Lease vs cash vs finance?

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eyedrop

Active member
Joined
Sep 26, 2016
Messages
37
Location
Black Canyon City, AZ
I found a new 2020 SL Plus with 12 miles selling for an advertisement price of 32k. Dealer says I can get it for only $30k if I lease.

I told the salesman I drive a ton, 30k miles a year and he said leasing would still be a better option for me vs buying cash.

The dealer doesn’t know it yet, but I will ultimately be trading in my 2017 S550 for it, which is valued at $ 38k.

I plan on using the fed tax credit to its fullest extent.

How should I go about this purchase? Lease vs cash vs finance?

Thanks…
 
Generally, buying is the better route IF you can get the full Federal credit. If you can't, then leasing and then buying off lease is usually best. Just run the numbers for both scenarios. $2k in additional bonus cash is unimpressive, BTW. Typical lease deals on Leafs they want to move these days give you about $10k in bonus cash, applied to the down payment. Of course, the car is already discounted...
 
Thank you for your reply. My fear is leasing will cause me to exceed mileage allowance, which causes fees. And I’m not too familiar with releasing or residuals. But it seems leafs depreciate fast.

I’m the type to buy and use for 7-10 years. I would like lowest TCO total cost over that period. Even if it means paying more today.

I think maybe buying in my case is best? I wonder if there is even room to haggle?
 
Actually, it all depends on how long you plan on keeping it.

Which is to say, if you're planning on being the one to have it hauled off, long past its life expectancy, to its final rusting place, then buy. And don't finance any more than absolutely necessary.

If, on the other hand, you change cars more often than some people change their underwear, then by all means lease.
 
Lease mileage limits are meaningless if you buy the car when the lease ends. If you don't, then the overage charge can be thought of as a fee for having a choice whether to buy in a few years.
 
It seems to me that with leasing, you are betting the dealer will be wrong about the depreciation, in hopes you can buy the car for less than what it’s worth after the 3 years. Is that correct?

Seems again I’d rather not worry and just buy. More simple
 
If you get the full tax credit and can afford to buy, that's usually best if you are sure you want to keep the car. Leasing is for more complicated situations.
 
Make sure you have enough income to use the full tax credit also. Nothing burns more than the IRS telling you that only half or 3/4 of your tax credit can be applied to your filings... :evil:
 
LeftieBiker said:
SageBrush said:
If Prescott is hot Arizona, think twice about a LEAF

Certainly think twice about buying one, or leasing one with the intent to buy it.

Prescott is cooler than Phoenix. The 62 kWh battery in my 2019 SL Plus is doing fine after 21 months and 31k miles (still above 93% SOH) in Phoenix so I would not be too concerned about battery longevity in Prescott (especially with high annual mileage use). I recommend purchase for high mileage use if you are certain you can use the full tax credit. When you lease, Nissan Financial gets the tax credit and you hope they share it with you by discounting the lease payments.
 
When you lease, Nissan Financial gets the tax credit and you hope they share it with you by discounting the lease payments.

No. They provide it up front, as additional down payment, and you know exactly what you are getting from them before you sign the lease.
 
eyedrop said:
I found a new 2020 SL Plus with 12 miles selling for an advertisement price of 32k. Dealer says I can get it for only $30k if I lease.

I told the salesman I drive a ton, 30k miles a year and he said leasing would still be a better option for me vs buying cash.

The dealer doesn’t know it yet, but I will ultimately be trading in my 2017 S550 for it, which is valued at $ 38k.

I plan on using the fed tax credit to its fullest extent.

How should I go about this purchase? Lease vs cash vs finance?

Thanks…

Your post is a bit vague. The prices stated is your negotiated price? So you lease @ 30K this does or does not include your "cash" payment (which is the federal credit plus any Nissan cash?) or not?

The reason I ask is on a 2021, it would be a great deal. On a 2020, it would be an average deal. The purchase of 32k means another $7500 in tax credits should you have that much liability. These are things you need to clarify.

Otherwise, I would look at what your financing options are. Sounds like you can easily afford zero interest 72 month terms on a purchase. This I think would be your best bet. If lower payments are better for you, then do a lease to purchase. Instant fed credit means only slightly more total on payments but payments would be less.
 
eyedrop said:
I told the salesman I drive a ton, 30k miles a year and he said leasing would still be a better option for me vs buying cash.
This is why car salespeople are useful -- you know right off the bat what choice to avoid like the plague.
 
Well, I bought the car cash yesterday. The biggest driver in it was simplicity, as I never know what the future may be like financially, and don’t want to be stuck with any payments… And with no clear savings winner either way, I just ended up buying. I have lots of capital gains from selling TSLA so will be utilizing the credit fully. And to make things interesting, I now live in the hotter climate of AZ in Black Canyon City! My commute is 62 miles round trip so I should be good for awhile.

Thanks for all your help! Especially old friend gerryAZ! Long time no see!
 
eyedrop said:
Thanks for all your help! Especially old friend gerryAZ! Long time no see!
I wondered if that was you--I had to replace my phone and lost some of my contact numbers/emails. You will get you money's worth with your longer commute and you will really like the 62 kWh battery. It takes a little getting used to seeing the numbers on the GOM after a full charge and to see the range reduction of several miles (instead of 2 or 3 miles) when you turn on HVAC with a full charge.
 
SageBrush said:
eyedrop said:
I told the salesman I drive a ton, 30k miles a year and he said leasing would still be a better option for me vs buying cash.
This is why car salespeople are useful -- you know right off the bat what choice to avoid like the plague.

I'm still pissed at my dealer for writing a 5-year note (at a substantial per diem!) for what was intended to be a 30-day debt. (Exactly what part of "Balance on Net 30 terms" did they not understand?) And when I saw the per diem, it became about a 15-day debt.

The personal banker at Chase, who straightened out the auto loan people, and got them to stop sitting on my pink slip, agreed with me that writing a 5-year note for a 30-day debt was ludicrous.
 
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