Quotes based on NMAC Financing?

[morlglums]

I am collecting quotes on MY'15 S from local dealerships. For a stripped model without the charge package (I don't have it on my MY'13 that I currently lease) the numbers are around $21.5k. This seems like a great price to me, putting the car at ~14k after the tax credit. Considering that it would cost me at least $12.5k to buy out my current lease, buying new makes more sense.

The one hiccup is that these quotes are based on financing through NMAC.? They assure me I could get a 0% APR loan, but said I can't just show up with a check and buy the car outright. I am wary of this and how it would affect the tax credit, and would rather just pay cash. If I were to finance, I would feel more comfortable going through my credit union.

What risks are there using NMAC financing. Is it truly 0% APR? It seems silly to me that they would give me a loan instead of just taking the full amount up front....

-Morgan

 

[morlglums]

Well I went in yesterday and did the deal. $0 down 0% APY. It all looked pretty straightforward. They had everything ready for me to sign, so I spent only 21 minutes in dealership before driving away in my new Leaf. I'll post the details in another thread.

-M

 

[BakoDuck]

I also purchased a new 2015 SV and the dealer discount was contingent on taking out a loan with NMAC. However, I can pay off the loan after making three payments. Minimal hassle to get the $5,000 dealer discount, on top of the Nissan $5,000 rebate.

My base level SV was $23,450 after the two discounts. California will also give me a $2,500 rebate and a local air district will give me a $3,000 rebate, on top of the $7,500 federal tax credit.

All the discounts, rebates and tax credits result in $23,000 discounts on a $33,450 car! Easy decision to buy new versus used.

 

[DNAinaGoodWay]

I think they want you to finance in the hopes you will miss a payment and they can up your rate astronomically. But if your credit is good enough for 0%, that's unlikely anyway, so I'm probably wrong. sure, you can pay it off, but at 0%, meh, why bother?

 

[RonDawg]

I think they want you to finance in the hopes you will miss a payment and they can up your rate astronomically.

Unlike with revolving credit (i.e. credit cards), it doesn't work that way with car loans and leases. Now if you miss payments, on top of dinging your credit rating, they can impose a late payment fee for each payment missed, and if you miss too many they can repo the car. But they can't increase your interest rate/money factor while in the middle of the contract, unless it is a variable APR, but I don't think those are offered anymore, if ever on a car loan.

I do agree with you that you shouldn't pay off a 0% loan early. It's free money, and even at today's paltry savings interest rates you'll be (slightly) better off financially by putting that money into savings. The only time I would pay it off early is if you will be applying for a large amount of credit (such as a mortgage) and you don't want that car payment's influence on your debt:income ratio to affect how much you can borrow.

 

[pncguy]

... Minimal hassle to get the $5,000 dealer discount, on top of the Nissan $5,000 rebate...

Can you please tell me how you got a $5k dealer discount AND the $5k cash for financing?

 

[LeftieBiker]

Well I went in yesterday and did the deal. $0 down 0% APY. It all looked pretty straightforward. They had everything ready for me to sign, so I spent only 21 minutes in dealership before driving away in my new Leaf. I'll post the details in another thread.

-M

IIRC, the S still has the 3.3kw charger if the Charge Package isn't added. Were you aware of this?

And, for that matter, am I correct, folks?

 

[BakoDuck]

... Minimal hassle to get the $5,000 dealer discount, on top of the Nissan $5,000 rebate...

Can you please tell me how you got a $5k dealer discount AND the $5k cash for financing?

My negotiated price with the dealer I used included the $5k dealer discount and another $5k for financing with them at 3%. I did not get the 0% financing for 72 months that others received. I am only required to make 3 payments before I can pay off the loan in full. I did not mind the temporary finance arrangement to get another $5k off the price. I intended to just pay it off anyway.