The truth about financing

[nintu]

Again, I get it. Companies do it all the time: Advertise 0% and then a lower ''cash'' price.

In this case it is not so. People who truly need a cheap car will be drawn in by this clever (but slimy) campaign. Because the car, like you said, is not really 9998 it is much more due to the unadvertisedhigher interest rate at this particular price.

Again, I get it. Companies do it all the time: Advertise 0% and then a lower ''cash'' price.

In this case it is not so. People who truly need a cheap car will be drawn in by this clever (but slimy) campaign. Because the car, like you said, is not really 9998 it is much more due to the unadvertisedhigher interest rate at this particular price.

No. The car is 9998. Literally and figuritively. Actually, to be pedantic, it's 11,300 with freight, which is an unavoidable cost anyway. If anything, that is the deceiving thing about car ads. But even still, it literally is 11,300. You come in, 11,300 + tax buys the car. ezpz. The financing is not free. No company does free financing. Ever. They lend you money, they get money in return. Not hyundai, Nissan, kia, etc..

My goal was just to clear up that no financing is free nomatter what they claim. At 11500 @ 0%, the car is still the cheapest car in canada and with 0%. Its the fault of the consumer to hear 9998 and assume the company will lend you 10k at 0%. That's never happened and never will.

So yes, the price of the car is 9998 + freight and tax. You have the option to pull a hyundai and pay for the interest up front (we will honor this,) and pay all the interest up front and give you a 0% loan. It's called Subvention.

And finally, to reiterate, 9998 @ 5.9% is better than the Hyundai style offer of 11,500 @ 0%. You call it slimy.

I call it slimy to take the easy route and market the car at 11500 @0% financing to trick people into thinking they're not paying for financing the car. That's the slimy thing.

Instead Nissan did the transparent and honest thing and is showing people the price of the car and giving them plenty of options of payment to save the most amount of money. The problem is for sales people like me are then tasked at explaining why 5.9% can be better than 0% through the magic of subvention and smoke and mirrors.

Sometimes I wish I worked for a more dishonest company so I wouldn't have to explain this over and over again.

And again, I don't know how it's SLEAZY to be honest about the price of the car and NOT try and trick you with subventing rates! I'm absolutely mind-boggled by your insisting that this is Sleazy for drawing people in and then offering them money at a banks rate. It's literally being more honest and more advantageous. ... .. I don't understand!

If a customer is lured in to 9998 and think to them selves that they are entitled to 0% financing just for the heck of it, then they are stupid. I'm sorry. It's not the dealer being slimy, its the customer being confused and entitled because of manufacturers that first started subventing rates.

[aftica]

It's not sleazy when you publish the higher financing rate right beside the 9998 price.

Many companies offer so called 0% financing and then right in the same ad offer a lower cash price, that's called being up front. Nissan, with this campaign has found a clever way to not be up front.

I never said it was a bad deal, and I don't envy you your task of presenting it to people who were misled by omission.

[nintu]

It's not sleazy when you publish the higher financing rate right beside the 9998 price.

Many companies offer so called 0% financing and then right in the same ad offer a lower cash price, that's called being up front. Nissan, with this campaign has found a clever way to not be up front.

I never said it was a bad deal, and I don't envy you your task of presenting it to people who were misled by omission.

BUT ITS NOT 9998$ at 5.9! It's 9998 NOMATTER HOW YOU CHOOSE TO PAY. CAsh, pennies, line of credit, trades, mortgage, Lease. Nomatter how you decide to pay for this car, it's 9998. Period.

That's like saying a realtor is misleading for offering a house for 500,000 dollars. It should say in BIG LETTERS what the average mortgage rate is.

They're not the ones lending money. It's not your money, stop being so entitled. However you choose to pay, you can buy the car for the advertised price. As long as you haven't chosen somebody elses pocket, you're good to go.

Same reason mcdonalds isn't deceiving you for not including tax on their menu. That money goes elsewhere and is unreleated to the transaction. We're nitpicking back and forth man. We've already establish 5.9 is better than the alternative Nissan could have chosen, i'm just trying to explain how you don't own any portion of Nissan's financial institution, nor are you entitled to free money from any organization.

Are you looking at buying a TV on credit card? Does the sticker price say $599 @ 19.99% interest! NO! Because you can buy the thing however you please.

[aftica]

BUT ITS NOT 9998$ at 5.9! It's 9998 NOMATTER HOW YOU CHOOSE TO PAY. CAsh, pennies, line of credit, trades, mortgage, Lease. Nomatter how you decide to pay for this car, it's 9998. Period.

That's like saying a realtor is misleading for offering a house for 500,000 dollars. It should say in BIG LETTERS what the average mortgage rate is.

They're not the ones lending money. It's not your money, stop being so entitled. However you choose to pay, you can buy the car for the advertised price. As long as you haven't chosen somebody elses pocket, you're good to go.

Same reason mcdonalds isn't deceiving you for not including tax on their menu. That money goes elsewhere and is unreleated to the transaction. We're nitpicking back and forth man. We've already establish 5.9 is better than the alternative Nissan could have chosen, i'm just trying to explain how you don't own any portion of Nissan's financial institution, nor are you entitled to free money from any organization.

Are you looking at buying a TV on credit card? Does the sticker price say $599 @ 19.99% interest! NO! Because you can buy the thing however you please.

Does Mcdonalds charge a different rate of tax on a higher end burger? Say one with cheese as opposed to plain.
Does Future Shop charge higher % financing on a $1000 computer vs. a $1200 version of the same model?

Maybe they do, I don't know.

Just asking for a little up frontness is all.

[nintu]

Does Mcdonalds charge a different rate of tax on a higher end burger? Say one with cheese as opposed to plain.
Does Future Shop charge higher % financing on a $1000 computer vs. a $1200 version of the same model?

Maybe they do, I don't know.

Just asking for a little up frontness is all.

2 things.

No, they don't. Not Nissan, Mcdonalds or future shop are charging you any extra money to finance. None. Nobody. Maybe that's where we're caught up. You think Nissan is charging interest. They're not. Don't worry. You don't have to pay a penny of interest to buy the car at 9998.

Finally cleared up. Good.

[AlphaMicra]

2 things.

No, they don't. Not Nissan, Mcdonalds or future shop are charging you any extra money to finance. None. Nobody. Maybe that's where we're caught up. You think Nissan is charging interest. They're not. Don't worry. You don't have to pay a penny of interest to buy the car at 9998.

Finally cleared up. Good.

That is true, I advise banking at a credit union and then getting your car financing arranged through them. Unless someone like Nissan offers it for less. My credit union can't do 1.9%, but they certainly do better than anything over 5%.

[nintu]

That is true, I advise banking at a credit union and then getting your car financing arranged through them. Unless someone like Nissan offers it for less. My credit union can't do 1.9%, but they certainly do better than anything over 5%.

Ya. For specified Car loans, you're sure as hell not getting better than 4.9 through a bank. Money is expensive. lol. My finance manager goes through 21 different banks for used cars and still the most aggressive rates from banks is generally 4-5%. If you get a line of credit you can get prime + 1 or something but you're still looking at a variable instead of fixed rates at around the 4-5 mark.

[aftica]

2 things.

No, they don't. Not Nissan, Mcdonalds or future shop are charging you any extra money to finance. None. Nobody. Maybe that's where we're caught up. You think Nissan is charging interest. They're not. Don't worry. You don't have to pay a penny of interest to buy the car at 9998.

Finally cleared up. Good.

I'm sorry, but you have not cleared anything up.

You don't obviously don't seem to understand, and some of your numbers are wrong in the above posts also. You work at a dealer and are having a hard time seeing things from a customers perspective perhaps?

I have absolutely no problem with the interest rate, be it 1.9% (which my bill of sale clearly states) or 4.9% which I was told it would be... a few days after signing the deal... or even 5.9% which everybody except yourself and my sales guy says it is really going to be.

The problem I have is with the way they are marketing this car. I know it is not illegal, but it is sleazy. The really sad thing is that most people who really could benefit or need a cheap car will not be able to take advantage of the $9998 because they are the very people that do not have $13,020 (give or take a buck or two) in cash up front to purchase the base model.

Everyone is asking: how can Nissan sell this car for $9998?
the answer is: they won't have to sell very many! It is a loss leader for the very few that might actually be bought cash up front. The rest they sell, will be financed at a higher rate which will make up for the lower price.
All this is perfectly fine EXCEPT, that they don't really seem to be telling anybody until they walk into a dealer, (in my case until after signing a bill of sale LOL!)and that is the sleazy part. That is the ''catch'' that is so cleverly hidden.

It is a very, very clever campaign, but one which walks a fine line too and could cause some backlash. It not quite ''we'll sell you a car for 10K, but the wheels are extra'' but it runs right up to that line and looks at it hard.

Want to fix all this? Simply explain clearly to everyone who asks about the price in public, and in your ads, that the price is contingent upon cash up front, or a higher rate of interest than the upgrade models.

Still waiting for cars companies/dealers stop playing games

[nintu]

I'm sorry, but you have not cleared anything up.

You don't obviously don't seem to understand, and some of your numbers are wrong in the above posts also. You work at a dealer and are having a hard time seeing things from a customers perspective perhaps?

I have absolutely no problem with the interest rate, be it 1.9% (which my bill of sale clearly states) or 4.9% which I was told it would be... a few days after signing the deal... or even 5.9% which everybody except yourself and my sales guy says it is really going to be.

The problem I have is with the way they are marketing this car. I know it is not illegal, but it is sleazy. The really sad thing is that most people who really could benefit or need a cheap car will not be able to take advantage of the $9998 because they are the very people that do not have $13,020 (give or take a buck or two) in cash up front to purchase the base model.

Everyone is asking: how can Nissan sell this car for $9998?
the answer is: they won't have to sell very many! It is a loss leader for the very few that might actually be bought cash up front. The rest they sell, will be financed at a higher rate which will make up for the lower price.
All this is perfectly fine EXCEPT, that they don't really seem to be telling anybody until they walk into a dealer, (in my case until after signing a bill of sale LOL!)and that is the sleazy part. That is the ''catch'' that is so cleverly hidden.

It is a very, very clever campaign, but one which walks a fine line too and could cause some backlash. It not quite ''we'll sell you a car for 10K, but the wheels are extra'' but it runs right up to that line and looks at it hard.

Want to fix all this? Simply explain clearly to everyone who asks about the price in public, and in your ads, that the price is contingent upon cash up front, or a higher rate of interest than the upgrade models.

Still waiting for cars companies/dealers stop playing games

A few things. And I'm sorry if I'm disrespectful but you're just ridiculously ignorant and insistent upon certain things that don't make sense.

Nissan is not charging interest. They are offering (OFFERING) financing. The 9998 price does not need to offer any kind of stipulation, and it is not the onus of the manufacturer to clarify in bold letters "We do not subvent the rate for you in the interest of full transparency."

Listen. It's already established that the rate is better than a subvented 0%. If you disagree with me, talk to an accountant, finance advisor, branch manager, high-school educated adult.. etc.. And they will happily sit down with you and try again to explain it to you.

I'm just defending that this isn't slimy. And no, i'm not biased. Because A) I'm a customer (Buying a Micra,) I'm financing it, and it's the base model. (The one in question).
B) Nissan DOES do the same thing to stay competitive, just NOT IN THIS CASE. They offer 0% financing on a lot of vehicles over 84 months. For instance, on the Versa Note. Hey! Great Deal! Well, we can also give you thousands of dollars off if you don't take the 0%, which as stated, is generally the better option. (finance through at bank rate for a few more options)

C) I have the official list from NCF showing all the rates they offer on the Micra. Also, go to Nissan.ca and use the finance calculator.

I have the rates for western canada, it's possible it's different in eastern canada. IF so, your argument is even more invalid since 4.9 is better than 90% of car loans. (Trust me. Average car loan is over 5)

And finally. I don't know where you say my Numbers are wrong. Which numbers are wrong and why?

When I saw the internal release of the price structure, production mix and rates offered, I was not shocked or dissapointed to see 5.9. I saw that the difference between Auto/air and Base, was 4,000, instead of 2,500 (A more standard amount for the options.) Where does the extra 1,500 go? Into buying the rate down on higher models.

Listen, you're entitled to your opinion that it's slimy. I just really don't care. You're the type of person who walks into a dealership and afraid that the salesman will "put you together" and has $3,000 of mark-up on each car. I can't imagine ever losing a deal due to a non-subvented rate discount. Most people either figured it out, or once it's explained, can put 2 and 2 together.

Can you tell your friends you got 0% on your brand new car? No. Just say you got thousands off the price and will save more money than them in the long-run paying a rated loan.

Are there slimy things done? I don't know if slimy is the right word. There are misleading things done, which is basically marketing 101. Showing 50$ bi-weekly payments that don't include tax, freight, a 1500$ down payment and is a base model with no air while they show a picture of a full load. That is done everyday and those customers I have to explain this too with (Did you read the fine print?) That is marketing and misleading..

The Micra is just one of the few cars that they actually havent been misleading on whatsoever.

[aftica]

A few things. And I'm sorry if I'm disrespectful but you're just ridiculously ignorant and insistent upon certain things that don't make sense.

Nissan is not charging interest. They are offering (OFFERING) financing. The 9998 price does not need to offer any kind of stipulation, and it is not the onus of the manufacturer to clarify in bold letters "We do not subvent the rate for you in the interest of full transparency."

Listen. It's already established that the rate is better than a subvented 0%. If you disagree with me, talk to an accountant, finance advisor, branch manager, high-school educated adult.. etc.. And they will happily sit down with you and try again to explain it to you.

I'm just defending that this isn't slimy. And no, i'm not biased. Because A) I'm a customer (Buying a Micra,) I'm financing it, and it's the base model. (The one in question).
B) Nissan DOES do the same thing to stay competitive, just NOT IN THIS CASE. They offer 0% financing on a lot of vehicles over 84 months. For instance, on the Versa Note. Hey! Great Deal! Well, we can also give you thousands of dollars off if you don't take the 0%, which as stated, is generally the better option. (finance through at bank rate for a few more options)

C) I have the official list from NCF showing all the rates they offer on the Micra. Also, go to Nissan.ca and use the finance calculator.

I have the rates for western canada, it's possible it's different in eastern canada. IF so, your argument is even more invalid since 4.9 is better than 90% of car loans. (Trust me. Average car loan is over 5)

And finally. I don't know where you say my Numbers are wrong. Which numbers are wrong and why?

When I saw the internal release of the price structure, production mix and rates offered, I was not shocked or dissapointed to see 5.9. I saw that the difference between Auto/air and Base, was 4,000, instead of 2,500 (A more standard amount for the options.) Where does the extra 1,500 go? Into buying the rate down on higher models.

Listen, you're entitled to your opinion that it's slimy. I just really don't care. You're the type of person who walks into a dealership and afraid that the salesman will "put you together" and has $3,000 of mark-up on each car. I can't imagine ever losing a deal due to a non-subvented rate discount. Most people either figured it out, or once it's explained, can put 2 and 2 together.

Can you tell your friends you got 0% on your brand new car? No. Just say you got thousands off the price and will save more money than them in the long-run paying a rated loan.

Are there slimy things done? I don't know if slimy is the right word. There are misleading things done, which is basically marketing 101. Showing 50$ bi-weekly payments that don't include tax, freight, a 1500$ down payment and is a base model with no air while they show a picture of a full load. That is done everyday and those customers I have to explain this too with (Did you read the fine print?) That is marketing and misleading..

The Micra is just one of the few cars that they actually havent been misleading on whatsoever.

Hello, some numbers you have wrong.
0% Not sure where you are getting this number, I never mentioned it.
4.9% Everyone is saying the actual rate is 5.9%
$4700 interest. I never said that, but you mistakenly think I did.
you claim about $1500 interest. No, it's about $1638.
etc...

You can hardly call me ridiculously ignorant when I am the one that sees past Nissan's marketing campaign, that you are so desperately jumping through hoops to justify.