making a sale!

 

[jjeff]

I posted this in a thread several weeks ago but in my area anyway, used Leafs have all but dried up When I purchased my '12 a local dealer had tens of used Leafs, in almost every color and cheap($7.5k for my '12 SL missing 2 bars). In the last month or more if I see one it's generally $3-4K more than I paid :shock: Note my '12 came from So Cal(LA) I guess it makes a lot of sense if CA is starting to bid on the used Leafs now that the glut seems to be gone and they aren't making it to my local dealers.

 

[mwalsh]

. It's hard to pony up over $1000 a year to insure a car that's only worth $6-7000,

I'm paying $40 per month for our 2015 and about $37 for our 2012. We have our insurance on 6 month cycles, 1 payment in full (so they can jack up the rates more often I guess).

I suggest you shop around for insurance if you are paying $1000 per year for 1 Leaf.

UT and SoCal would appear to be different animals. I did shop around this time and all the rates were similar. Too similar to chance going from excellent AAA coverage to dodgy coverage from a company I'd never heard of.

 

[ENIAC]

I posted this in a thread several weeks ago but in my area anyway, used Leafs have all but dried up When I purchased my '12 a local dealer had tens of used Leafs, in almost every color and cheap($7.5k for my '12 SL missing 2 bars). In the last month or more if I see one it's generally $3-4K more than I paid :shock: Note my '12 came from So Cal(LA) I guess it makes a lot of sense if CA is starting to bid on the used Leafs now that the glut seems to be gone and they aren't making it to my local dealers.

Wow, you're right - there are only a handful of used LEAFs presently available in your area. A 2012 with 27K miles is listed for $15,900.

 

[golfcart]

There's a 9 bar 2012 SL down here that's been on craigslist almost 3 weeks for $7999. Military owner leaving the country and I'd have 17k miles and probably a year to kill that last bar and get a new battery. I bet I could get it for $7k...

https://norfolk.craigslist.org/cto/5557228512.html

My buddy is an independent dealer down here, he sees ones like this going for $5500 at auction all the time. Maybe he needs to start buying them and sending them out west if they are selling for so much out there.

Although if this site is any indication, there is still a glut in most of the country

http://www.offleaseonly.com/mobile/pages/inventory/browse.asp?param_type=used&param_make=Nissan&param_model=LEAF

 

[ENIAC]

Reviewing the CarFax reports, it appears there are a bunch of 2014 LEAFs coming off lease in Georgia. These LEAFs are now hitting the auctions and depressing the market in the south east. GA had a $5K tax credit until last July. That $5K plus the federal $7.5K drove a lot of GA LEAF leases. Perhaps Nissan should manage this situation and distribute the LEAFs they receive off-lease to metro areas around the country instead of letting them overwhelm demand in a single area.