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Nissan Is Going To Pay Dealers More To Steer Customers Toward 84 Or 96-Month Loans



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 1 week ago '04        #1
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JayR04 
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Nissan Is Going To Pay Dealers More To Steer Customers Toward 84 Or 96-Month Loans
 

 
First, Nissan doubles down on subprime lending. Now it’s willing to pay dealers more money when customers take out longer terms. This is the new plan Nissan has laid out for dealers, according to a report from Cars Direct.


Nissan is calling this the future of NMAC dealer compensation, referring to its finance arm, Nissan Motor Acceptance Corporation. In the plan, when customers finance their loans through NMAC Nissan will pay dealers 1 percent of the total amount financed.

But it gets better.

Cars Direct says that in the fine print you’ll learn dealers will get as much as $450 when customers go with 84-month financing. Nissan seems to be willing to steer people into financially precarious loans for the benefit of dealers’ profits. It’s not putting the customer first.


This all has the potential to be bad on many fronts. The main problem is that it disproportionally affects — or outright targets — low-income individuals and minorities.

how? some dealers may discriminate. judging people is a thing when it comes to car sales, as demonstrated in a 2018 test conducted by the national fair housing alliance using two couples at dealers in virginia, one black and one white. their findings showed that 63 percent of the time, the black customers received higher interest rates on their loans, even though they were more qualified than their white counterparts. the potential effect is that buyers with higher interest rates would choose longer terms to lower their monthly payments.

This all also ties into another problem. Dealers will be inclined to offer customers longer terms to earn higher compensation for the dealership. Dangling the lower payments that come with 84 and 96-month loan terms could get customers into trouble as the loans go underwater — owing more than the car’s value — especially with brands and models that have steep depreciation curves.

Nissan is one of those brands. An Altima for instance, with an a*sumed selling price of $26,453 will depreciate 59 percent after just five years. That much depreciation in five years of a seven-year loan with a high interest rate? It doesn’t bode well for anyone. The sad part is, I’m sure Nissan dealers would be more than OK to welcome these customers back, rolling that negative equity into another loan to again line their pockets.
visit this link https://jalopnik.com/niss .. ers-1846636646
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 1 week ago '04        #2
JayR04  OP
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Fuk a Nissan
+48   

 1 week ago '19        #3
aaf192020 
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Toyota is better anyways. Trying to get my hands on a cheap Tacoma. Them bxtches last forever! Hard cause they're precious commodities in Hawaii.
+37   

 1 week ago '04        #4
JayR04  OP
Props total: 11456 11 K  Slaps total: 586 586
 aaf192020 said
Toyota is better anyways. Trying to get my hands on a cheap Tacoma. Them bxtches last forever! Hard cause they're precious commodities in Hawaii.
Yea them Yota trucks hold their value. Been looking at first gen 4-Runners for awhile and people still want several thousand with damn near 200k miles.
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 1 week ago '19        #5
aaf192020 
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 JayR04 said
Yea them Yota trucks hold their value. Been looking at first gen 4-Runners for awhile and people still want several thousand with damn near 200k miles.
That's my backup as well. Had one 4 sale down the street for 13k. It's a damn 2011 4runner. Shxt is insane.
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 1 week ago '18        #6
Fumo617 
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 JayR04 said
I worked in car sales and two years ago Nissan was about to tank... easiest cars to finance or lease is a infinity , Nissan, Kia, Hydaui, ford...

84 to 96 month term you'll end up paying 2x the value if they hit ya with that 19% apr.
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 1 week ago '19        #7
jlem 
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96 months!? WTF!



8 years on a car loan is absolutely insane. I don't care what you're buying. A home loan is typically 15-30 years. That's over 50% of a 15 year mortgage or 27% of a 30 year mortgage. Let that sink in.

99% of cars are depreciating a*sets. Even if you get a great deal. I have a car that retailed for $65k when it released 10 years ago. Today you can buy that same car for 15-20k.

That's almost a 70% drop in value.
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 1 week ago '15        #8
7daytheory 
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96 month loans?
+8   

 1 week ago '18        #9
Oldschoolchamp 
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0% financing is fine by me
+31   

 1 week ago '15        #10
Brewklyner  topics gone triple plat - Number 1 spot x7
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I mean 3-4 years is fine tbh u should get a new car every so often. Leasing is the way to go
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 1 week ago '04        #11
amws82 
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Took out a 72 month loan for an brand new 2007 f-150 Lariat. Paid it off and still driving it today with 200k. If you take care of a car you can keep it for 10+ years. If the motor is good and transmission is good every thing else is just aesthetics.
+17   

 1 week ago '16        #12
KingJerz  topics gone triple plat - Number 1 spot x17
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Does this matter if you plan to pay the car off in 2 to 4 years anyway?
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 1 week ago '17        #13
JacobWatch 
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I remember when I didn’t know sh*t and took out a 6 year loan on a car

Learned my lesson now it’s either 48 months or less
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 1 week ago '05        #14
projectd06 
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They already want you to finance the car, sales people get paid more if its financed (from what I've been told). You go to an ATT store and ask to buy a phone without financing it and they will tell you that you cant, in reality you can, but they dont get commission on it. Had to call a few cats out about that bullsh*t.
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 1 week ago '05        #15
projectd06 
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 KingJerz said
Does this matter if you plan to pay the car off in 2 to 4 years anyway?
As long as the interest is the same and there is no penalty to pay it off earlier, should be the same. I could be wrong.
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 1 week ago '04        #16
PTAH  topics gone triple plat - Number 1 spot x2
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GTR!
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 1 week ago '07        #17
Funeral James 
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Would never own another Nissan and would never finance another vehicle in life.
+9   

 1 week ago '16        #18
postemupndunkit 
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Nissans past 30 years blow my fu*king mind man

Their v6s are fu*king amazing but everything else is just a shame
+3   

 1 week ago '14        #19
osamatwinllamas 
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I just bout my car in January for 27k. Put down 12.5k and took 84 month at 6.89% payment plan so i can have low bi weekly payments of $104. Did the same with my last car n paid it off in 3. I take the longes possible payment option to lower my commitment bit only take loans with no penalties for early payments. I'll have it paid of in 2 years while only having to pay 200 a month in the mean tine i think its a win win
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 1 week ago '04        #20
killadre  topics gone triple plat - Number 1 spot x1
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If you got good credit it really don’t matter how long you finance for if no prepayment penalty.

Also most car companies are giving out 72 months 0% interest to people with good credit.

But if you got bad credit, with zero intentions on paying off early than yeah you’ll pay dearly.
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 1 week ago '19        #21
dollarvandriver 
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Predatory AF
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 1 week ago '19        #22
jlem 
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 KingJerz said
Does this matter if you plan to pay the car off in 2 to 4 years anyway?
If that's the plan, then no. However, a lot of people don't plan like that.
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 1 week ago '04        #23
memphis10 
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 osamatwinllamas said
I just bout my car in January for 27k. Put down 12.5k and took 84 month at 6.89% payment plan so i can have low bi weekly payments of $104. Did the same with my last car n paid it off in 3. I take the longes possible payment option to lower my commitment bit only take loans with no penalties for early payments. I'll have it paid of in 2 years while only having to pay 200 a month in the mean tine i think its a win win
but what was the total interest amout you ended up paying?
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 1 week ago '14        #24
prophetmoses 
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 osamatwinllamas said
I just bout my car in January for 27k. Put down 12.5k and took 84 month at 6.89% payment plan so i can have low bi weekly payments of $104. Did the same with my last car n paid it off in 3. I take the longes possible payment option to lower my commitment bit only take loans with no penalties for early payments. I'll have it paid of in 2 years while only having to pay 200 a month in the mean tine i think its a win win
math not adding up fam.
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 1 week ago '16        #25
thekg1 
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Nissan is pure garbage. Toyota is king IMO. Just picked up a 13 Camry with only 12K miles owned by a old lady for 6K absolute steal. Never finance buy cash and be patient and buy from the original owner.
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