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Frequent Contributor
Posts: 250
Registered: ‎11-11-2007
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Auto Trickery

So I was researching a 2017 nissan leaf and came across a dealership offering an SV model for 19k.  The internet person even sent me the listing and said this is my advertised price.  So I take it to the dealership and test drive, not bad ride.  I read all the fine print with a magnifying glass before I got there to see what was really to this. After a test drive, we now talk money figures.  He says by the way, that advertised price included a $7500 tax break which you claim at the end of the year.  So the deal was, 10k off MSRP of 34k or so which dosen't sound bad and could maybe eat up some negative equity but then I researched and saw that this vehicle can drop up to 12k in value the first year if not more!  Needless to say, I walked away!  It's the old saying,  If it sounds to good to be true, it's not true!

Regular Contributor
Posts: 240
Registered: ‎06-21-2017

Re: Auto Trickery

The precipitous drop in short term value for electrics is due to slight long term battery degredation and the reality that the used market bakes in the tax credit to the depreciation figure. Without the tax credit, depreciation is only 4.5k; a pretty palatable figure. Most electric drivers are leasing at this point which lets the leasing company deal with the tax credits, depreciation, battery degredation, and lets the driver step up to newer technology at the lease expiration.


Gardening from 10/1/2017 to 4/1/2018.
Frequent Contributor
Posts: 250
Registered: ‎11-11-2007
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Re: Auto Trickery

So may be better to lease this type vehicle?

Regular Contributor
Posts: 240
Registered: ‎06-21-2017
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Re: Auto Trickery

I would only lease a battery electric vehicle, but you would need to do a Total Cost of Ownership comparison for lease vs. buy to make a decision. From a simplified perspective, compare the cost to keep the Leaf for 6 years if you buy and to go through 2x3 year lease terms. I'm willing to bet that the lease comes out cheaper and provides a significantly better experience over the 6 year period.


Gardening from 10/1/2017 to 4/1/2018.
Member
Posts: 11
Registered: ‎01-17-2017
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Re: Auto Trickery

I told you this in a previous post. 

Frequent Contributor
Posts: 250
Registered: ‎11-11-2007
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Re: Auto Trickery

I don't recall but sorry if you came by and wasted your post again, bottom line I walked away and it cost me an inquiry.  Now at the last day of the month, the dealer has been calling constantly.  Electric cars as stated looses too much value for me and I'm not good at even keeping my cell phone charged!!  Smiley Happy

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Valued Contributor
Posts: 1,616
Registered: ‎12-16-2014
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Re: Auto Trickery

Not a chance would I buy a Nissan Leaf, Nissan is having a terrible time selling them and they deprecite more than any car sold (that I know of at least).  A car with a 40k MSRP sells for 12k 2 years and 12,000 miles later.  Better to buy one used or just lease one and let them take the depreciation risk.  If you buy you will be upside down immediately desipite the discounts and incentives.  Generally you can lease one of these for about 200 a month.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698

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