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Re: Leaf or Prius?

Posted: Tue May 30, 2017 9:34 pm
by TreeStar
ByeFO wrote:
TreeStar wrote:I've been researching the 2017 versions of these cars quite a bit lately. The Leaf has absolutely amazing rebates right now. To the tune of $15,000+. Anyone know why that is?
How much of that figure is from Nissan? Maybe the incentives are regional. Can you say where you are located?

I looked at Nissan USA for my area and the best I could do from Nissan was $4,000 and that is if it is financed through NMAC (Nissan financed).
All of it..... $15,350 in rebates right off the top. Well, $2,000 in discount, $13,350 in rebates. They keep the tax credit. This is not a factor with how much I put down on it. Glastone Nissan. I forgot what they changed the name to. A guy's name. Dick Hannah?


After thinking about this more, it seems as if I should put less down if I don't plan on keeping the car. As this sits now (until the end of the month... oh, it's over. Not sure what will happen with incentives next month) but putting $6k down and $104.27 month and the car can be financed for $11,395.

Re: Leaf or Prius?

Posted: Tue May 30, 2017 10:35 pm
by cwerdna
TreeStar wrote: After thinking about this more, it seems as if I should put less down if I don't plan on keeping the car.
If you are leasing, put $0 down. Sure, your monthly payments will be higher and you will pay a little more in interest over the life of the lease, but if you total the car, you get none of your payments nor the down payment back. It's not worth the risk.

You should NEVER be comparing leases only by monthly payment. Look at the total cost of the lease over its entire life, including all taxes, fees, etc.

Re: Leaf or Prius?

Posted: Wed May 31, 2017 6:39 am
by TreeStar
cwerdna wrote:
TreeStar wrote: After thinking about this more, it seems as if I should put less down if I don't plan on keeping the car.
If you are leasing, put $0 down. Sure, your monthly payments will be higher and you will pay a little more in interest over the life of the lease, but if you total the car, you get none of your payments nor the down payment back. It's not worth the risk.

You should NEVER be comparing leases only by monthly payment. Look at the total cost of the lease over its entire life, including all taxes, fees, etc.

Good advice. It seems with a case of so much incentive, long term options should be heavily considered.

I was going to have them do my paperwork over with less down. I'm really wanting under $200 /month.

Re: Leaf or Prius?

Posted: Wed May 31, 2017 10:28 am
by cwerdna
TreeStar wrote: I was going to have them do my paperwork over with less down. I'm really wanting under $200 /month.
Less down on a lease should be $0 down. It is not worth the risk to have a "feel good" low monthly payment.

Put aside that former down payment $ somewhere and start paying monthly payments out of that first.
TreeStar wrote:The residual value (Nissan wholesale price) will be $8,714 after the lease.
No. That is the residual value. That's the agreed upon price for which you can pay to buy out the car at lease end. That may be higher or lower than the car's actual value at the end of lease.

If the residual's too high vs. market value, Nissan/NMAC may offer discounts or you may be able to get your buyout price lower. If not, then too many cars will get returned at end of lease, flooding the market, depressing their value.

http://www.mynissanleaf.com/viewtopic.p ... 78#p494478 was my situation when my 2 year lease ended in July 2015. The process has changed w/NMAC vs. dealers now near/at lease end.

I mentioned how much my former '13 SV w/both packages sold for at auction at http://www.mynissanleaf.com/viewtopic.p ... 07#p436707 and http://www.mynissanleaf.com/viewtopic.p ... 24#p435924. Obviously, Nissan/NMAC was WAY off on residual value. It may have been intentional given that a high residual == cheaper lease to the customer.

If the residual's lower than market value, you win. You can buy the car for the residual then turn around and sell it for more $ than you paid to buy it.

Re: Leaf or Prius?

Posted: Wed May 31, 2017 6:10 pm
by SageBrush
cwerdna wrote:[Obviously, Nissan/NMAC was WAY off on residual value. It may have been intentional given that a high residual == cheaper lease to the customer.
In the olde tdays the residual value (RV) was the manufacturer's best guess at auction value; today is is just a marketing ploy to set the monthly payment at a value the market will bear. And as you point out in the case of the LEAF, Nissan has been losing money hand over fist at lease end.

Re: Leaf or Prius?

Posted: Sat Jun 03, 2017 2:47 pm
by TreeStar
cwerdna wrote:
TreeStar wrote: I was going to have them do my paperwork over with less down. I'm really wanting under $200 /month.
Less down on a lease should be $0 down. It is not worth the risk to have a "feel good" low monthly payment.

Put aside that former down payment $ somewhere and start paying monthly payments out of that first.
TreeStar wrote:The residual value (Nissan wholesale price) will be $8,714 after the lease.
No. That is the residual value. That's the agreed upon price for which you can pay to buy out the car at lease end. That may be higher or lower than the car's actual value at the end of lease.
You're saying to take my down payment money and hold on to it to use as monthly payments on the car? As in risk you mean if I wreck the thing?

So if I put $2,000 down my monthly payment would be around $270.

It seems as if most of my concerns are concerns that would be there with buying/leasing any car. The electric part took some coming to terms with, but I think I'm good on that. Especially after hearing the encouraging things here in regard to the area I live in with having an EV.

Re: Leaf or Prius?

Posted: Sat Jun 03, 2017 2:53 pm
by LeftieBiker
The only reason to put any money down on a lease is to get a lower money factor (interest rate) or lower total cost of lease (fees waved or lowered). All other things being equal, put zero down as suggested. If putting some money down will get you a better deal (not just a lower payment) then only put down as much as you are willing to risk losing if the car is totaled.

Re: Leaf or Prius?

Posted: Sat Jun 03, 2017 3:17 pm
by TreeStar
LeftieBiker wrote:The only reason to put any money down on a lease is to get a lower money factor (interest rate) or lower total cost of lease (fees waved or lowered). All other things being equal, put zero down as suggested. If putting some money down will get you a better deal (not just a lower payment) then only put down as much as you are willing to risk losing if the car is totaled.
My reason is to have a lower monthly payment.

I'm not really a guy who needs to have fancy things and this car might be a tad much for me, but with the job I'm planning on getting it's affordable. I've considered just buying a used car and owning it, but then there's the factor of it breaking/costing money/time away from work to fix. Having a newer car is a form of insurance. An older car is going to depreciate as well so that's part of the "expense". So perhaps it is in my best interest to get a new car that's extremely "fuel efficient". My vehicle expense will be fairly low.

I still might even buy it when the lease is over.

Re: Leaf or Prius?

Posted: Sat Jun 03, 2017 3:18 pm
by cwerdna
TreeStar wrote: You're saying to take my down payment money and hold on to it to use as monthly payments on the car? As in risk you mean if I wreck the thing?

So if I put $2,000 down my monthly payment would be around $270.

It seems as if most of my concerns are concerns that would be there with buying/leasing any car.
Yes.

If you wreck the car the day you leave the dealer w/the car, you are out $2K. You won't get it back. If you put $0 down and wreck it before the 1st monthly payment's due, you aren't out anything. After 1st month's payment, you'd be out either $2,270 in case 1 or whatever the 1st monthly payment is in case 2 (let's call it $325).

Yes, this whole thing about putting little to nothing down on lease is not EV specific.

Re: Leaf or Prius?

Posted: Sat Jun 03, 2017 3:23 pm
by cwerdna
TreeStar wrote: My reason is to have a lower monthly payment.
Why? Is it for a psychological "feel good" lower monthly payment? Don't do that. It's not worth the risk.

If you put $ down, you still have come up with that $ upfront. As I said, instead put that $ away in savings, CD, etc. and do NOT withdraw anything from it except to pay the monthly payments on the car.

But yes, as I said, you will pay a little less over the life of the lease if you put $ down, due less in total interest costs over the life of the lease.