Sorry, Sterling (I feel a little sorry for myself, too). The lease rate stays 3.75%. Were I to prepay the lease of a Subaru, I can drop the lease rate down from 4.8% to 1.8% - a substantial savings, and it makes me take a harder look at the Forester. But the Nissan rate stays at 4.0% less 0.25%. Damn.
This is how I understand it:
MSRP on the X-Trail XE AWD Auto is $28,298
Selling price = 26,521 (assume)
F+PDI 1000
Air + Gas Tax 175
Admin 298
Subtotal = $27,994
Grad (350)
Capital Cost = $27,644
Residual after 36 months is 53%
.53 x $28,298 = $14,998
Now, the interest is applied as a reduction in the residual by a money factor. For 4.0% interest, that factor is 0.8871. They couldn't tell me the money factor for 3.75%, so here's mine:
x = 1.0375
x^3 = 1.1168 (3 year lease)
Money Factor = 1/x^3 = 0.8954
There may be a little play in this factor on their end, as deconstructing their factor this way converts 0.8871 to 4.07%, but close enough. We'll worry about 0.07% later.
Base prepaid amount = CapCost - (Residual x 0.8954)
= $27644 - $13429 = $14,215
GST + PST in = $16,347
PPSA = $58
Total prepayed amount = $16,405 + $475 security deposit = $16,880
Residual = $14,998 + taxes = $17,248 (less $475 deposit) = $16,773
Total if bought out is $33,653, which represents a premium of $1,862 over the cash purchase price, but the tax advantages of leasing help negate that.
So, no reduction in lease rate from Nissan. I'm a little ticked, but I've asked a few dealerships, including the one where I intend to buy.
For comparison, I ran the same numbers for a Subaru Forester X auto, and assumed a 5% discount, for sake of argument. Recall, the prepayed lease rate is 1.8%, down from 4.8%. Very nice.
Total prepayed amount = $18,110
Residual = $14,998 + taxes = $15,726
Total if bought out is $33,863, which represents a premium of $877 over the cash purchase price.
Basically, it's a wash. The Subaru MSRP is higher, and the residual is lower, which leads to an extra $1,200 due before pick-up. It would be even higher if not for the lower lease rate. In three years time, the buyout for the Nissan is $1,000 higher.
The Nissan allows me to claim $428 per month against my taxes. The Subaru allows me $473 per month during the lease. (Base Pre-payed + PST) / 36
After all that math, it will basically come down to which model I like more. lol
The Subie has a little more of a "soccer mom" feel to it, but it's a little lower and drives a little more like a car, which is good. The X-Trail is better-looking to me, and slightly larger inside with the seats down. AWD system goes to Subaru. Better engine may just go to Nissan (not sure). Mileage is about 1/2 L/100km better in the Subie.
Ah well, I have to wait until Thursday or Friday for the insurance cheque anyway.