Nissan Gave the Frontier a 99% Residual Value ($171/Month Lease at MSRP)

February Update: NMAC lowered the residual value of Frontier Crew Cab S 4x4 by one percentage point—from 99% to 98%. This will slightly increase the cost of a lease compared to January, but it’s still the highest residual value of any lease program today, and one of the cheapest trucks to lease.

This month, Nissan, through their captive finance arm NMAC, gave their 2022 Frontier Crew Cab S 4x4 midsize pick-up truck an unprecedented 18-month residual value of 99 percent.

This means that NMAC estimates their truck will still retain 99 percent of its value at the end of an 18-month lease.

In theory, this could result in an extremely cheap lease. The cost of a lease is generally dictated by the depreciation cost. The higher the residual value, the cheaper the lease.

With a 99 percent residual value, this $33,590 MSRP truck would only depreciate by $336 after 18 months of use, equivalent to just $19 per month. That’s unheard of!

Caveat 1: Don’t Forget Finance Charges

With all that said, don’t expect a monthly payment of $19 per month.

A monthly lease payment is comprised of both depreciation and a finance charge. In this scenario, NMAC paired the Frontier’s excellent residual value with a truly terrible money factor of .00227, equivalent to 5.45% APR.

This high money factor results in a monthly finance cost of $152 per month. Add this to the monthly depreciation cost of $19, and you get a hypothetical monthly lease payment of $171 per month, plus tax.

The first month’s payment, bank fee, and registration fees would be due at signing.

Caveat 2: Dealer Mark-Ups, Doc Fees, and Add-Ons

A lease payment of $171 per month still sounds excellent. But the challenge is finding a dealer who will actually sell one at the Manufacturer’s Suggested Retail Price (MSRP) — without a bunch of profit-lining mark-ups, fees, and add-ons.

Due to a global semiconductor shortage, vehicle inventories are scant. Most Nissan dealers are in a position to charge an Additional Dealer Markup (ADM), above MSRP, to make up for the lost profit they would otherwise get with more inventory.

Some Nissan dealerships are adding aftermarket accessories, like paint protection, mud flaps, and window tinting, which cannot be residualized and further add to the cost of the lease.

The dealer’s F&I department might mark-up the money factor above NMAC’s .00227 rate, resulting in even higher finance charges.

The Takeaway

In sum, a 2022 Nissan Frontier lease will likely end up costing much more than you’d expect from a truck with a 99 percent residual value.

That being said, here are a few recent examples of successful 2022 Nissan Frontier leases signed by the Leasehackr community:

Most of these were pure MSRP deals (no markup!), which will be extremely difficult to replicate given the inventory shortage and how notoriously sketchy Nissan dealers tend to be.

Have you been shopping for a truck lately? Share your experiences and join the conversation on Leasehackr today.

Post Edited: February 5, 2022

Latest DealsLeasehackrNissan, Frontier