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Makes And Models => Zero Motorcycles Forum | 2013+ => Topic started by: ZeroSinMA on April 20, 2014, 06:59:56 AM

Title: Are Zero Motorcycles overpriced?
Post by: ZeroSinMA on April 20, 2014, 06:59:56 AM
I do not understand how Daimler AG can sell an entire electric car for the same starting price of $12,995 as Zero's Zero S electric motorcycle.

http://www.smartusa.com/comparevehicles/ (http://www.smartusa.com/comparevehicles/)

http://www.zeromotorcycles.com/zero-s/order.php (http://www.zeromotorcycles.com/zero-s/order.php)

The bill of materials (BOM) for the Smart has to run into 1000s of parts vs 100s for the Zero S.

Air conditioning.

Heating.

Sound system.

Power windows.

Etc, etc.

Then there's the battery pack, long assumed to be Zero's #1 COGs hit.

The entry level Zero S has an 8.5kWh LiIon battery pack, less than half the size of the entry level Smart with a 17.6 kWh LiIon battery pack.

Is Zero is making a fat profit margin or is Daimler losing a bundle on every Smart EV it sells?

Theories? 
Title: Re: Are Zero Motorcycles overpriced?
Post by: Pprior on April 20, 2014, 07:06:08 AM
Big car companies can lose money on a product. Zero has smaller margins of scale and also a need for capital for development.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ultrarnr on April 20, 2014, 07:30:24 AM
Take a look at other motorcycle brands and the volume of bikes they sell compared to many car companies. I am sure economy of scale plays a huge part in the price of most motorcycles when you compare them to most car companies.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ColoPaul on April 20, 2014, 07:34:30 AM
I do not understand how Daimler AG can sell an entire electric car for the same starting price of $12,995 as Zero's Zero S electric motorcycle.
Ummm, fine print time.

"As low as $12,490[1] with Battery Assurance PlusSM and after federal tax credits of $7,500".   So this implies an actual MSRP of $20,000.

There's also something funny about the "[1]" that's plastered everywhere on the link you provided, but I can't find what it's referring to.
Here's a link which pretty clearly states the real MSRP is $25,000:

http://en.ta64.smart.com/is-bin/INTERSHOP.enfinity/WFS/mpc-us-content-Site/en_EN/-/USD/Smart_CC-Line?d=true&rurl=&modelCode=&lineCode=A03edc&lastEngineCode= (http://en.ta64.smart.com/is-bin/INTERSHOP.enfinity/WFS/mpc-us-content-Site/en_EN/-/USD/Smart_CC-Line?d=true&rurl=&modelCode=&lineCode=A03edc&lastEngineCode=)
Title: Re: Are Zero Motorcycles overpriced?
Post by: firepower on April 20, 2014, 09:53:28 AM
Even more expensive in Australia. Don't know how they can justify these prices compared to USA and Europe.
Anyone have pricing for HongKong or South America?

ZERO S 8.5 $20,490
ZERO S 11.4 $23,390
ZERO SR $25,490
ZERO DS 11.4 $23,490
ZERO FX 5.7 $19,490

Also Australia and USA have signed the unFair Trade Agreement. I sure its a case of local importer price gouging.
Title: Re: Are Zero Motorcycles overpriced?
Post by: frodus on April 20, 2014, 11:29:25 AM
Big car companies get huge subsidies too.... Zero and Brammo.... Not so much. Also a lower fed incentive in the USA.

I think they likely lose some money.... But they NEED these vehicles sold in order to meet got regulations on carbon credits... At lease here in the US. Likely similar for other countries. It offsets all of the shitty heavy polluters.
Title: Re: Are Zero Motorcycles overpriced?
Post by: arno on April 20, 2014, 12:11:37 PM
Here in Germany the electric smart is delivered with a battery you have to rent.
You do not own the battery but pay a certain sum each month depending on kilometers/year.
Starts at 60 Euro /month.
In case of selling the car the new owner has to enter this contract and is credit checked before.
I think, the most value part of the zero motorcycle is the lithium batteryyou have really bought.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ZeroSinMA on April 20, 2014, 06:50:34 PM
Thanks all for your thoughts on this. The answer is that $12,995 isn't the actual MSRP. This amount includes a $7,500 rebate plus a monthly service charge for the battery that is not part of the purchase price, and you do not own the battery outright. The real MSRP is closer to $25,000. On the COGs side of the equation Daimler can take advantage of economies of scale, and leverage the Smart platform that it sells in volume with as ICE vehicles. Most of the car design is a sunk cost, and most of the parts are purchased from suppliers in high volumes for all of the versions of the car that are built on the Smart platform. Finally with respect to gross margins, Zero only sells Zero Motorcycles and cannot afford to sell each unit at a loss whereas Daimler can and perhaps has to in order to earn credits designed to reward makers of so-called "green" electric cars.

The price, cost, and margin equation is:

(http://www.zeromotorcycles.com/shop/images/med-lrg/zero-s-2014-black.jpg) + (http://www.zeromotorcycles.com/shop/images/med-lrg/zero-s-2014-black.jpg) =

(http://www.smartusa.com/_assets/gallery/electric_drive_exterior_2.jpg)

I wonder if Zero can sell more bikes by lowering the MSRP and adding a battery pack rental option.
Title: Re: Are Zero Motorcycles overpriced?
Post by: Lipo423 on April 21, 2014, 12:05:00 AM
Agreed...in Spain you would pay 17.280 Euros for an SR, while in the US is around $17.000, this is 35-38% cheaper at current exchange rate...
In Europe it has to do with local taxes, homologation and bla, bla, bla...whatever they tell me it should not be more expensive...on top of it our lovely transportation minister has eliminated the government rebate you got in 2012, because motorbikes are "dangerous"  >:(


Even more expensive in Australia. Don't know how they can justify these prices compared to USA and Europe.
Anyone have pricing for HongKong or South America?

ZERO S 8.5 $20,490
ZERO S 11.4 $23,390
ZERO SR $25,490
ZERO DS 11.4 $23,490
ZERO FX 5.7 $19,490
Title: Re: Are Zero Motorcycles overpriced?
Post by: Doctorbass on April 21, 2014, 08:20:08 AM
I think that if just like me you would ever have opened a Zero Battery you would understand how much complex this part really is!! wich translate directly to cost.

Motor on the S 2014 is sold  about 1200$, the controlelr is about the same price... the battery is using some of the best cell on the market and these are excellent desingn compare to the old 2011- Emoli cells. The battery design and parts reperesent alot i think and that's normal normal.

Just to give you an exemple .. on the 2012, the battery are made of EIG 20Ah cells. Every of these cells are sold about 65$ and probably that Zero are getting them half that price. every ZF9 battery are made of 18 x 6 =  108 cells and thatM's about 3500$ just for the cells !

Zero are continuously doing alot of ameliorations on their bike and over the last years they changed the frame few times over the last model wich translate directly  to higher cost for manufacturing.

I think that the price for these motorcycles is fair when taking account on how many amelioration they are making to their very nice bikes.

Dont forget that the maintnance for the Zero is minimum and this mean money in your pocket.

Over the entire life of the motorcycle, The total cost of a Zero compare with  the same performances ICE bike is less. no gas, no timimg adj, no filter, no oil change no gas! and cheaper insurance!

Doc


Title: Re: Are Zero Motorcycles overpriced?
Post by: benswing on April 21, 2014, 10:40:44 AM
I wonder if Zero can sell more bikes by lowering the MSRP and adding a battery pack rental option.

I'm very interested in this idea.  The battery is a significant part of the price, if they were able to lease it or offer a "Battery Assurance Plan" like Smart Cars, then it may be possible to bring the cost of the bike down significantly.  Zero would own the battery, but you would own the rest of the bike. 

I hope they seriously consider this kind of option since it would probably help them move significantly more bikes.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ZeroSinMA on April 21, 2014, 06:38:28 PM
I wonder if Zero can sell more bikes by lowering the MSRP and adding a battery pack rental option.

I'm very interested in this idea.  The battery is a significant part of the price, if they were able to lease it or offer a "Battery Assurance Plan" like Smart Cars, then it may be possible to bring the cost of the bike down significantly.  Zero would own the battery, but you would own the rest of the bike. 

I hope they seriously consider this kind of option since it would probably help them move significantly more bikes.

Bingo. However, they will take on the added cost of administration of the battery pack rental program. If properly priced, it should at least run on a break-even basis. Then they can reduce the up-front cost of the bike by at least $3K.
Title: Re: Are Zero Motorcycles overpriced?
Post by: protomech on April 21, 2014, 10:14:32 PM
$12500 Smart ED:

$25k base price
less $7500 federal rebate
less optional $5000 "Battery Assurance Plus" lease discount
= $12500

The Battery Assurance Plus program is an indefinite battery lease. It costs $80/month + taxes, and includes annual battery maintenance and a capacity guarantee.

One way to look at it is that you basically pay for the battery in 5 years. If you can finance the Smart ED at 0% interest for 60 months then the battery lease may not make financial sense.

However, another way to look at it is that the Smart ED with a leased battery is cheaper to buy outright than any gas Smart model, and it will almost certainly be less expensive to operate if driven regularly.

Smart gas costs approximately 10.6 cents per mile ($3.80/gal national average for 91 octane / 36 mpg combined). Call it 15 cents

Smart electric costs approximately 3.5 cents per mile ($0.11/kWh national average * 32 kWh/100 miles)

Smart electric saves $0.071/mile for fueling, so it'll probably be cheaper to drive 1000+ miles/month on electric than gas.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ZeroSinMA on April 22, 2014, 06:38:35 PM
$12500 Smart ED:

$25k base price
less $7500 federal rebate
less optional $5000 "Battery Assurance Plus" lease discount
= $12500

The Battery Assurance Plus program is an indefinite battery lease. It costs $80/month + taxes, and includes annual battery maintenance and a capacity guarantee.

One way to look at it is that you basically pay for the battery in 5 years. If you can finance the Smart ED at 0% interest for 60 months then the battery lease may not make financial sense.

However, another way to look at it is that the Smart ED with a leased battery is cheaper to buy outright than any gas Smart model, and it will almost certainly be less expensive to operate if driven regularly.

Smart gas costs approximately 10.6 cents per mile ($3.80/gal national average for 91 octane / 36 mpg combined). Call it 15 cents

Smart electric costs approximately 3.5 cents per mile ($0.11/kWh national average * 32 kWh/100 miles)

Smart electric saves $0.071/mile for fueling, so it'll probably be cheaper to drive 1000+ miles/month on electric than gas.

If Zero sold the Zero S for $9,995 and leased the battery for $49.95/month in perpetuity including replacement (if not abused, etc.), I bet they'd sell a lot  more of them and make more money, too. I can tell you right now my wife will fall for it, er, I mean go for me buying another one! 
Title: Re: Are Zero Motorcycles overpriced?
Post by: Richard230 on April 22, 2014, 08:44:17 PM
I think Zero could do that with the FX and its removable battery modules.  But I would imagine that the S and DS models would require a complete redesign to make their batteries replaceable by the owner. 

I know that I don't like the idea of paying any monthly fees after my initial purchase of a vehicle or anything else where I am not paying for an obvious service.  That is why I always pay cash for everything that I buy and never buy anything on credit.  Plus, once I buy something I never want to feel like the seller has me on the hook and will raise the monthly cost at will once I have taken the bait.  So I would not be a customer for battery leasing.  Personally, I would rather pay more upfront and own the batteries. 
Title: Re: Are Zero Motorcycles overpriced?
Post by: ultrarnr on April 22, 2014, 09:04:27 PM
Perhaps leasing the entire bike instead of just the battery? Do something similar to how cars are leased? Not sure the motorcycle community is ready for something like that though. With the rapidly evolving technology people may go for a 2-3 year lease option and then repeat with the latest model.

If you just lease the battery you will pay far more long term than if you just bought it up front. And what happens when you want to sell the bike after several years? The new buyer may rapidly end up paying more for the battery than the entire bike. Think about how appealing the battery leasing fees would be to a potential buyer.
Title: Re: Are Zero Motorcycles overpriced?
Post by: ZeroSinMA on April 22, 2014, 10:01:19 PM
The difficulty with leasing an electric bike is that the estimated residual value data required by law (at least in the US) in the lease agreement will reveal to the consumer the ridiculous depreciation rate on these things. None of us wants to know that up front, right?  :o
Title: Re: Are Zero Motorcycles overpriced?
Post by: NoiseBoy on April 22, 2014, 11:38:51 PM
I think Zero could do that with the FX and its removable battery modules.  But I would imagine that the S and DS models would require a complete redesign to make their batteries replaceable by the owner. 

I know that I don't like the idea of paying any monthly fees after my initial purchase of a vehicle or anything else where I am not paying for an obvious service.  That is why I always pay cash for everything that I buy and never buy anything on credit.  Plus, once I buy something I never want to feel like the seller has me on the hook and will raise the monthly cost at will once I have taken the bait.  So I would not be a customer for battery leasing.  Personally, I would rather pay more upfront and own the batteries.

I see your point Richard and excuse me for making presumptions but I would guess you are doing quite well financially.  Many (probably most) people don't have the capital available to buy something as expensive as a Zero in cash.  Having the ability to essentially insure the most valuable part of the bike against depreciation makes a lot of sense for people who are already stretching to buy a Zero.  Hire Purchase would give you the option to stay with your battery and buy it at the end of the term or continue paying each month but getting an upgrade to a newer battery.
Title: Re: Are Zero Motorcycles overpriced?
Post by: PL3 on April 23, 2014, 02:51:51 AM
What price are people actually paying "out the door" for 2014 models?
Title: Re: Are Zero Motorcycles overpriced?
Post by: Richard230 on April 23, 2014, 03:21:04 AM
What price are people actually paying "out the door" for 2014 models?

The out-the-door price for my 2014 Zero, with power tank, windshield and top box was about $21,000.  About what I would pay for a new BMW boxer (which seem to be selling very well) around here.

I can afford the price of a new Zero because I have my home paid off, have no other vices other than riding motorcycles, don't owe anyone any money, am a cheapskate about everything but motorcycles, live by myself, buy a new car once every 20 years, have a fat government pension and free full-coverage medical insurance (another government retirement benefit).  Plus, I only spend $30 a week on food.  It is all a matter of priorities.  ;)
Title: Re: Are Zero Motorcycles overpriced?
Post by: MostlyBonkers on April 23, 2014, 04:20:28 AM
It's a shame governments don't step in and help stimulate the market by providing proper subsidies to early adopters. These bikes would make a perfect replacement for thousands of commuter bikes and smoky 2 stroke scooters in many cities. Vastly higher sales would expedite EVs becoming mainstream. Economies of scale would kick in etc, etc.
Title: Re: Are Zero Motorcycles overpriced?
Post by: Richard230 on April 23, 2014, 04:41:30 AM
It's a shame governments don't step in and help stimulate the market by providing proper subsidies to early adopters. These bikes would make a perfect replacement for thousands of commuter bikes and smoky 2 stroke scooters in many cities. Vastly higher sales would expedite EVs becoming mainstream. Economies of scale would kick in etc, etc.

I just received a check for $900 from CA as a rebate for the purchase of my 2014 Zero.

There is still hope that last year's U.S. Federal IRS rebate for electric motorcycles of 10% of their cost will be continued when the Congress considers the Federal budget (and income tax deductions) later this year - probably after this year's elections.  I kind of expect them to just roll over the IRS code rather than try to make any changes for this year.
Title: Re: Are Zero Motorcycles overpriced?
Post by: MostlyBonkers on April 24, 2014, 03:32:34 AM

It's a shame governments don't step in and help stimulate the market by providing proper subsidies to early adopters. These bikes would make a perfect replacement for thousands of commuter bikes and smoky 2 stroke scooters in many cities. Vastly higher sales would expedite EVs becoming mainstream. Economies of scale would kick in etc, etc.

I just received a check for $900 from CA as a rebate for the purchase of my 2014 Zero.

There is still hope that last year's U.S. Federal IRS rebate for electric motorcycles of 10% of their cost will be continued when the Congress considers the Federal budget (and income tax deductions) later this year - probably after this year's elections.  I kind of expect them to just roll over the IRS code rather than try to make any changes for this year.

Better than a kick in the bum but a long way from making electric bikes cheaper than their petrol counterparts and thereby giving a proper incentive for the masses to go and buy them. IMHO the tipping point needs to come sooner rather than later. Once EVs are truly mainstream then the govt can reduce the subsidies and no doubt they'll find new ways of taxing motorists.
Title: Re: Are Zero Motorcycles overpriced?
Post by: benswing on April 24, 2014, 08:21:56 PM
BTW, I think it would be fair to change the title of this thread to "Electric" motorcycles instead of singling out Zero.  Particularly since both Zero and Brammo motorcycles are similarly priced. 

I would hope that a financing mechanism to lease the battery would bring down the price of both brands of bikes.
Title: Re: Are Zero Motorcycles overpriced?
Post by: Richard230 on April 24, 2014, 08:47:18 PM
BTW, I think it would be fair to change the title of this thread to "Electric" motorcycles instead of singling out Zero.  Particularly since both Zero and Brammo motorcycles are similarly priced. 

I would hope that a financing mechanism to lease the battery would bring down the price of both brands of bikes.

Brammo will be leasing their bikes (not their batteries) this year, so no doubt Zero and perhaps other motorcycle companies will be keeping an eye on that program to see how it works.  To my knowledge, no other motorcycle company has ever developed a leasing program for their vehicles.  I don't know why, but there must be a reason.  I can recall my BMW dealer lamenting that BMW should have a leasing program but he said they weren't interested.  He also wanted BMW to come up with a prepaid maintenance/servicing plan like some of the car dealers have, but that never happened either.   ???
Title: Re: Are Zero Motorcycles overpriced?
Post by: dkw12002 on April 24, 2014, 09:44:58 PM
I like to buy things rather than rent them. Then you don't have to deal with insurance either other than liability. If you rented the battery you would probably have to insure it since it isn't yours. If not, then if the bike is stolen or wrecked, you would still have to pay for the battery each month or have some settlement expense. Since the battery is really not a stand alone item but part of the bike, a lease of the entire operating bike would make more sense from the consumer's POV. I would still buy though. It is cheaper in the long run. 
Title: Re: Are Zero Motorcycles overpriced?
Post by: benswing on April 25, 2014, 01:55:13 AM
A reminder: here is the program we are looking at as a model. 

"Smart’s “Battery Assurance Plus” offer works like this. A customer interested in a Smart Electric Drive model could agree to lease the car for three years for a total of $139 a month, after a $1,999 down payment.

Of that total, $59 a month would be a payment on the “glider,” or the Smart’s body, suspension, tires and other hardware, says Mark Webster, general manager for Smart in the US.

The remaining $80 a month would be payment toward rental of the battery from Smart (or Daimler.) As part of that price, the customers gets Daimler/Smart’s guarantee that the battery will retain a certain level of charge and otherwise function properly. If the lithium-ion battery loses re-charging capacity, Daimler will replace it."
Title: Re: Are Zero Motorcycles overpriced?
Post by: NoiseBoy on April 25, 2014, 05:49:42 PM
$139 a month?  That is incredibly cheap.  Im paying £269 GBP per month over 3 years to buy my Zero.  If leasing was that cheap here I would definitely be interested.
Title: Re: Are Zero Motorcycles overpriced?
Post by: dkw12002 on April 26, 2014, 03:05:23 AM
$139 a month may or may not be a good deal. You would have to know the resale value of the bike after 1 year or however long the lease is for as well as the down payment, plus the fine print having to do with condition of the bike and whatever other conditions they write into the lease.

I buy a couple of new bikes and new cars every year but have never been tempted to lease since I figure the actuaries who figure out all that leasing stuff are smarter than me.
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 26, 2014, 09:18:04 AM
@dkw12002 ++++++  In the long run the consumer will lose in a lease.
Title: Re: Are Zero Motorcycles overpriced?
Post by: benswing on April 27, 2014, 05:17:23 AM
@dkw12002 ++++++  In the long run the consumer will lose in a lease.

Except when you are leasing the latest technology and want to upgrade quickly and easily in 2-3 years.  I would never lease a gas powered vehicle since the technology will not significantly change in the foreseeable future.  However, electric vehicles are much better to lease right now because you will probably want to upgrade your vehicle when the new ones come out.
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 27, 2014, 02:06:41 PM
Ben, I understand what you are saying. However, where I think it is a bad idea is that you will lose money in the long run. If you want a new one in a few years, you will do better to sell the zero. Im going to use made up numbers because I am to lazy to go look right now ok lol. If you lease for 3 years and pay $300 a month you will have spent $10800 on the bike. you will probably pay around $2000 to start with. Now if it is a $17000 bike you have spent $12800 on the bike. When you turn the bike in you get $0 back. Depending on the term of the lease you may have to pay more (this is very common). However, if you buy the bike, you will have spent 17823 (assuming you get a loan) on the bike. If you sell it to upgrade all you would need to do is sell it for $5500 (which means it depreciated 68%)and you are about $500 ahead by purchasing. If the new bikes depreciate that fast id say not to buy one, period. Leases are really for people who cannot afford something and the companies use this to take advantage of those of us who want to live outside our means i.e. the payment is lower. I have met you and know you are a very level headed, intelligent person and will make a good choice. I will say I may, possible have agreed when they 1st came out. But I don't think the SRs will depreciate as much. Ill even make a deal. If you have a SR in 3 years and you want to sell it for $5500 ill buy it (unless it is wrecked or wore out as you ride a LOT lol.
Title: Re: Are Zero Motorcycles overpriced?
Post by: MichaelJ on April 27, 2014, 02:53:23 PM
However, electric vehicles are much better to lease right now because you will probably want to upgrade your vehicle when the new ones come out.

I wonder if bigd and I are trying to say the same thing.

For some EVs, I agree that leasing makes a lot of sense.  I compared the Smart ED mentioned earlier in this thread, Brammo's lease calculation examples, and my LEAF lease.  Among the vehicles in this table, I believe that the LEAF is the best deal, because you're only effectively renting the car, paying less than 20% of MSRP--you could pretend that you bought the car and then sold it for 80% of MSRP two years later.  In contrast, the fantasy of pretending to have bought it and resold it at a favorable price is completely shattered by the example Brammo Empulse R lease (http://www.brammo.com/lease-program/): you'll have recovered less than 20% of MSRP.  Seems like one might as well make the additional 8 or so payments (assuming the payoff price is approximately equal to MSRP minus Total lease payments) to own the bike and then see how much can be recovered with a trade-in or a private sale.

EV $ Down Months $/Month Total lease payments MSRP Remainder % of MSRP paid by lease Months to pay remainder
Brammo Empulse R $2,469.35 48 $299.00 $16,821.35 $18,995.00 (http://www.brammo.com/lease-program/) $2,173.65 88.6% 8
Brammo Empulse $2,209.35 48 $269.00 $15,121.35 $16,995.00 (http://www.brammo.com/lease-program/) $1,873.65 89.0% 7
Brammo Empulse R $2,469.35 36 $325.00 $14,169.35 $18,995.00 (http://www.brammo.com/lease-program/) $4,825.65 74.6% 15
Brammo Empulse $2,209.35 36 $299.00 $12,973.35 $16,995.00 (http://www.brammo.com/lease-program/) $4,021.65 76.3% 14
Smart For-Two ED $1,999.00 36 $139.00 $7,003.00 $12,490.00 (http://www.smartusa.com/models/electric-drive/overview.aspx/) $5,487.00 56.1% 40
2014 Nissan LEAF SL $1,999.00 36 $295.00 $12,619.00 $35,020.00 $22,401.00 36.0% 76
Smart For-Two ED $1,999.00 36 $139.00 $7,003.00 $25,000.00 (http://en.ta64.smart.com/is-bin/INTERSHOP.enfinity/WFS/mpc-us-content-Site/en_EN/-/USD/Smart_CC-Line?lineCode=A03edc) $17,997.00 28.0% 130
2012 Nissan LEAF SL $2,500.00 24 $158.54 $6,304.96 $34,840.00 $28,535.04 18.1% 180

NOTE:  I can't find a permalink for the LEAF quotes.  Instead, go to NissanUSA.com (http://www.nissanusa.com), click Build Your Nissan, then click the LEAF.
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 28, 2014, 12:49:41 AM
2014 Nissan LEAF SL  $1,999.00  36  $295.00  $12,619.00 $35,020.00  $$22,401.00 Now remember the rebate $7500 that Nissan gets since it is a lease $12619+$7500=$20119 paid and a balance of $14901 the resale is predicted to be 40% or $14008. However, this is the kicker, it is a open ended lease. "Open-Ended Lease   In this type of lease, the customer pays the difference between the anticipated residual value and the market value of your car at the end of its lease term. Residual Value- The anticipated value of the car at the end of the lease is the residual value. Generally, this goes down because all cars use value over time- this is called depreciation." I did notice this at the end of the lease"A disposition fee is due at termination of lease term." This may be another name for open end lease but im not sure. You may be able to tell me a number given to you but this is what I found on that statement "As its name implies, this covers the dealer's cost to dispose of the car. These fees usually are several hundred dollars." I really hope it works out for you but they are in it to make money so I don't see how they would do it in a way that cost them more.
Title: Re: Are Zero Motorcycles overpriced?
Post by: MichaelJ on April 28, 2014, 08:19:05 AM
Yes, we'll see how it works out, come time for the end of the lease, but the point is how different the lease terms are.
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 28, 2014, 08:47:33 AM
If you don't mind me asking, when is your lease up?
Title: Re: Are Zero Motorcycles overpriced?
Post by: MichaelJ on April 28, 2014, 02:32:49 PM
I hope this is not too off-topic for the forum.  I'll try to keep it relevant.

The LEAF lease is up in October.  This is important to my wife and I because we're going to be making a number of important decisions about our vehicle situation this year.

We each have one ICE motorcycle and one car (ICE car and LEAF) and then there's my Current Motor (http://www.currentmotor.com) e-scooter.  A family member might buy our ICE car from us, leaving us with zero cars at the end of the year.  Because each of us are considering replacing our ICE motorcycles with EVs, I'm reading the extremely helpful posts this forum and BrammoForum (http://www.brammoforum.com) to learn more about these e-bikes.  However, keeping around some kind of vehicle that's safe to ride/drive in winter and can carry passengers is also important to us.  Our EV options include extending the LEAF lease, leveraging the $1,000 Nissan loyalty credit to lease a newer LEAF, or leasing another plug-in EV sedan such as the Ford Focus Electric (http://insideevs.com/focus-electric-better-competes-with-a-new-lease/).  A Tesla is out of our price range.  A Smart For Two can't carry my wife plus two passengers.

Then there's the deposit my wife put down for a Lit C-1 (http://litmotors.com/c1/), her potential ICE motorcycle replacement.  And finally, to bring this thread back on-topic, I've recently test ridden both a 2014 Zero S and a 2014 Brammo Empulse R and am torn between the two.  What's stopping me from choosing is that I haven't yet saved up enough for either one, and range--while more than plenty for my commute--might not be enough for the longer (100 mile+) local road trips I do every year.  The dealerships around here will only give me about $3,500 for my ICE cruiser.  I'd rather not give up the ability to ride with my wife on road trips by trading in a $3,500 ICE bike with 120 miles of range and 5-minute fuel-up time for a $15K Zero S 11.4 with 80 miles of range and 8-hour recharge time @ L1 and L2.  Adding the CHAdeMO kit or multiple quick chargers or ELCON chargers to the Zero would add ~$2K.  So why not keep the ICE bike for long trips and wait a little longer to save up for the e-bike?  Because I don't have room in the garage for another bike...unless one of you knows someone who could help me out by purchasing my Current Motor (http://www.currentmotor.com) e-scooter?  :)
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 29, 2014, 07:57:46 AM
I will be glad to offer my opinion on this but some will not like it LOL. I would ask 1st do you have a child(ren)? Not trying to get to personal but I would not even consider not having an ICE car if I had a child. In a few years when the infrastructure and range improves I may change my mind. I think, If you are set on having 2 EV cars, I would hold onto the ICE until Tesla comes out with their GenIII car (just don't know when that will be). About the Motorcycles. I have said on here when I get my SR it will be my daily rider. I will keep my ICE bike for the long weekend rides. I don't know you finances and such so Im stating this on my situation. But keeping the ICE bike is up to you. To sum it up IMHO id keep both cars you have now - can you not buy out the Leaf at the end of the lease? get the 2 Electric bikes, sell the wifes ICE bike and the e-scooter (no need for it with the Zero). The only question to me is why are you getting rid of the ICE car?
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 29, 2014, 08:10:09 AM
Now about my question concerning when the leaf lease is up. I would really like it if you got back to me and let me know how that turns out. I would consider it, if the numbers work out. However, I told you my apprehension and want to know if I am incorrect. Thanks
Title: Re: Are Zero Motorcycles overpriced?
Post by: MichaelJ on April 29, 2014, 01:03:16 PM
Hi bigd,

thanks for asking.  No children.  Regarding when the lease ends, what question are you looking for an answer to, by the way?  The disposition fee is between $300-400, but I hear it's typically waived if the customer extends the lease or leases another Nissan vehicle.

Why sell the ICE car?  Not because we want to, but because we have a family member who needs it more than we do, and who lives in an EV-unfriendly area.  We don't go more than 50-80 miles away from home in it anymore, so the ICE bikes remain our long-distance road-trip vehicles.

So, where do the e-bikes come in?  The e-scooter is adequate for my daily commuting, so I don't need to get a new e-bike, but because the long-term goal is to make both the e-scooter and the ICE bike redundant, I need to save up until the end of the year for the e-bike with the longest range and shortest charge time.  That's currently the 2014 Zero S 14.2 ($18K) + CHAdeMO (+$2K).  However, as many on this forum have pointed out, L2 charging is more widely available, but slower, so either equip the Zero with one or two beefy but bulky quick chargers (+$2K) that leave little room for storing a few changes of clothing, or get a Brammo Empulse ($17K) with built-in L2 charging support (3.5 hours from 0-100% or 2 hours from 20-80%) and add $1K to buy their roomy new lockable and detachable Givi side cases (http://www.brammo.com/documents/accessory-catalog_Givi-bags_eblast%20copy.pdf) that almost fit my fat helmet but certainly fit a week's worth of clothing and maybe a few souvenirs.
Title: Re: Are Zero Motorcycles overpriced?
Post by: bigd on April 30, 2014, 05:51:37 AM
I would ask how long can you make it with just the Leaf as your only car? If a while, id say sell the ICE car. Sell her ICE bike and the scooter, have you checked to see what kind of trade in your could get on the scooter? Purchase the E Bike as soon as you can to get a good feel for it (her e bike is just icing on the cake). Personally I am looking at one more than other and in a PM would discus that. Don't want to hurt anyone's feeling. This would give you a little time to ponder on the next car and have a chance to see if you like the E bike for everyday. Hey if you only have one ICE bike in the garage, you are greener than most  :)