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FINANCE 101

NMAC offers a wide array of financing options uniquely suited to satisfying
the requests and requirements of commercial operators.

FINANCING LEASING
Definition The customer makes a down payment on the cost and pays the balance in monthly payments over the term of the loan. The customer only pays for a portion of a vehicle's cost. The portion is paid in monthly payments over the term of the lease. The portion of the vehicle's cost that is not paid by the customer is called the residual value. There are often times smaller monthly payments with leasing.
Monthly Payment Includes principal payment, which reduces the amount owed, and an interest payment. Only interest payment is deductible as a business expense[*]. Subject to lease terms, monthly payment could be reported as either an operating or capital expense. Consult with your professional tax advisor to discuss which option best serves your company's financial standing.
Depreciation Depreciation of the vehicle during its lifetime is normally tracked as a separate expense for tax purposes[*]. The price of the vehicle and its residual value at the end of the lease is important in leasing because it determines the amount of the monthly payment.
Payoff Customer owns vehicle outright and can continue to use it or sell it. Subject to lease terms, the customer can either trade, return vehicle for disposition, or purchase the leased vehicle at the contracturally negotiated price.
Mileage You may drive as many miles as you want. Excessive wear will lower the vehicle's trade-in or resale value. Subject to lease terms, open-ended leases (e.g. TRAC Lease) contain no mileage restrictions. Close-ended, walk-away leases (e.g. Signature Lease) allow up to 15,000 miles per year or 1,250 miles per month.
Wear and Use No charges for vehicle wear and use. Excessive wear will lower the vehicle's trade-in or resale value. A normal amount of wear and use is covered. You are responsible for excess wear unless vehicle is purchased at the end.
  • Q. Why should I choose finance over leasing?
    A.
    • If usage patterns and specialty equipment disqualify the vehicle for a lease
    • If cash position of company favors purchasing over leasing
    • Tax advantages associated with leasing can not be captured or deferred indefinitely[*]
    • Upon payoff, customer owns the vehicle outright
  • Q. Why should I choose leasing over finance?
    A.
    • Lower total cost of ownership
    • When accounting treatments offer potential tax and capital expense advantages[*]
    • Flexible terms to match requirements of fleet management policies
    • Multiple end-of-lease options help manage capital expenditures
  • Q. What makes more sense for my business?
    A.

    Consider Mileage, Application, Specifications, and Terms.

    Or:

    • The kind of business you're in and the number of miles anticipated during the vehicle's service life. This usually affects the financing decision, particularly with leases.
    • How the vehicle will be used as the specific use of the vehicle may be very important in the financing decision. Vehicles that are subject to a great deal of wear and tear may need special purchase or lease arrangements.
    • The options that you would like to include as the exact vehicle configuration, including accessories and upfitting will influence the financing decision.
    • The Length of time you think you will keep the vehicle as the time the vehicle is expected to be in service is important to financing.
  • Q. What are some factors that affect how the lease residual is calculated or factors that I should consider when determining if leasing is right for my business?
    A.
    • Expected average annual mileage
    • Expected use
    • Number of months in the lease
    • Make or model of vehicle
    • Resale history of similar make vehicles
  • Q. What are my options at lease termination?
    A.

    Subject to lease terms and vary by lease product

  • Q. What is the the Lease Factor?
    A.

    Factors that affect how the lease residual is calculated.

  • Q. What is the Lease Term?
    A.

    The Period of time for which a lease agreement is written is called the lease term.

  • Q. What does MAST stand for?
    A.
    • Mileage
    • Application
    • Specifications
    • Terms (number of months)
  • Q. What does TRAC Leasing mean?
    A.

    A TRAC Lease is used for vehicles used more than 50% of the time in the trade or business of the customer.

  • Q. What is a Line of Credit?
    A.

    A Line of Credit or LOC can streamline the lease/purchase process and should be considered the first step in each commercial vehicle acquisition discussion.

  • Q. What does NMAC stand for?
    A.

    Nissan Motor Acceptance Corporation (NMAC), including its Infiniti Financial Services (IFS) division, is the automotive financial services arm of Nissan North America. NMAC's primary emphasis is to purchase from its Nissan and Infiniti dealers retail and lease contracts for their customers. NMAC also provides wholesale inventory and capital and mortgage loan financing to Nissan and Infiniti dealers. The company offers financing for the complete line of Nissan and Infiniti vehicles sold in the United States.

  • Q. What are some other things that I should consider when deciding what makes more sense for my business?
    A.

    Besides the finance or lease payments, you should also consider the price of gas, vehicle maintenance, insurance payments and any other miscellaneous costs associated with your business.

INQUIRIES

Please contact us if you have questions about your NMAC loan or lease account.

NMAC-financed loan or lease[*]:

Nissan Motor Acceptance Corp. (NMAC) For Retail Loan Customers:
(800) 456-6622

For Lease Customers:
(800) 777-7018

7:00 a.m. to 7:00 p.m., Central Time
Monday through Friday

NMAC Mailing Address
NMAC
P.O. Box 660360
Dallas, TX 75266