Dissapointing Micra news

[zippy]

Hey everyone, so you read my recent posts about how excited I was to be looking into the Micra, however we are no longer taking it.

The reason: we were looking a the base model , manual, no AC and the price would be low to start with, but the financing options are just terrible.

5.9 percent is the fincance interest and the sales person said himself its definitely not making it appealing to the customer. As the trim models go up then the interest decreases a bit but the reaosn we wanted the micra was because it was cheap. However it seems nissan is just trying to scam us with the idea of a cheap car while adding a ton of interest. The monthly cost would be 262. We also looked into the Versa note but with the 0 percent finance option ending last month it would be a waste to finance a versa note at 1.9 percent interest.

So instead of the Micra we looked at Hyundai's 0 % interest finance deal and we decided to go with the 2014 Hyundai elantra basic model , manual and no ac, except it comes with front power windows, heated side mirrors, usb mp3 jack, and excellent fuel economy for the 148 horsepower it comes with. we also got it in white.

The total cost would be 14150 MRSP (we fought them to lower the price) and after taxes and freight and financing at zero it would total 17981 financed over 96 months , monthly payment comes to 166!! which is just above the 163 monthly fee of the hyundai accent (lower model) which is not as good.

it was good to meet micra fans and learn about the micra anyways, I will still check in to see the customs paints and the pictures of your cars,

[MetroMPG]

Hi zippy - well, sorry to hear that, but you gotta do what you gotta do. Thanks for letting us know.

we were looking a the base model, manual, no AC and the price would be low to start with, but the financing options are just terrible.

Yeah, we got a sense of the different rates for the S with the financing info that Alpha posted when he was doing his deal.

The base car makes the most sense as a cash purchase, or if you can arrange your own financing. Can't really blame Nissan - $9998 is marketing gold, but they probably only make about fifty bucks on each base car! To make any money, they're going to structure the options packages & financing to nudge buyers into the upper (more profitable) trims.

Too bad for Nissan they nudged you right into a new Hyundai! Well, I'm sure you'll enjoy it.

(Hopefully this doesn't turn into a common story.)

[AlphaMicra]

A new car with no A/C or cruise for $17981? I think that explains why they're offering 0% financing...

Personally, I'd have arranged my own financing at the local credit union. For example, a base model Micra financed at 4.25% over 96 months would end up costing only $12,124.62 when all is said and done. You don't need to finance through the dealer.

http://www.thecalculatorsite.com/fin...calculator.php

My Micra, at $15,922.45, with air, backup camera, and other options, plus freight and taxes, financed with Nissan at 1.9% over 48 months will cost me $16,547.76 when all is said and done. I suppose Nissan could've sold me a stick shift Micra without air for that price and 0% financing, then stretched my payments over 96 months (holy crap that's long), but $17981? I hope they supplied the Vaseline, my friend.

[zippy]

Yeah we will be happy with our new hyundai, but I certainly was sad that we had to turn it down, it seemed like a fun car, hence my zippy name for a zippy car. The purchase would make sense for the higher trim models though, although there are comparable sedan cars which may be roomier. I t will be interesting to see what happens with the sales of the car though, haha =)

[zippy]

It is more expensive and thus they can do the 0 percent financing deal although the car itself is worth the money, it is a very good value for the quality of the car and its ratings, and the manual will be fun to drive, my dad will teach me.

[nintu]

Hey everyone, so you read my recent posts about how excited I was to be looking into the Micra, however we are no longer taking it.

The reason: we were looking a the base model , manual, no AC and the price would be low to start with, but the financing options are just terrible.

5.9 percent is the fincance interest and the sales person said himself its definitely not making it appealing to the customer. As the trim models go up then the interest decreases a bit but the reaosn we wanted the micra was because it was cheap. However it seems nissan is just trying to scam us with the idea of a cheap car while adding a ton of interest. The monthly cost would be 262. We also looked into the Versa note but with the 0 percent finance option ending last month it would be a waste to finance a versa note at 1.9 percent interest.

So instead of the Micra we looked at Hyundai's 0 % interest finance deal and we decided to go with the 2014 Hyundai elantra basic model , manual and no ac, except it comes with front power windows, heated side mirrors, usb mp3 jack, and excellent fuel economy for the 148 horsepower it comes with. we also got it in white.

The total cost would be 14150 MRSP (we fought them to lower the price) and after taxes and freight and financing at zero it would total 17981 financed over 96 months , monthly payment comes to 166!! which is just above the 163 monthly fee of the hyundai accent (lower model) which is not as good.

it was good to meet micra fans and learn about the micra anyways, I will still check in to see the customs paints and the pictures of your cars,

The Hyundai isn't 0% financing either. The auto industry is full of smoke and mirrors that people still aren't used to. The Hyundai has a "cash discount", which, in other words, is the actual price of the car.

Cars dont depreciate once you drive them off the lot, they depreciate on the lot in the form of rebates and interest rates. In this case, the cash discount off the elantra is really the amount of interest you'd have paid if you paid the actual price of the car.

The high interest rate on the Micra shows a few things. The cost of borrowing is about 2500, making the car still MUCH less expensive than the hyundai. And because there aren't any rebates and high interest rate on the Micra, it hasn't and wont depreciate for time to come.

You think in a year, your 11,300 (with freight) car will all of a sudden be 5? Hell no. The micra can't get any lower, which is why its destined to have one of the best percentage resale values of any car.

Unfortunately the 17981 Hyundai, unfortunately a company that fleets their units to rental companies and other fleets, saturating the market, will depreciate the cash rebate from the msrp number, not the all-in number. Which is roughly 14150 - 2500. Roughly 11650, still more expensive than the base model micra.

I also never recommend a 96mo term. Owing 17,981 on a car that's ACV or Actual car value at 12000, and paying it back 160 dollars at a time means you'll be negative equity for atleast 5-6 years of the entire term.

Long story short, you paid 4.9+ interest, you just paid it upfront.

Sorry to get all passionate about this, but I hate it when people make their decisions based on interest rate. The base model micra is the same payment over 84 months, not 96, even at 5.9. Not only that, but it's a new model and will have very low depreciation.

If you prefer the hyundai, great. that's a great reason to make a purchase decision.

For instance, the new 2014 rogue has the highest interest rate in its class, but also has the LOWEST payment. So it's the CHEAPEST car, even with interest factored in. Marketing executives figured out years ago that you can trick people into paying interest if you ask for it right away, instead of over the term.

So no, Nissan isn't trying to trick anyone or take advantage of anyone. If you want you can come in and buy the base model for 13,000 and we'll charge 0% interest

Sorry, In re-reading it, that came off sounding really hostile. I didn't mean it to be. I just wanted to help inform other potential micra buyers that It's still the best deal around, even if you paid 6.9%

Plus there's the option of lending at less interest through a bank or through a line of credit.

Or if you have a trade and you only finance 5 grand, the 4.9 of 5 grand would be pennies, further increasing the value of Nissan's deal.

[Lauren]

Oh god.. why the 96 months?! WHY?!

Hyundai is notorious for that, it's their signature deal.

Believe me, I did the same thing with my Genesis and as much as I love my car and stare at it's ridiculously good looking behind every day ..... I regret getting into the 96 month term...

I am STILL paying for it.. I'm almost 28, have a savings account under $10,000, no possibility of buying a house in the next 5 years blah blah blah...

$166 a month on a car payment is wicked, but I mean (and I'm not trying to pry or ask for your personal income or anything along those lines), couldn't you have opted for a slightly larger monthly payment as opposed to EIGHT years of payments?! Even at "0% financing".

Again, I'm a noobie on this forum so I apologize if my response is a bit more "in your face", I just HATE seeing other people fall for what I did with my car.

In my opinion, slightly more per month is well worth it as opposed to such a long period of time for a car payment...

[nintu]

Oh god.. why the 96 months?! WHY?!

Hyundai is notorious for that, it's their signature deal.

Believe me, I did the same thing with my Genesis and as much as I love my car and stare at it's ridiculously good looking behind every day ..... I regret getting into the 96 month term...

I am STILL paying for it.. I'm almost 28, have a savings account under $10,000, no possibility of buying a house in the next 5 years blah blah blah...

$166 a month on a car payment is wicked, but I mean (and I'm not trying to pry or ask for your personal income or anything along those lines), couldn't you have opted for a slightly larger monthly payment as opposed to EIGHT years of payments?! Even at "0% financing".

Again, I'm a noobie on this forum so I apologize if my response is a bit more "in your face", I just HATE seeing other people fall for what I did with my car.

In my opinion, slightly more per month is well worth it as opposed to such a long period of time for a car payment...

We've all been tempted by it Lauren. I know I have. Super light payments with the promise of "you can pay it off whenever you want!" I've had so many people come in and owe $13,000 on a car that is worth $5,000... :/

Gotta be careful how long you term, and what you've decided on. Residual value is more important than fuel economy. You're losing more in asset depreciation than fuel, insurance etc...

We work for dealers so it's easier for us, but that lure is strong for so many.

Again, I'm sure it's not a bad car, and it will treat you well. I hate being a wet blanket, and I know you're gonna love it. People love whatever car they decide on.

But I still believe strongly in Nissan, and the importance of finance management on new cars.

[AlphaMicra]

Unfortunately the 17981 Hyundai, unfortunately a company that fleets their units to rental companies and other fleets, saturating the market, will depreciate the cash rebate from the msrp number, not the all-in number. Which is roughly 14150 - 2500. Roughly 11650, still more expensive than the base model micra.

There is another issue that needs to be further illuminated in conjunction with this:

I also never recommend a 96mo term. Owing 17,981 on a car that's ACV or Actual car value at 12000, and paying it back 160 dollars at a time means you'll be negative equity for atleast 5-6 years of the entire term.

That. If we put the two together, the result is that he will be upside down in this car for the next 8 years. EIGHT years of driving a car with no air conditioning. If he decides to sell the car after five years to get, say, something with air conditioning, he will need to pay money on top of whatever he gets for the car in order to settle his debt with Hyundai. Not so with a car like the Micra.

Long story short, you paid 4.9+ interest, you just paid it upfront.

Sorry to get all passionate about this, but I hate it when people make their decisions based on interest rate. The base model micra is the same payment over 84 months, not 96, even at 5.9. Not only that, but it's a new model and will have very low depreciation.

It needed to be said.

[zippy]

Hey guys, wow hahaha you guys are kinda crazy over this eh. Its good to talk about, I definitely understand that the interest is still being paid, but you guys have no idea about the economic situation we have, and who the car will be for and the fact that we don't give a damn about car depreciation value.

You talk about equity in the first response but we have never had that perspective on a car. A car is not equity for us, a house is, but a car is just a machine that depreciates no matter what it is, unless its a rare/expensive car.

The base model micra is the same payment over 84 months, not 96, even at 5.9. Not only that, but it's a new model and will have very low depreciation.

The elantra is 2014 and it is brand new as well, and I mentioned we don't plan on selling it anytime soon, nor in the future. It is a comfortable price, and we will be reducing that timespan anyways because we will be providing downpayments and irregular lump payments. When you talk about a car (loaded) micra at 15 something like Alpha is paying, and a small marginal price difference of 17,9 , who the heck cares about depreciation value its not like you are investing in the car.

I for one would rather pay for an elantra which is much more of a quality car than the micra, even if the micra has all the stupid things like back up camera/cruise/sattelite/whatever, the price difference is not that much (2 grand something) and the quality of the elantra is just much better than the micra. Alpha is paying extra to have bells and whistles on a car that is tiny and probably not as safe and probably not as good to drive. Try test driving the elantra and compare. The elantra is much above the micra competitors.

Need I remind you we love the elantra look and driving experience. I mean on the outside there is just no comparison, the elantra is beautiful and sexy . Also we can add AC whenever we want its not set in stone. lol relax. Why would we sell the car, yes its not automatic but honestly its actually a better driving experience and better for the car to be driven in manual transmission. If you get really good at stick you don't even need to press the clutch.

I sat in the micra SR and it just does not compare to even the base model elantra. I dont care about cruise because I never use it. Also the base model micra has manual windows and locks, the base elantra has power windows and power lock. we have 5 year bumper to bumper as well. They antenna is glass which makes the car look much slimmer. Its horsepower is higher than the micra.

I could go on and on for the reasons why the elantra is better than the micra but I dont want to bore you. Yes financially we pay more for a base model, but this base model has more than the mica base and with a similar price the elantra is just much more car than the micra. with tinted windows its gona be nice!