Selling Our Nissan Leaf Was, Well, Weird

Leaffront

After 19 months of testing, Cars.com has sold its 2011 Nissan Leaf electric car. In my original review, I questioned how much a used EV would be worth once the second generation came out. Would it be as undesirable as a previous-generation smartphone?

Well, the Leaf, along with all other EVs, remains in its first generation, and still our long-term test car's resale proved to be a complex affair.

Sticker-priced at $35,665 as equipped when new, our loaded 2011 Nissan Leaf SL with 11,000 miles sold for $19,000 last week after 48 days of tepid interest. This represents depreciation of 47% ... but that doesn't tell the whole story.

LEaf-sale1

The federal tax credit of up to $7,500 (depending on the buyer's income, as we've reported) is clearly reflected in resale values. That alone decreased our car's effective sticker price, when new, to $28,165. Based on this figure, the depreciation would have been a still-disappointing 32%.

Selling our car in Illinois, we got a double-whammy, thanks to a generous $4,000 state tax credit, for which we didn't qualify when we bought our Leaf (out of state) in 2011. From the perspective of an Illinois buyer, before our car drove off the lot almost two years ago, it was already down to an effective MSRP of $24,165. Base our depreciation on that number, and our car had lost just 21% of its value when we handed it to its new buyer.

With these adjustments, our car's resale price doesn't look unreasonable. We looked up resale for a 2011 Nissan Sentra and a 2011 Altima, each with an unrealistically low 11,000 miles and in good condition. Their depreciation worked out to 27% and 26%, respectively. This is worse than the 2011 Leaf's theoretical 21% but not as bad as the 32% we actually saw because we couldn't take the additional $4,000 state incentive.

Our market doesn't make used Leafs very attractive, either. A comparably equipped brand-new 2012 Leaf SL would cost an Illinois buyer as little as $26,835 adjusted ($38,335 without tax credits). Clearly, our Leaf would appeal to specific types of buyers: out-of-state shoppers, anyone who doesn't like paying for initial depreciation or folks who don't have the upfront cash for the purchase ahead of an eventual tax credit.

Over 48 days we received fewer than 10 contacts, most of them serious, and showed the car to only three shoppers. One was the local representative of a Florida resident who seemed serious but who later vanished.

We started our Cars.com Sell It Yourself listing at an optimistic $27,000 asking price, describing the Leaf's condition as very good with all updates and recalls. We decreased it regularly, ultimately settling at $21,000 OBO before accepting $19,000.

Leafdoor

The ad didn't mention the Leaf's Cars.com ties. When we disclosed its ownership to prospective buyers, its history with Cars.com's editorial department didn't seem to bother anyone, or help its value. If anything, they were pleased to hear why we were selling it: We felt we had learned as much as we could about it after 19 months, and it had become mundane in its reliability. (We have to entertain the possibility, however, that some shoppers were turned off by its title designation as a corporate car — clearly presented in the free Carfax report attached to the listing — and as a result didn't contact us.)

Some shoppers said our car's mileage of nearly 11,000 miles (listed as 11,000 on the ad) seemed high. We purchased it in February 2011. Breaking it down by day, even a range-limited car this old could have piled on more than twice as many miles in normal use. But 11,000 still seems like a lot of miles compared with a typical 2011 purchased up to a year later. A local Nissan dealer grudgingly quoted us $19,000 when the process began, saying he had just paid less at auction for two other Leafs with fewer miles.

We also have to question the Kelley Blue Book value, $23,464. Even if our car were somehow unattractive, that wouldn't explain the similarity between our regional valuation and others in the country: Kelley values are tied to ZIP codes, but they clearly don't reflect our state-specific reality. All the regions I looked up that don't offer state incentives were within a few hundred dollars of our valuation - and most of them were lower.

Leafrear

Resale values take time to reflect reality, and it's possible recent news that some early, high-mileage Leafs in high-temperature regions that have lost battery capacity and range are depressing resale values in the real-world marketplace.

Anyone who has followed our testing knows we also owned a 2011 Chevrolet Volt; we sold that, too, but its May 2011 collision (divulged in the ad) proved a poison pill for most shoppers, even though it was professionally repaired and flawless since June 2011. Chevy dealers wouldn't touch it, and CarMax quoted us $21,000 but said it would wholesale the Volt rather than sell to a consumer. In the end, a local couple that had driven a 2012 Volt as a loaner bought it for $22,500. Sticker price was $43,105 as equipped with destination.

The Volt came up in twice as many searches as did our Leaf, which reinforces the greater interest (and sales) we've witnessed for new versions of each.

Related
Cars.com Adds 2011 Nissan Leaf to Green Fleet
Cars.com Compares 2012 Nissan Leaf with 2011
Cars.com's Nissan Leaf Passes One-Year Mark

Comments 

If you ask me, this only points out that real-world interest in all-electric cars is still pretty low. You also have to figure that many holdouts right now are waiting for a new generation of electric that might get better range for a daily driver.

However, even at $19K I wouldn't be interested in a compact electric because I feel that's simply too expensive for a used car. I recently bought a 22-year-old pickup in great condition (clean, but not "like new") for only $2500 plus another $2K in repairs. Getting 20mpg with a 22-year-old V8 to compete with much more modern trucks doing only 10% better? That Leaf still comes out too expensive. When new price comes down to $25K before rebates/credits and the 2-year-old model still holds that $19K, then it might be worth it.

I'd be far more interested in a Tesla with a 350-mile range priced about $25K as I could visit in-laws without having to spend 6 hours or more recharging in-route. I think a Tesla pickup could be effective too.

Dan

DWF-

Yeah, and I'd be far more interested in a Ferrari with 1,200 horsepower for $17k, but unicorns are hard to come by nowadays.

AC Points

This is the first bit of evidence I've seen on an aspect of plug-in vehicles that I've been wondering about. Just how strong will the used car market be for plug-ins? A primary requirement for owning a plug-in is you have to have a garage with power. This eliminates a large portion of new car customers around the world right away. The typical used car buyer is even less likely to be able to garage the vehicle. And, if resale value on plug-ins is significantly lower than non plug-ins it will drive up lease rates compared to non plug-ins as well. I think long term success of vehicles like this is not only tied to the appeal to new car buyers but also their viability in the used car market.

kevin

You just need power not a garage.
I have a 2 car garage, but like many homes is used for 1 car and storage, so the leaf and its charge dock sit outside, rain, snow, sun and all. no problem
so lets drop the " you need a garage bit"

Steve

I believe that for these cars to really reach their potential as currently built, it would take a lot more consumer education by the manufacturers and advocacy groups, and a lot less misinformation by the usual propaganda outlets. The Tesla does not necessarily take 6hrs to charge and the Leaf does not require a garage. Education is the answer.

I'm having a blast with the used, 2011 Nissan Leaf that I purchased. Keeping a diary / blog about the experience - follow along, if you're EV curious... EVearlyAdopter.blogspot.com

Post a Comment 

Please remember a few rules before posting comments:

  • If you don't want people to see your email address, simply type in the URL of your favorite website or leave the field empty.
  • Do not mention specific car dealers by name. Feel free to mention your city, state and brand.
  • Try to be civil to your fellow blog readers. This blog is not a fan or enthusiast forum, it is meant to help people during the car-buying process and during the time between purchases, so shoppers can keep a pulse on the market.
  • Stay on topic. We want to hear your opinions and thoughts, but please only comment about the specified topic in the blog post.
view posting rules

If you have a TypeKey or TypePad account, please Sign In

Search Results

KickingTires Search Results for

Search Kicking Tires

KickingTires iPhone App
Ask.cars.com