Previous Model Year Old Stock Pricing

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After the discussion about a Nissan Leaf ( https://bobistheoilguy.com/forums/ubbthreads.php/topics/4471822/Nissan_Leaf_Thoughts? ) and a test drive, we think the car would work great for us, as long as we get a good deal.

We're not in dire need for a new car, so we're willing to walk away.

The situation is that we only want a certain trim model (the SL), and there aren't any 2017 models within 250 miles (there's one around 260 miles away - but that would take 3 full charges to make the trip). There are a few dealers with 2016 SL models. The 2016 is identical to the 2017 model, so we are fine with the vehicle, as long as it is priced appropriately.

Here are the major factors I see:
-2016 model has already depreciated significantly
-2018 model is an all new generation (details to be announced early September)
-it is the only Leaf the dealer has in stock, and has sat around for at least a year (not a hot seller)
-current gas prices (~$2.00/g) make electric vehicles less attractive

As a baseline, I checked out truecar.com for my local market for a 2017 Leaf SL:

MSRP: $39,635
Market Average: $38,357 (MSRP - $1,278)
Factory Invoice: $37,909 (MSRP - $1,726)
"Great Price": $38,052 (MSRP - $1,583)
"Exceptional Price": $35,832 or less (MSRP - $3,803)

(btw, we will be paying significantly less than that due to rebates, but I'm comparing prices before rebate)

I did another comparison, comparing the current used car value of a 2012 Leaf vs. a 2013 Leaf with the same mileage, the different was about $2,700.

What kind of price/discount would you expect for a previous model year vehicle?

Thanks for your thoughts!
 
make sure you get the tax write off,

to give you an idea I bought a 2016 in 2017 and the savings were about 20% off mrsp for a $5x,000 vehicle.
 
Originally Posted By: stockrex
make sure you get the tax write off,

to give you an idea I bought a 2016 in 2017 and the savings were about 20% off mrsp for a $5x,000 vehicle.



Thanks! 20%, good to know a real life experience. And absolutely, tax credit will happen.
 
Varies a lot on the model/popularity as well as how competitive the market segment. Mass market volume sellers can/do see a bigger discount that niche items.

However, I was seeing *new* LEAFs going for the mid-teens with various rebates. Talk to your local EV club. They were offering 15K to sell to specific club members. I would personally buy used if going with a LEAF. Depreciation is a B for those cars that often see less than 5K annual mileage to begin with.

I bought my 2015 Genesis in May 2016 for about 18% off after adding a few minor options like floor-mats but their 2016 were just becoming available as the last production model. Still, the Coupe market is often less flexible. Low volume items will be.

I always negotiate the "leftovers" as ultra-low mileage "used cars" (with better finance options).
 
Originally Posted By: FutureDoc
Varies a lot on the model/popularity as well as how competitive the market segment. Mass market volume sellers can/do see a bigger discount that niche items.

However, I was seeing *new* LEAFs going for the mid-teens with various rebates. Talk to your local EV club. They were offering 15K to sell to specific club members. I would personally buy used if going with a LEAF. Depreciation is a B for those cars that often see less than 5K annual mileage to begin with.

I bought my 2015 Genesis in May 2016 for about 18% off after adding a few minor options like floor-mats but their 2016 were just becoming available as the last production model. Still, the Coupe market is often less flexible. Low volume items will be.

I always negotiate the "leftovers" as ultra-low mileage "used cars" (with better finance options).


We're expecting a $10,000 utility rebate plus the $7,500 federal tax credit, so the new vehicle should be under $20,000 before tax and paperwork, I'd imagine a base model S would easily be in the mid teens. A used model is still less, but we get the fresh warranty in addition to a brand new car. Better financing too (if we decide do finance).
 
I think that is why the resale on electric cars is so low. People know about all of the rebates, etc.
 
Originally Posted By: fields
I think that is why the resale on electric cars is so low. People know about all of the rebates, etc.


Or maybe resale as a percentage of the actual net price is pretty strong?
 
If you can get older model for depreciated price all in. Around here dealers offer less discount than depreciation figuring some rube will be lured in eventually. If so the newer car and tell them to stuff it.

Also, ELECTRIC CAR! lithium ion ages as it sits. Any way you slice it you have one less year of battery capacity. And sitting fully charged is no good either. You have no way of knowing.

Once new model hits, even bigger nosedive. It's an older design with new having much better technology very likely. For similar MSRP
 
Yeah, I am worried it was sitting around plugged in for the last 2 years, but I'll get a better idea of that tomorrow when we take a look at it. At the least, I'll confirm that the car was never technically put in service, so the warranty would start if we buy it.

Thanks everyone!
 
I'd also look at a Bolt, which has a range >200 mi. MSRP is around the same as the Leaf and it is a lot more practical.
 
Originally Posted By: NO2
I'd also look at a Bolt, which has a range >200 mi. MSRP is around the same as the Leaf and it is a lot more practical.


Except that Nissan is dealing and GM is not. MSRP is the same but Nissan is letting the Leaf go new for nearly 1/2 the msrp. On the other hand, the nearest Bolt-selling dealer has them all listed at about 44K (10K in up-charging options). I was looking into trying to get a fleet sale from these "non-selling" bolts but the issue is that GM is just not willing to deal.
 
Yeah, Nissan being willing to deal is a major factor. If it wasn't for the deals and we were looking in the $30-40k purchase price range, we'd be probably be more seriously looking at a Plug-in Hybrid - it offers everything we need for our short trips on pure electric, with the added bonus of being able to use it long distance.
 
I believe the driving factor on older model year new cars is the resale value on the used market. I got my '12 F150 in '13 for just under the price that Carmax was asking for a comparative used model with about 13k miles. They can argue all they want, but there shouldn't be a big premium for "new yet neglected on the lot"-- parked outside for a year in the sun and unknown charging history.
 
Well, we bought the Leaf last night! There was a big rebate going on, so it's hard to compare specifically, but we ended up paying $26k (before sales tax, and before subtracting the federal tax incentive). Will do a vehicle review soon!
 
Originally Posted By: EdwardC
Well, we bought the Leaf last night! There was a big rebate going on, so it's hard to compare specifically, but we ended up paying $26k (before sales tax, and before subtracting the federal tax incentive). Will do a vehicle review soon!


If you can get all the rebates at that price, it is a great deal.
 
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