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through Nissan you can get? I am wanting to purchase the 2013 Altima. Have perfect credit.....Should I finance with Nissan or a bank? Love this car....
 

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It will depend on the region. They gave us $500 for financing @ 2.99% for 60 months.

Gonna refinance it later anyways.
 

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I have what I consider great credit (FICO upper 790s to lower 800s), but only managed to get 4.49% for 48 months and $6000 down on a 2.5SL :( I took it anyway for the $500 rebate, and will refinance at my credit union.
 

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I got 2.45% and a $500 incentive for 48 months a few days ago on a new Maxima at the dealer from Nissan NMAC. They beat my credit union rate (2.75%) and State Farm (2.59%). Perhaps mentioning a lower rate you got elsewhere will help. I was quoted a lot higher rates until I told them my CU rate. It was great doing all the loan processing right at the dealer. I should mention that I only financed about $12k of the car.


Greg
 

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Wow

Wonder why it is so different at different places? I would think credit is credit no matter what region you are in....
 

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I've included a snap of the NMAC I was offered by the Sales Manager when I was getting ready to make the leap. The credit check was all that was needed, no down or anything.

The co-op as of last week is giving a rate of either:
5 years or 6 years @ 2.39%

Nissan by comparison is 2.49-2.99% with a T0 qualification.

Hope that helps!
 

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Oh wow...

through Nissan you can get? I am wanting to purchase the 2013 Altima. Have perfect credit.....Should I finance with Nissan or a bank? Love this car....
...what a good, but complicated, question! I've written lots on this before, so check out my other posts if you care to.

What I'll say here is a synopsis: There are all sorts of rates from all sorts of lenders for all sorts of buyers with all sorts of credit scores. If you finance through the dealer (i.e., have the dealer arrange it for you), you are actually using the dealer as a middleman. They make a profit off of this work. So, you will usually never know what the lowest rate is (other than 0% of course) unless you were the finance manager looking at rates at any given day. The truth is, the lenders will promote ("sell") their loans to dealers at below-market rates to get business (they want you to owe them money for years). The dealer is free to mark up any rate, regardless of your credit score. Also, if you think your score of 800 (anything over 760 is "excellent/top tier") will net you a better rate, that's not necessarily true. Why? Because the financing part of a car sale (the "back end") is one way for the dealer to make money, and a lot of money at that.

My advise is to shop for your own loans at banks, credit unions, and online (CapitalOne is the biggest such lender) before you go in to the dealership. Make it clear that you will pay cash or get a cashier's check from a lender to pay for the car. This will put you in a great position at the end of the sale, especially if you've driven a hard bargain up to the end (i.e., the numbers are on the contract). The dealer will likely want to make some profit on the financing (because that profit can be more than they're making on the car itself), so don't be surprised when you're offered some more off the cost of the car or a lower rate (take the lower rate, not the discount unless you can do calculations really fast in your head) to close the sale. That's when you'll get the answer to your question.

I hope this helps someone. If it doesn't "talk to you," remember it was free. :)

Good luck.
 

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Hmmm...

I have what I consider great credit (FICO upper 790s to lower 800s), but only managed to get 4.49% for 48 months and $6000 down on a 2.5SL :( I took it anyway for the $500 rebate, and will refinance at my credit union.
I agree you should refinance. If the dealer was able to get you to sign a note for 4.49% for that term and that amount down, they made some extra money off of you...way more than the $500 rebate.

See my other posting about credit scores. Here's some more info from an insider (that's me): if your average score (or score from the company the dealer has chosen to buy reports from) is at least 720, you'll get the best rates. But, the dealer will make lots more by telling you otherwise. I hope it doesn't hurt your feelings to hear this (I'm just using you as an example, not criticizing you), but with the terms you mentioned, I'd guess the dealer earned about $1200 from the lender (a bit less if it was NMAC). Just keep one thing in mind when shopping for a car....the financing is just like any other option on the car or trim level....the dealer can sell it for whatever they can get for it.

I hope this helps. Good luck. :)
 

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I agree you should refinance. If the dealer was able to get you to sign a note for 4.49% for that term and that amount down, they made some extra money off of you...way more than the $500 rebate
That's fine with me if they made some extra money--as far as I see, the money didn't come out of my pocket :) I had negotiated a price for the car, and had financing arranged with my credit union already. But if I went with NMAC, I'd get an extra $500 off. I didn't try to negotiate the interest rate; perhaps I should've, but I figured I'd just refi anyways.

And I might not've been clear about the down payment... I didn't have to put anything down, but I wanted to put $6k down.
 

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I got approved at 1.99 at my credit union for 48 months or 2.49 up to 72 months. Nissan said they could match it, but I didn't end up financing because it would have messed with my refinance on my house. I sold off 4 cars I had and some other stuff instead.
 

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Comments...

That's fine with me if they made some extra money--as far as I see, the money didn't come out of my pocket :) I had negotiated a price for the car, and had financing arranged with my credit union already. But if I went with NMAC, I'd get an extra $500 off. I didn't try to negotiate the interest rate; perhaps I should've, but I figured I'd just refi anyways.

And I might not've been clear about the down payment... I didn't have to put anything down, but I wanted to put $6k down.
Glad to hear your happy ending. :)

The "extra money" would have come had you paid the entire loan back at the higher-than-market rate. That's where the $500 comes from. I agree you should have asked for a lower rate. The current "good credit" rate is around 3%. The amount down usually has little to do with the interest rate offered...but it can make a lender happier to lend to you if your credit score is below 720.

Thanks for clarifying your situation. Good luck.
 

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Actually, the money down can reduce your rate by 50 basis points. If you look at the pdf that someone posted above, you can get the 2.49% down to 1.99% if you put some money down. It's called their Signature Equity advantage.
 

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You're right...

Actually, the money down can reduce your rate by 50 basis points. If you look at the pdf that someone posted above, you can get the 2.49% down to 1.99% if you put some money down. It's called their Signature Equity advantage.
Hey "juventussoccr", thanks for the clarification. My point was that usually the amount of money or equity one puts down has little or no effect on rate, even if it "looks" otherwise. I know this can be confusing, so I'll explain in case it interests you or someone else.

Sometimes lenders (including NMAC) will offer what looks to be a better rate deal if a customer invests a good amount of equity. The true point of this offering (such as the one you mentioned) is to stimulate customers to put more money "on the table" (because many people want to buy a car with little investment nowadays even if they have some cash). But does it mean that you are getting the "best" deal? Maybe so, but likely not. I'll explain...

The real issue in lending is the risk to the lender. With some equity invested in a loan, the lender has less risk, so they might choose to offer that "50 basis points" (meaning .5%) as a stimulation to get some money on the table. (Interestingly, this stimulation amounts to relatively little money when rates are as low as they are now.) What the lender is really focusing on is your credit score. If you have a good score (and "good" can mean slightly different things), equity can mean little or even nothing; if your score is marginal, some equity can get you the loan you otherwise wouldn't be offered regardless of your situation. In other words, some people cannot buy a car without equity, many more can buy a car with little or no equity. Any "stimulation" offered such as the nicely named "Signature Equity Advantage" you mentioned just helps give customers who actually qualify for the lowest loan rate (say, 2.49%) a reason to invest some of their cash. The small gain for the customer equates to a slightly lower the risk for the lender. It also equates to more money in the dealer's pocket. I'll explain...

I've used the word "lender" in my explanation above for simplicity. But what I actually am thinking about is the dealer's finance manager (the person you talk to when the paperwork is done). This person is responsible for making money for the dealership "on the back end." He/she will do anything they can to make money, even if it looks like they are giving you something. Why give you something? Because they make money doing so. In the example we've been talking about, by getting you to put down more money in order to get that .5% "Advantage" loan, the finance person made some extra money for the dealership because they get paid more by the actual lender (i.e., NMAC or bank or CU) for selling you that particular loan. If the dealer is pushing an odd lender (such as a local credit union you've never heard of), it's because they have been offered big incentives to sell their loans. You may even be told you "don't qualify" for as low a rate from other lenders. I know that sounds scary and may help fuel the usual distrust between buyers and dealers, but I actually hope it does the opposite. I'm a firm believer in the idea that with more information in your hands, you can make better choices. Also, it should go without saying, but I'll say it now: Everyone has the right to make a living, even those who are selling cars.:)

Because the auto financing business is so complicated, and because relatively few people know its inside workings, the advise I have given on this forum before is simple. Here it is again: Shop for a loan before you get to the dealer. Tell the dealer after you settle on the sales price that you are willing to discuss loan rates if they can better the bids you already have. If your FICO score is good enough, you will be offered something better, trust me. If you are a particularly trusted customer (i.e., one that's done business before and/or well-liked/highly valued by the dealership), you will find that the time you spend with the finance person is short. Ask and they'll very likely tell you what the lowest rate you qualify for is in terms of the various loans they are selling and the profit they make from selling it to you. While it may appear that the captive lenders (e.g., NMAC or GMAC, etc.) offer the best rates to dealers and buyers, that may not be case (other than a 0% loan which is actually a form of a rebate.) For example, if Nissan is offering an extra $500 to use NMAC, you can bet they've made up that difference--and more--somewhere else in the deal. It's as simple (or as complicated) as that. (One personal story: when I bought our '13 Altima, the finance guy--whom I know well and who likes me--told me outright which lender he was selling that week had both the lowest rate for me and the highest profit for the dealership. I asked and was told that the profit for selling me that loan was $1600 because it was "a new credit union that wants into the business in this state." The profit to the dealer if I choose NMAC as the lender at the same interest rate was $400. Hmm. Four times the profit. Interesting. I took the loan that made the dealer the most money. Smiles all around. :):):))

I sincerely hope that the time I've taken to explain all this stuff is helpful to someone out there. If not, remember it was free. :)

Good luck.
 

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Thanks for the explanation. I had an offer from my local credit union of a 1.99% rate, but when they told me NMAC could give me 2.49% and 1,000 in rebates, I would come out ahead with the interest paid on the lifetime of the loan going with NMAC.

Your post will definitely help a lot of people :)
 

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I was told by nissan that after making a few payments to Nissan, I can then refi with my credit union and get the lower interest rate. This way I get the rebate and the lower interest. I'll probably do this, it was on my wife's 2012 Juke, and I think I've made enough payments now that I can have the credit union do the loan and pay off Nissan.
 

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Good choice

Thanks for the explanation. I had an offer from my local credit union of a 1.99% rate, but when they told me NMAC could give me 2.49% and 1,000 in rebates, I would come out ahead with the interest paid on the lifetime of the loan going with NMAC.

Your post will definitely help a lot of people :)
Sounds like you made the right choice. Your post also points out something that I've not discussed at any length (and won't say too much about now).

Sometimes you'll be offered something in the form of a rebate (cash) that you can't/shouldn't refuse. In most cases, Nissan's rebates do not require using NMAC financing, but they will at times have bundling offers (i.e., multiple "rebates") in the form of extra money for using their captive financing. The only gotcha is to do a bit of arithmetic to see if the rebate (in your case, $1000) is worth paying an extra .5% for the typical 5-year loan (you bet it is!). Again, when the "top tier" rates are as low as they are now for new car loans, a .5% difference means very little. I say take the money (that extra $1000 "rebate") and run!

The numbers can be very different if someone's taking a 5.99% rate for that $500 (i.e., they either haven't done their homework before shopping at the dealer and so don't know they are being offered an unreasonably high rate OR they don't qualify for a lower rate and so that extra $500 is actually a welcome gift from Nissan). As I said, there's lots to consider in terms of all the possible situations. Sorry I'm only scratching the surface with this short reply.

Good job. Thanks for the kind words, too. :)

Peace.
 

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I was told by nissan that after making a few payments to Nissan, I can then refi with my credit union and get the lower interest rate. This way I get the rebate and the lower interest. I'll probably do this, it was on my wife's 2012 Juke, and I think I've made enough payments now that I can have the credit union do the loan and pay off Nissan.
Hmm, why do you have to make a few payments before refinancing? Maybe Nissan just wants you to pay a few months interest or something? :) The paperwork I signed says, "If you pay all that you owe early, you will not have to pay a penalty," and I think that's standard (at least none of the loans I've gotten have had a prepayment penalty, not even my home mortgage, although I suppose they must exist).
 

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I was told by nissan that after making a few payments to Nissan, I can then refi with my credit union and get the lower interest rate. This way I get the rebate and the lower interest. I'll probably do this, it was on my wife's 2012 Juke, and I think I've made enough payments now that I can have the credit union do the loan and pay off Nissan.
I highly doubt it...Once you roll it off the lot your credit union will only re-fi at a USED car finance rate which will definately be a couple points higher than new.
 
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