You’ve read all the tech details of the second-generation Nissan Leaf, which was officially launched in Malaysia earlier today, so if you’re considering the all-electric hatchback, you’re already aware that Edaran Tan Chong Motor (ETCM) is offering two ways in which you can get one.
The first is the conventional route, in which the car can be purchased, and there’s the alternative path, in which you can lease the Leaf via a car subscription plan. The question is, does the leasing plan make better financial sense, or should you opt for the traditional manner of going via the hire purchase channel?
From a cost point of view, the conventional method of buying a car is straightforward and transparent – the fully-imported CBU Leaf is priced at RM188,888, on-the-road without insurance. As indicated in our launch report, the Leaf gets complete import tax exemption, and is only faced with 10% excise tax and SST.
The Leaf comes with a three-year/100,000 km warranty and three-year/60,000 km free service maintenance, while the vehicle’s lithium-ion battery gets an eight-year/160,000 km warranty for peace of mind ownership.
As for the car subscription plan, this is pretty much a “pay and use” format, but unlike a traditional hire purchase scheme, you’re merely renting the car for the duration and don’t end up owning it at the end of the cycle. For this, it’ll cost you RM3,500 a month to lease the EV, set on a three-year leasing contract. The monthly rate is the same for an individual or a company choosing to subcribe to the Leaf.
As such, the monthly leasing rate adds up to RM42,000 a year, or RM126,000 for the tenure of the 36-month contract, which makes the option a more cost effective one when viewed in direct fashion. Of course, there’s no vehicle to offset funding for a new one, and you’ll have to start over again at the end of the three years.
You can choose to buy the car at the then current market value based on negotiations made, and ETCM will help you to apply for a hire purchase scheme if you choose to do so. Or, you could opt to subscribe for another new Leaf – according to the company, there will likely be other EVs and new subscription options by that time.
Do note that there’s a mileage cap with the subscription plan, with use being limited to 100,000 km of travel over the three-year contract period – there’s no specific mileage you’re allowed to use in a year, just that the total over 36 months can’t exceed the stipulated cap. Apparently, there’s a charge if you exceed 100,000 km of use, but the company hasn’t detailed how much that will be.
A point to note is that the leasing plan has some other costs involved. A two-month security deposit is needed, as is a one-month advance payment, which means you’ll have to come up with RM10,500 to get the lease going. The deposit is refundable, so that doesn’t figure as additional cost in the final analysis.
Also, the lessee will have to pay for the yearly road tax and insurance for the duration of the contract, much like a conventional HP plan. We were told by ETCM that the road tax for the Leaf is RM187 a year (there was no specific mention of this in our launch report, the pricing merely indicating OTR), and the insurance – which will have to go through ETCM – for the Leaf in the first year will cost above RM5,000. Again, while this is extra cost to note at point of entry for leasing, you’d also have to do the same for the HP route.
Elsewhere, while the car comes with the aforementioned three-year/60,000 km free service maintenance, customers will have to pay for wear and tear replacement items such as tyres, wipers and brake pads, if these are needed over the period.
As mentioned in the launch report, the Leaf comes with a single-phase 6.6 kW AC home wallbox charger as standard, and this applies to both purchase and leasing, with installation being free in either case. The process will require a technician to inspect the wiring on location to ensure suitability, and in the case of leasing, one should bear in mind that the wallbox will be removed once the contract is over and the lessee chooses not to extend with another EV subscription plan.
It was announced that Leaf adoption will also come with an owners privilege programme thrown in at no extra cost, in which there is 23 days of complimentary usage a year of the X-Trail, Serena and Navara for other travelling needs, during the first three years of ownership.
The company says that the courtesy programme is also included for the leasing plan, also for the same period. All that’s needed to secure the use of a complimentary vehicle is two weeks advance notice, which can be done online or by calling the customer service centre.
So, which sounds like the more appealing route, and not just from a cost viewpoint – conventional hire purchase, or the subscription plan? Share your views in the comments section.
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Even rental car system don’t sound so complex and disadvantageous to the users. Already paying similar rate with hire purchasing the car, then the steep upfront payment, still needing to pay the road tax & insurance, still needing to pay for wear & tear replaceables, footing the cost for power, and in the end the car still doesn’t belong to you.
I agreed, this scheme (read scam) put too much favor to the lessor and burden the lessee.
Corporate go for Leasing due to accounting,
Corporate does that because the car will be under company expenses and will appear in their P & L, no cost to owners & bosses, couple of years down the line the cars will be changed so leasing is the better option for companies.
Better to buy game changing Iriz EV but after 6 years of waiting, Proton game the Iriz EV over instead…
Why talk about others? Let’s talk about Perodua, your boss have been talking about hybrid car since long time ago and said they will market it soon but until now habuk pun tarak. When is Perodua hybrid coming?
Where is the Perodua Hybrid? Perodua shown us the Kenari Hybrid in 2003, claiming production was feasible. After 16 years waiting, we still not getting anything hybrid from Perodua. Hybrids are the first step towards full EV but Perodua is game over in making hybrid despite Toyota leader in the field.
Someone keeps demanding for local EV car but later complains on the high price of replacement battery. He should make his own EV car that runs on cheap AA batteries.
Sounds appealing to expatriate community.
Foreign students normally get Sambung bayar.
But they are a rapidly dwindling community in this economic downturn.
Rapidly more expat community stay around damansara damai, wangsa, kepong & puchong.
For EVs, i would personally go for the leasing option. Why?
1) If you are thinking of “owning” full electric car, which is still a new form of motor transport in the country, you should willing to pay the premium price tag in the first place. Globally, electrification is still a premium compared to fossil fueled options.
2) RM188k would translate to roughly set you back +-2.2k/mo on a 9 year tenure, with a remainder 1 year out-of-waranty battery that will be godly expensive to replace. 3.2k monthly without the headache is a steal if you compare it to other EVs.
3) Those who consider to purchase an all-electric vehicle are either eco-concious individuals or the tech-savvy executives. But most likely in Malaysia, those tech-savvy individuals with the extra RM will most likely be the target group to purchase one, and we all know, these individuals (including myself) would want new gear frequently. And if I have the option to get a new car every 2-3 years, I would do it.
Seriously “its a steal”? Hahahaha.
both is bad, nuff said
Aren’t rental supposed to be cheaper then hire purchase, since you won’t own the asset? Moreover, rental was offer by the sole distributor itself.. so much disadvantage for renting.
Leasing concept is new here so very sure lots of negative views coming on that. While most leasing concept outside Malaysia give obvious benefits on the free maintenance, ETCM here is being clever. This car is already on 3 year/100,000 km maintenance free!
But this is also available if you purchase the car as the traditional Hire Purchase way. They stated it clearly on the leasing – the cap is at 100,000 km which is THE max for the free maintenance package
So nothing is good about the leasing way ETCM proposed here. Big upfront, nothing over HP, and nothing good
The worst subscription plaN to start with…
Super stupid…
Sounds like being screwed in broad day light. We paid and thought its a hassle free thing but have to deal with the same hassle like owning the car ourselves.
Not like subs are totally bad but if we are paying much more in the end then its totally not worth it. So, it depends on how much we paid on monthly basis plus the detailed package.
anything that is leasing is not financially sound. the car is not yours and you cannot sell it. you will end up paying more than the actual cost of the car.
Leased or outright purchase, the car is illogically costly. If you Google about the price in other countries, you will find the cost in Malaysia exorbitant compared to other cars.
RM188,000 is USD40,000. So is anyone out there going set up a company to import Tesla 3 and leased them out?.
The Leaf costs about the same in Europe and the UK as well. Around €40k. And compared to petrol cars it’s quite expensive for a medium sized bare bones car.
Leasing to me normally means that all costs are covered except petrol. At 3,5k I would’ve expected the same. This is a terrible deal.
We need to add depreciation as part of running costs as well as fuel. And the rate for leasing seems more convinced
For this amount you could lease a bmw
add on 30k can own a BMW 3 series.
Minus 90k, can get a x70
Both options not worth considering at all. Seems more like ETCM undermining our intelligence, come to think of it.
Their salesmen already undermine readers intelligence when they keep harping on others for their falling sales figure.
So what is the advantage of leasing????
Neither.
With that amount of money (RM3.5k), I can buy a Kia Sportage with 3 years loan.
Petrol/Diesel takes minutes, not hours like electric.
Can go balik kampung, not some 300+ km
Kia also gives you free 3 year service.
kahkah .. 3.5k/month??? giler ke ..
188k for this car? be it loan or lease still ridiculous ..
myvi, please take my money. banjir pon bleh jalannn ..
One question? How is the road tax calculated to RM187 a year? Is the road tax system for EV already updated?
Again car manufacturer don’t like to disclose the cost for battery replacement until warranty is over then they will inform you when you need to change it.
This lease idea is lopsided deal. No deal from customers, for sure.
Profit is understandable for business, but please dont cekik darah…..
It would be great if ETCM could educate Malaysians on why we should lease instead. Otherwise, it doesnt seem to make sense for someone to get the lease plan.
Yes its green tech all hybrid early adoption stuff but hey, for that monthly rental you could opt for many more desirable car.
To me, buying anything must understand the cost first no matter how complicated it is the method throw to buyer, In this instance leasing is a method we can view as if Nissan puting a sum to us ( ie the Leaf cost RM188, 000). And in return yearly, Nissan expect a return of RM42000, equivalent in first year a interest rate from user of roughly 22% p.a. (42000/188000*100). Second year the sum base on car value should be lower than RM188, 000. Yet user still need to pay RM42000, so the rate can be more than 22%. And so on in 3rd year. I wouldn’t opt for this method of paying so high interest rate. I would still prefer conventional HP, with we are familiar of per year rate of roughly 2.5% to 3.5%, and if I were to compare similar to 22%p.a., we need to find the 2.5% effective rate, which is stated in HP agreement, roughly around 4.5% p.a..
So FD about 4%, 22% in this leasing method, HP effective rate about 4.5%…
All this rate is comparable, that’s why I would not go for leasing method unless the rate can be below 10% for convenience sake, 22% is too much for my hard earn salary.
Lease Option – clearly to generate great profit for ETCM but big loss for lessee…HP is least burden