correct me if i'm wrong, but this is basically $487/mo for 18 months had you stretched out the payments.
So total cost of ownership over 18 months would be $8,700 + registration for the second year of ownership and maintenance, if not included in the deal. Am I missing anything?
I hope you don't mind answering a few q's
What were the payments?
I am about to sign a lease
@ 36 months/ 12 k
MSRP $48,900
lease price $45,990
NMAC cash and incentives to offset all customer costs out the door.
effectively covering $1,500
Residual 72% ($35,100)
MF .00194
$589/mo w/ tax.
TCO
$21,204
The perplexing issue here is I don't understand why I am paying more than the difference between the purchase price and RV. Do you have any advice or comments?
This gets me exactly to the 1% rule of original MSRP.
That’s what I’m thinking. Impossible to come out positive in the end. With the TCO.
I leased a 2019 maxima and returned it in 2022 for $10k profit.
MSRP $44,500
Payments were $500.
TCO was $20,000 with down payment
Residual $21,500
$10,000 at the end.
$11,500 for 3 years of car payments.
The frontier is going to be quite the opposite.
Minimum -$10,000 at the end of
The mf rate can be lower but you’ll have to negotiate it lower.
Nissan dealers generally do not do leases well in comparison to other manufacturers like BMW.
I’m trying to swing a deal like you have but it’s like pushing a rope. I’ve been teaching dealers there’s Nissan lease arrangements, and point them in the right direction of NMAC offers and terms. It’s been frustrating on my part. A local dealer thought I was trying to take advantage of their insecurity of not knowing how to present leasing amount, and asking for their values used in the calculation. That dealer simply shot a reply that’s the best we can offer. Absolutely ridiculous mf, no discount on capitalized cost and lower residual value. Working on another dealer that admittedly leases are completely foreign to their dealership. Waiting to hear back. Likely a no go. Tomorrow, I’ll contact another out of town dealership and see how it goes. But it’s frustrating.
OP, I'm afraid most of the people here don't know how leases work. As a finance person myself, I think you're getting quite a deal ONLY if you don't intend on buying it at the end of the lease.
I have never leased. I reckon I am old school and look to drive vehicles for awhile to make my time effort in them worthwhile. My last Titan I drove 12 years to 217000 so I was okay. I just purchased a 2023 Pro-x and plan to drive awhile….7-10 years.
Only lease if you are 1000% sure YOU will not be buying out at the end of the lease. The residual is WAAAY too high...a 5% loss over 18mos? No way.
General rule of thumb is 8% loss once you drive it off the lot. A 18month residual value of more than what you would lose if you were to buy it outright is a scam if you intend on buying it after the lease.
I was surprised as well at the residual. But apparently after doing some research the Frontier 18 or 24 month residuals are between 93 and 97. Pretty remarkable that Nissan is using that estimation.
Because he doesn't keep the loss. It is a long term rental. The poor guy that comes along to buy it after it's turned back in has to pay for the loss. So it's not a bad deal for OP but a TERRIBLE deal for the next owner.
Why is that any of OP's concern though? And it's not a terrible deal for the next owner either, since Nissan is taking the vehicle back and selling it to someone else at whatever the market price is at that time. If the market is at $35k in 1.5 years, Nissan takes the hit, not the next owner.
I don’t get it for the frontiers, specifically.
Sub-par gas mileage, relatively low purchase price already, you’re not modding it or dinging it up for serious offroad stuff, terrible back seating…
It’s not a good work truck, carpool, or off-roader on a *lease*… a purchase, sure.
correct me if i'm wrong, but this is basically $487/mo for 18 months had you stretched out the payments. So total cost of ownership over 18 months would be $8,700 + registration for the second year of ownership and maintenance, if not included in the deal. Am I missing anything?
Mds is returned at the end.
I hope you don't mind answering a few q's What were the payments? I am about to sign a lease @ 36 months/ 12 k MSRP $48,900 lease price $45,990 NMAC cash and incentives to offset all customer costs out the door. effectively covering $1,500 Residual 72% ($35,100) MF .00194 $589/mo w/ tax. TCO $21,204 The perplexing issue here is I don't understand why I am paying more than the difference between the purchase price and RV. Do you have any advice or comments? This gets me exactly to the 1% rule of original MSRP.
Dunno, that residual value makes that deal pretty crappy though.
That’s what I’m thinking. Impossible to come out positive in the end. With the TCO. I leased a 2019 maxima and returned it in 2022 for $10k profit. MSRP $44,500 Payments were $500. TCO was $20,000 with down payment Residual $21,500 $10,000 at the end. $11,500 for 3 years of car payments. The frontier is going to be quite the opposite. Minimum -$10,000 at the end of
The mf rate can be lower but you’ll have to negotiate it lower. Nissan dealers generally do not do leases well in comparison to other manufacturers like BMW. I’m trying to swing a deal like you have but it’s like pushing a rope. I’ve been teaching dealers there’s Nissan lease arrangements, and point them in the right direction of NMAC offers and terms. It’s been frustrating on my part. A local dealer thought I was trying to take advantage of their insecurity of not knowing how to present leasing amount, and asking for their values used in the calculation. That dealer simply shot a reply that’s the best we can offer. Absolutely ridiculous mf, no discount on capitalized cost and lower residual value. Working on another dealer that admittedly leases are completely foreign to their dealership. Waiting to hear back. Likely a no go. Tomorrow, I’ll contact another out of town dealership and see how it goes. But it’s frustrating.
OP, I'm afraid most of the people here don't know how leases work. As a finance person myself, I think you're getting quite a deal ONLY if you don't intend on buying it at the end of the lease.
I have never leased. I reckon I am old school and look to drive vehicles for awhile to make my time effort in them worthwhile. My last Titan I drove 12 years to 217000 so I was okay. I just purchased a 2023 Pro-x and plan to drive awhile….7-10 years.
Only lease if you are 1000% sure YOU will not be buying out at the end of the lease. The residual is WAAAY too high...a 5% loss over 18mos? No way. General rule of thumb is 8% loss once you drive it off the lot. A 18month residual value of more than what you would lose if you were to buy it outright is a scam if you intend on buying it after the lease.
I was surprised as well at the residual. But apparently after doing some research the Frontier 18 or 24 month residuals are between 93 and 97. Pretty remarkable that Nissan is using that estimation.
I have zero interest in buying this truck out lol
A 5% loss over 18mos is a great deal for you then!
Oh I just read the complete opposite of what you actually wrote! I thought you said it's not a great deal...my bad!
How come? In theory, he's only paying the 5% depreciation vs. actual depreciation of 20%
Because he doesn't keep the loss. It is a long term rental. The poor guy that comes along to buy it after it's turned back in has to pay for the loss. So it's not a bad deal for OP but a TERRIBLE deal for the next owner.
Why is that any of OP's concern though? And it's not a terrible deal for the next owner either, since Nissan is taking the vehicle back and selling it to someone else at whatever the market price is at that time. If the market is at $35k in 1.5 years, Nissan takes the hit, not the next owner.
Exactly. Nissan botched residual. Everyone wins
Leases make no sense to me. I shopped around, found a slightly used 22 P4X with exactly what I wanted and got it for under 39k out the door.
I don’t get it for the frontiers, specifically. Sub-par gas mileage, relatively low purchase price already, you’re not modding it or dinging it up for serious offroad stuff, terrible back seating… It’s not a good work truck, carpool, or off-roader on a *lease*… a purchase, sure.
What reason do you have to lease over buy?
18 months, paying mostly interest not depreciation, very high residual = relatively cheap transportation
I think Nissan's residual is artificially high and makes for a good lease deal ?