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Thread: Still being held back from buying...(note is the problem)

  1. #11
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    Quote Originally Posted by AlphaMicra View Post
    En3rg1e, I agree; the Micra is a high quality product, and these kinds of advertising and financing tactics probably do more to hurt the image of the car than anything else. Just be up front; I'm more than happy to pay what the car is actually worth. Toyota advertises the base Yaris hatch for $14,225; the Micra at that price is a much better car.
    Yes. But again, all manu's do this. Aftertising without Freight-pdi is as old as the 90s, when the freedom of competition act came in.

    The Yaris is Advertised at 14225 in the same way the micra is at 9998. 14225 + freight is 15,670. Comparable to the Micras 11,300.

    And again, Nissan isn't charging interest. They're offering financing at a rate that is better than every bank in the world. (For the SV/SR). They don't offer as aggressively for the base model since they didn't subvent the rate for it. (What does that mean?)
    Instead of paying money to bring the interest rate down on the car (As all manu's do), they instead apply it as discount on the principle.

    Having the lowest price and paying interest in more beneficial. Much like it's better to buy the Elantra at the cash price and take a bank rate around 4-5%. If you pay a lump sum, write it off and get a cheque from insurance, make early payments, have a down payment, have a trade, etc.. Then you save the interest on the portion you pay. You do not get this benefit taking 0% Financing. You're paying all the financing up front. Think of 0% as a forced down payment. They take all the interest you'd pay at 4.9%, and just add it to the price of the car, but then call it 0% financing. It's called Subventing.

    "A loan offered by a captive finance company of the auto manufacturer with artificially low interest rates. The low rates are used as incentives to entice buyers into dealer showrooms. The manufacturer supports the lower rates with a subsidy paid to the captive finance company enabling rates that are below the normal lending market values."



  2. #12
    Senior Member aftica's Avatar
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    Quote Originally Posted by nintu View Post
    Yes. But again, all manu's do this. Aftertising without Freight-pdi is as old as the 90s, when the freedom of competition act came in.

    The Yaris is Advertised at 14225 in the same way the micra is at 9998. 14225 + freight is 15,670. Comparable to the Micras 11,300.

    And again, Nissan isn't charging interest. They're offering financing at a rate that is better than every bank in the world. (For the SV/SR).They don't offer as aggressively for the base model since they didn't subvent the rate for it. (What does that mean?)
    Instead of paying money to bring the interest rate down on the car (As all manu's do), they instead apply it as discount on the principle.


    Having the lowest price and paying interest in more beneficial. Much like it's better to buy the Elantra at the cash price and take a bank rate around 4-5%. If you pay a lump sum, write it off and get a cheque from insurance, make early payments, have a down payment, have a trade, etc.. Then you save the interest on the portion you pay. You do not get this benefit taking 0% Financing. You're paying all the financing up front. Think of 0% as a forced down payment. They take all the interest you'd pay at 4.9%, and just add it to the price of the car, but then call it 0% financing. It's called Subventing.

    "A loan offered by a captive finance company of the auto manufacturer with artificially low interest rates. The low rates are used as incentives to entice buyers into dealer showrooms. The manufacturer supports the lower rates with a subsidy paid to the captive finance company enabling rates that are below the normal lending market values."
    Thanks for all that nintu! You have bright future in politics if you ever need a new job.

    Let me translate for us common folk...

    They don't offer the aggressive (1.9%) on the base model because they can't afford to, because too many people might actually want to buy them! It's a called loss leader, an advertising ploy to get people into the dealership, sure it's a great deal for the tiny percentage of guys that will pay cash up front, but they know that most people will have to finance.
    They can offer lower % financing on upgrade models because because they making enough profit on the upgrades you are paying for.

    It's as simple as that. Subventing. LOL. Whatever.
    Ten Grand Tin Can

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.3 L/100 km ... 53.2 mpg (Imp) ... 18.8 km/L ... 44.3 mpg (US) ...


  3. #13
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    Quote Originally Posted by aftica View Post
    Thanks for all that nintu! You have bright future in politics if you ever need a new job.

    Let me translate for us common folk...

    They don't offer the aggressive (1.9%) on the base model because they can't afford to, because too many people might actually want to buy them! It's a called loss leader, an advertising ploy to get people into the dealership, sure it's a great deal for the tiny percentage of guys that will pay cash up front, but they know that most people will have to finance.
    They can offer lower % financing on upgrade models because because they making enough profit on the upgrades you are paying for.

    It's as simple as that. Subventing. LOL. Whatever.
    It's weird. We're saying the same thing but you are saying in a weirdly glass-half-empty kind of way.
    "The know that half the people will have to finance" Yeah? So? They're offering rates not charging rates. If they were charging rates "You get this price but only if you take our financing", then you would make sense. Considering that they offer and sell their product at the advertised rate, I don't think your point is valid.

    Yes, they don't offer 1.9% on the base model because they cant afford to. I agree. It's called subventing. I wrote an article on it. We agree on this. They can't afford it because they DIDN'T subvent the base model, but they subvented the upper models. I totally, 100% agree to this. Subventing is ARTIFICIALLY lowering the rate, hence, making you pay up front for a lower rate.

    "They can offer lower % financing on upgrade models because because they making enough profit on the upgrades you are paying for." EXACTLY. Again, you're saying exactly what I am. The 9998 is so stripped of any profit, they can't even lower the rate. This is the BEST for the consumer. And if you have to finance, don't blame Nissan. Especially don't blame them if they are the only company willing to finance you. And ESPECIALLY DONT BLAME THEM, WHEN THIS IS THE WAY YOU GET THE MOST CAR FOR THE LEAST AMOUNT OF OUT-OF-POCKET EXPENSE.

    #Aneurysm

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    Senior Member AlphaMicra's Avatar
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    Quote Originally Posted by aftica View Post
    Thanks for all that nintu! You have bright future in politics if you ever need a new job.

    Let me translate for us common folk...

    They don't offer the aggressive (1.9%) on the base model because they can't afford to, because too many people might actually want to buy them! It's a called loss leader, an advertising ploy to get people into the dealership, sure it's a great deal for the tiny percentage of guys that will pay cash up front, but they know that most people will have to finance.
    They're not losing money on these when they sell them outright, but when it comes to financing, who in their right mind would give away money on something with such slim profit margins? Anyone can do better on an investment these days than 1.9% if they have half a brain.

    It's not a loss leader; I can believe they make a few bucks on each one they sell. I suppose we should all feel bad that companies might want to make money. Even though the SV manual jumps significantly in price, I still think it's a great deal, and 1.9% is icing on the cake. Almost like me and Nissan are meeting somewhere in the middle. The way business is supposed to be.

    In our culture obsessed with absurd excess, the Nissan Micra is my counterculture car of choice.
    Be sure to visit my blog at mymicra.com!

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra SV manual: 6.4 L/100 km ... 44.3 mpg (Imp) ... 15.7 km/L ... 36.9 mpg (US) ...


  5. #15
    Senior Member aftica's Avatar
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    Quote Originally Posted by nintu View Post
    It's weird. We're saying the same thing but you are saying in a weirdly glass-half-empty kind of way.
    "The know that half the people will have to finance" Yeah? So? They're offering rates not charging rates. If they were charging rates "You get this price but only if you take our financing", then you would make sense. Considering that they offer and sell their product at the advertised rate, I don't think your point is valid.

    Yes, they don't offer 1.9% on the base model because they cant afford to. I agree. It's called subventing. I wrote an article on it. We agree on this. They can't afford it because they DIDN'T subvent the base model, but they subvented the upper models. I totally, 100% agree to this. Subventing is ARTIFICIALLY lowering the rate, hence, making you pay up front for a lower rate.

    "They can offer lower % financing on upgrade models because because they making enough profit on the upgrades you are paying for." EXACTLY. Again, you're saying exactly what I am. The 9998 is so stripped of any profit, they can't even lower the rate. This is the BEST for the consumer. And if you have to finance, don't blame Nissan. Especially don't blame them if they are the only company willing to finance you. And ESPECIALLY DONT BLAME THEM, WHEN THIS IS THE WAY YOU GET THE MOST CAR FOR THE LEAST AMOUNT OF OUT-OF-POCKET EXPENSE.

    #Aneurysm

    Certainly I am seeing it as ''glass half full'', I am a customer and not a fanboy of any particular brand...whereas you on the other hand work at a Nissan dealer.
    I am only saying that this sales tactic they are using is kinda slimy... i'm pointing out the ''catch''
    If it was the old ''0% with a lower cash price'' schtick I wouldn't bother, everybody knows that con.

    They really want to trumpet that they can sell a car for much less than the competition, and they have found a sneaky but legal way to advertise just that.
    The problem (or catch) is that they can't really do it, but they might be able to pull it off as they know only a few people will be able to call their bluff and pay cash (this is the loss leader bit) , the rest would have to finance that ''low'' price at a high % rate.

    I knew there would be a catch when I walked into the dealer, but I figured it would be ''extreme limited availability'' or ''only available in puke green'' hehehe. The availability might still be an issue, we'll see... will keep you posted on that.
    Ten Grand Tin Can

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.3 L/100 km ... 53.2 mpg (Imp) ... 18.8 km/L ... 44.3 mpg (US) ...


  6. #16
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    Just out of curiosity, does anybody find nissan micra going to be a competitor to 2015 redesigned honda fit that will be coming out next couple months?

  7. #17
    Senior Member aftica's Avatar
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    Quote Originally Posted by pinksoda View Post
    Just out of curiosity, does anybody find nissan micra going to be a competitor to 2015 redesigned honda fit that will be coming out next couple months?
    They're both ''small end'' cars for each company, so I guess they are competitors in a way.

    My gut feeling is that the Honda is a slightly larger more refined car at a higher price point so I personally don't see them as competition.

    Even more important (to me at least) the Fit is repulsive to look at anyway, so that's that.

    EDIT: advice to Honda...find a way to bring on the N-One and you'll have me as a customer, even at a premium price.
    Ten Grand Tin Can

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.3 L/100 km ... 53.2 mpg (Imp) ... 18.8 km/L ... 44.3 mpg (US) ...


  8. #18
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    Quote Originally Posted by aftica View Post
    Certainly I am seeing it as ''glass half full'', I am a customer and not a fanboy of any particular brand...whereas you on the other hand work at a Nissan dealer.
    I am only saying that this sales tactic they are using is kinda slimy... i'm pointing out the ''catch''
    If it was the old ''0% with a lower cash price'' schtick I wouldn't bother, everybody knows that con.

    They really want to trumpet that they can sell a car for much less than the competition, and they have found a sneaky but legal way to advertise just that.
    The problem (or catch) is that they can't really do it, but they might be able to pull it off as they know only a few people will be able to call their bluff and pay cash (this is the loss leader bit) , the rest would have to finance that ''low'' price at a high % rate.

    I knew there would be a catch when I walked into the dealer, but I figured it would be ''extreme limited availability'' or ''only available in puke green'' hehehe. The availability might still be an issue, we'll see... will keep you posted on that.
    Yes. They'll "have to finance" (they don't have money) at any rate they are approved for. Nissan is offering an alternative rate. Once again, this saves money to the customer than the alternative of offering lower rates at a higher price. This is still the most beneficial and transparent way to sell a car. Show the actual price of the car with absolutely no mark-up, and allow the consumer to finance or pay for it however they see fit, while offering a rate for easy credit approval.

    And by the way, nobody is taking the 5.9. If their credit is fine we get them approved at a better rate through a bank, or they use their line of credit, contrary to your _opinion_ that most people will have to use that rate. 5.9 is a fall-back incase nobody is willing to buy them.

  9. #19
    Senior Member AlphaMicra's Avatar
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    Quote Originally Posted by aftica View Post
    The problem (or catch) is that they can't really do it, but they might be able to pull it off as they know only a few people will be able to call their bluff and pay cash (this is the loss leader bit) , the rest would have to finance that ''low'' price at a high % rate.
    Anyone who owns a home would most likely have a line of credit available that would easily exceed the after-PDI-and-tax-price of the base model Micra. I don't believe the base model Micra is as out of reach of people as you might think, it's just out of reach of the people who would benefit the most from it.

    In our culture obsessed with absurd excess, the Nissan Micra is my counterculture car of choice.
    Be sure to visit my blog at mymicra.com!

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra SV manual: 6.4 L/100 km ... 44.3 mpg (Imp) ... 15.7 km/L ... 36.9 mpg (US) ...


  10. #20
    Senior Member en3rg1e's Avatar
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    Lol! I just bought a house, so now im having trouble saving money for my micra...Name:  IMG_20140517_161035.jpg
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Size:  92.6 KB just spent 2k on my livingroom



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