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evnow
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:27 pm

xtremeflyer wrote:Exactly and I did the math in another thread, but if you put $4000 down to save .0049 money factor, you'd save $1080 over the life of a 3 year lease, but if you put that $4000 into a 3-yr CD, you'd only make $250 and have to pay income taxes on it. So it's almost a 25% return on your money.
Here are the rates - so let us say $4K takes you from Tier 4 to Tier 0. That is a saving of 0.0023 MF. That would save you some $500. But if you go only 1 Tier up - it is a saving of 0.0002 (or $50) and won't be useful.
Tier 0 — 0.00204 (credit score Above 740) i.e. 4.9%
Tier 1 — 0.00224 (credit score 700-739)
Tier 2 — 0.00264 (credit score 660-699)
Tier 3 — 0.00369 (credit score 620-659)
Tier 4 — 0.00454 (credit score 600-619)
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xtremeflyer
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:37 pm

evnow wrote:
xtremeflyer wrote:Exactly and I did the math in another thread, but if you put $4000 down to save .0007 money factor, you'd save $1080 over the life of a 3 year lease, but if you put that $4000 into a 3-yr CD, you'd only make $250 and have to pay income taxes on it. So it's almost a 25% return on your money.
Here are the rates - so let us say $4K takes you from Tier 4 to Tier 0. That is a saving of 0.0023 MF. That would save you some $500. But if you go only 1 Tier up - it is a saving of 0.0002 (or $50) and won't be useful.
I guess I'm not explaining how it works (I was only really interested in if NMAC does it), but adding security deposits has nothing to do with changing tiers. A security deposit is equal to 1 months payment, to the nearest $50. So if a payment is going to be $370, the sercurity deposit would be $400. Most leasing companies allow you to give Multiple Security Deposits (MSD) up to 7 times (Including Infiniti Finance, but I still can't find if NMAC does it). Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment. At the end of the lease, you'd get your entire $2800 back (minus damages) and as Boomer explained, it is not subject to loss in case of a total loss of vehicle in an accident, meaning you are better off putting the money towards the security deposit than you are towards the down payment.
Last edited by xtremeflyer on Tue Oct 05, 2010 1:11 pm, edited 2 times in total.

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evnow
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:48 pm

xtremeflyer wrote:Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00155 (3.7%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment.
So, I could potentially put $8K deposit and get zero money factor ? That should save about $100 a month or $3,600 over 3 years.
1st Leaf : 2/28/2011 to 5/6/2013
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IBELEAF
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:53 pm

This is some interesting information and since I never leased before I am trying to catch up here. Can someone please sum this up once we have definite answers?
Currently: '12 Volt (12k) since 7/2012
Previously: '11 Leaf SL (w/ 12k miles & 16 month ownership)

DaveinOlyWA
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:54 pm

hmmm. i think i need more clarification on how the lease works...then again, maybe i need a LOT more clarification.

i had intended to put $10,000 down when i purchased the car. if i cannot get reasonable financing. i think i will lease and i plan to purchase anyway, so will probably put the same down minus any of the processing fees involved, but...

i have to agree with evnow; some of the information does not seem to jive. and not sure why an additional downpayment would change the interest on the lease unless the residual would not change no matter what??
2011 SL; 44,598 mi, 87% SOH. 2013 S; 44,840 mi, 91% SOH. 2016 S30; 29,413 mi, 99% SOH. 2018 S; 25,185 mi, SOH 92.23%. 2019 S Plus; 14,342.8 mi, 93.16% SOH
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wwhitney
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 12:58 pm

evnow wrote:
wwhitney wrote: What is the acquisition fee, when is it paid, and if it paid up front, is it included in the down payment?
Extra payment in the beginning.
OK, so the upfront costs are the down payment ($1,999) and the acquisition fee. The sales tax is paid on each lease payment. What happens to the title and registration and doc fees that you would have to pay if you bought the car? Are there any other upfront fees?

Thanks, Wayne

xtremeflyer
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 1:09 pm

evnow wrote:
xtremeflyer wrote:Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..

Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment.
So, I could potentially put $8K deposit and get zero money factor ? That should save about $100 a month or $3,600 over 3 years.
Unfortunately no, most Leasing companies cap it at 7 deposits or a .0007 reduction. (note above, I put the new money factor would be .00155, it should be .00134)

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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 1:18 pm

xtremeflyer wrote: I guess I'm not explaining how it works (I was only really interested in if NMAC does it), but adding security deposits has nothing to do with changing tiers. A security deposit is equal to 1 months payment, to the nearest $50. So if a payment is going to be $370, the sercurity deposit would be $400. Most leasing companies allow you to give Multiple Security Deposits (MSD) up to 7 times (Including Infiniti Finance, but I still can't find if NMAC does it). Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..
Thanks for explaining this -- very helpful! If anyone knows the NMAC rules, please post.

Is this something we should start working out with the selected dealers now (after placing the order), or is this something best done on delivery day with the Finance person at the dealership?

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evnow
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 1:22 pm

xtremeflyer wrote:Unfortunately no, most Leasing companies cap it at 7 deposits or a .0007 reduction. (note above, I put the new money factor would be .00155, it should be .00134)
Oh well ...

According to this (5 year old) NMAC doesn't allow MF reduction.

http://townhall-talk.edmunds.com/direct ... 394d/21056
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xtremeflyer
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Re: Nissan Leaf Leasing Information

Tue Oct 05, 2010 1:38 pm

Example:

Normal Lease: (SL, 36 mo, 15,000mi)
MSRP: $33720
Dest Charge: $820
Tax Rebate: $7500
Drive Off Costs: $2594 ($1999 + Acq $595)

Payments: MF .00204 (4.9%)
Depreciation: $311.83
Lease Fee: $83.51
Tax (8.75%): $34.59
Total Payment: $429.94

Total Cost: $18036.90 ($2594 + $429.94 x 35 + Disp Fee $395)

--------

Lease with Multiple Security Deposts (MSD): (SL, 36 mo, 15,000 mi)
MSRP: $33.720
Dest Charge: $820
Tax Rebate: $7500
Drive off Costs: $5744 ($1999 + Acq $595 + MSD $3150 ($450*7))

Payments: MF .00135 (3.2%)
Depreciation: $311.83
Lease Fee: $54.54
Tax (8.75%): $32.06
Total Payment: $398.43

Total Cost: $16,934.05 ($5744 + $398.43 x 35 + Disp Fee $395 - $3150 Depost Return)

Savings: $1102.85 on a $3150 investment = 35% return over 3 years (10.5% APY)

----------------------

Lease with Extra $3150 down: (SL, 36 mo, 15,000 mi)
MSRP: $33.720
Dest Charge: $820
Tax Rebate: $7500
Drive off Costs: $5744 ($1999 + Acq $595 + Extra $3150 down)

Payments: MF .00204 (4.9%)
Depreciation: $221.47
Lease Fee: $76.86
Tax (8.75%): $26.10
Total Payment: $324.44

Total Cost: $17494.40 ($5744 + $324.44 x 35 + Disp Fee $395)

So putting down the $3150 instead of MSDs costs you $500 more (but saves you $600 off the normal lease) and puts your money at greater risk in case of an accident.

Now, unfortunately I can't find anywhere that says if NMAC allows this or not, Infiniti Finance does (I did this on my old G35 Coupe). I have sent an email out to my dealer.

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