Wednesday, September 15, 2010
So I Like the Leaf. How do I Get One?
How does one usually go about buying or leasing a hot new car that is in limited supply? Usually, you go to one or more car dealerships and get your name on their "list". Sometimes they ask for a deposit. Discounts are never possible. In fact, you're usually lucky if they'll allow you to buy the car at MSRP. Instead, dealers usually mark up the price by several thousand dollars. When the car arrives, they may or may not call you according to their list if they can get a better price from someone who walks in the door with more money. When you finally get the car, you are usually angry, stressed and you'll probably regret paying higher than MSRP after a year, when the car is being widely discounted.
In fact, that is the way it works in almost every case. And that is what some prospective buyers of the Chevy Volt are experiencing today.
Nissan decided on an innovative online system to help to make the buyers' experience more predictable and less stressful. Prospective buyers registered on Nissan's Leaf web site before the middle of April, 2010. On April 20, people on the interest list were sent emails telling them that they could register their interest in buying the car. They each put down a $99 deposit to hold their reservation. The process can be tracked on the web site. Then, beginning on August 31, reservees were notified that they could place their orders. The orders were placed through Nissan dealers who were pre-selected by the customers.
This system made the buying process transparent, and the power was in the hands of the customers. They could negotiate the selling price in advance, and the dealers knew that the buyer could take his reservation to another dealer if he/she didn't like the price. The result was that dealers began to DEAL. Through online forums such as http://www.mynissanleaf.com/ , prospective buyers could find out which dealers were discounting the Leaf. This led to more discounting by other dealers. Discounts of $1,000 became common and a few dealers offered discounts of 5% off the $34,000 MSRP, equal to a $1,700 discount, or more if the optional equipment was discounted.
So as of this writing, the same system is in place. You can buy a Leaf by registering on the Leaf web site: http://www.nissanusa.com/leaf-electric-car . Since the car is in limited supply and the production and sales are being carefully managed by Nissan, you may not be able to place your order for a Leaf until early 2011, with delivery of the car by summer or fall.
Alternatively, if you really want or need the car sooner and you haven't registered with Nissan yet, you could try talking to dealers to see if they have a list of prospective buyers who are interested in buying a car if a registered buyer cancels their order. It is possible that these cars may become "orphans" and that dealers will be able to sell them as they become available. I don't know this for sure, and it is also possible that these "orphan" Leafs will be offered to the next registered buyers in line. If dealers do have orphan cars for sale, be prepared for them to charge additional fees.
My next blog topic: My experience with Nissan's ordering system.
Thursday, September 2, 2010
And....I Chose... the Nissan Leaf!!
My Next Car: The Nissan Leaf SL Electric Car
Why?
First let's look again at my reasons for wanting an EV.
1) I want to reduce my oil consumption and my carbon footprint.
2) I want a fun, interesting car to drive.
3) I'd like to make good use of the extra electric power that our solar PV system makes.
4) I'd like to support the adoption of EVs in our country to help us to use less foreign and domestic oil.
5) I think it would be fun to be an early adopter and I'd like to be in a position to explain EVs to other potential EV owners and to help automakers and governments to understand how people will use EVs.
6) I'd like to experience what it is like to drive an EV in daily life, including using public charging opportunities when needed to boost my range.
7) I'd like to reduce our family driving costs.
I thought that the Volt would be a less aggressive move to reduce oil usage and reduce our CO2 production because of its gas engine. The all-electric Leaf felt like a more positive choice in that regard.
The purchase price was a factor as well. Though I plan to lease the Leaf, and the Volt can be leased for a similar cost, I'm skeptical of being able to get that low lease price from the Chevy dealers. Both cars are in very limited supply, but the Chevy dealers are known to be trying to gouge extra profits on the Volt. I had much more confidence in Nissan's internet sales plan that keeps the dealers from trying to get extra profits.
I also liked the flexibility of being able to seat five people in the Leaf, as compared to four in the Volt.
The Leaf meets all of my needs in a car to replace my current BMW. I don't have a daily commute, and I drive only about 6,000 miles per year. We'll drive the Leaf more miles than that, replacing some of the miles that we currently drive the Prius. But the 100 mile range of the Leaf should be more than enough for the neighborhood driving that we do, and the Prius is already, and will remain our car for distance driving.
Annual costs:
The question of the cost of driving is still an open one. Charging the Leaf late at night during so-called "Off-Peak" hours will cost between two and three cents per mile. Driving our Prius hybrid costs about twice that amount. There will be no energy costs for up to 5,000 miles per year because of the extra power our solar PV system makes. I calculate that overall, we'll save close to $1,200 per year in fuel costs. There may also be some savings in car repair costs.
However, we'll be spending about $2,700 in electrical upgrades to our home to accommodate the 240 volt charging system for the Leaf. So divided by three years, those upgrades will reduce our savings to only $300 per year. Of course, the electrical upgrades will last for much longer than three years, so they can be used for other electric cars we might own as well.
So it doesn't make sense to drive electric to save money. The attraction needs to be one of reducing pollution, using no petroleum, and having your own electric way to fuel your family car. It is attractive to think that when the next oil company-manufactured gas shortage happens, I can smile and ignore it.
Fun and sporty to drive:
This was the one area that caused me a lot of thought. The Volt seemed to be a sportier car than the Leaf, and a choice of a gas-powered sporty but efficient car like the Mini or a Miata might also be more fun to drive. But as I've focused on the Leaf, I've become really enthusiastic about this new way of driving. I think that the novelty of an EV, combined with the strong torque of the electric motor will be plenty satisfying to me. But I'm leasing the Leaf, so if I find it boring, I will look for something more interesting after the three year lease is up.
In My Next Blog Post: How Do I Get One of These Cars?
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