Nissan's Smart Strategy Regarding LEAF Inventory is Not a Crisis

Nissan Motor Acceptance Corporation (NMAC), which is an independent subsidiary of Nissan Motor Corporation (NMC), is responsible for customer leasing programs and in effect buys new cars from the parent company and then leases them to retail and fleet customers. As with any organization that buys and leases assets, part of the process is that at the end of the lease period they must liquidate that asset. In order to liquidate the asset, in this case a LEAF coming off of lease, they must decide on what the value, or residual, of the asset will be at that point in time.