Nissan offers commitment-free financing plan for would-be hesitant EV buyers

New Nissan LEAF offers not only zero-emissions, but also a commitment-free financing option. (Photo courtesy of http://www.flickr.com/photos/traftery/4906783541/)

Along with it's heart-tugging new commercial (who can't relate with the plight of a cuddly polar bear?), Nissan has also rolled out a commitment-free financing plan for buyers interested in purchasing a LEAF, Nissan's new zero-emissions electric vehicle. Zero emissions AND zero commitment? Sounds like a perfect relationship ... but what's the catch?

At the 2010 Paris Motor Show,  Nissan confirmed that it would offer the car to consumers under a personal contract purchasing (PCP) plan as an alternative to buying the car outright. This PCP plan guarantees a minimum valuation of the car at the end of three years, while allowing the buyer to pay for a proportion of the car in installments during those three years. At the end of that period, the buyer can either pay the balance of the initial purchase cost and keep the car, return the car without penalty if the residual value (the car’s projected worth at the end of the three years) has fallen below the guaranteed price, or return the car and keep the difference between the residual value and the remaining balance to be paid. 

In an earlier article written on Sept.3 for gigaom.com,  Larry Dominique, vice president of product planning for Nissan North America, told Ward's that Nissan will need “a little bit of time to convince the banks and ALGs of the world” that the LEAF has strong long-term value and good technology. With the SL model starting at $26,220 after tax savings and the SV model starting at $25,280 after tax savings, the PCP plan seems like a good way to get buyers on board who might have been more hesitant to buy an EV. We're sure the polar bears will appreciate the leap of faith into the EV world, whether one personally thanks you or not.