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Old 07-12-2015, 01:19 AM
 
Location: Purgatory
6,317 posts, read 4,437,543 times
Reputation: 9731

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Its regarding 0% APR financing which I've never considered before because i assume there are hidden fees somewhere.

I'm kinda retarded so can someone just give this to me straight? I especially don't understand the bolded.

TY!



Nissan Offer Details

2015 Altima 0.0% APR financing for up to 72 months plus $1,000 NMAC cash for well qualified buyers or $1,000 cash back

Subject to residency restrictions. Customer may choose (a) special APR with NMAC cash, (b) standard APR through NMAC with customer cash and NMAC cash, or (c) customer cash. Financing is subject to NMAC Tier 1 through Tier 2 credit approval. $13.89 per month per $1,000 financed at 0.0% for 72 months, on all new above-noted vehicles in dealer stock. NMAC cash available when you finance through NMAC and is subject to credit approval. Down payment may be required. Cash back when you purchase from new dealer stock. See dealer for details. Offers end 07/31/2015.




.
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Old 07-12-2015, 01:29 AM
 
Location: SF Bay Area
13,349 posts, read 16,509,989 times
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You pay $13.89 per month for every $1000 you borrow -- $138.90 for $10k borrowed, $277.80 for $20k borrow, etc -- and it's only for the cars the dealer has in stock (not ones they have to order for you).
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Old 07-12-2015, 08:52 AM
 
4,762 posts, read 10,224,033 times
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So THAT is what they are saying on the radio, very quickly, after their ads!
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Old 07-12-2015, 09:04 AM
 
16,476 posts, read 17,501,756 times
Reputation: 23521
Quote:
Originally Posted by Utopian Slums View Post
Its regarding 0% APR financing which I've never considered before because i assume there are hidden fees somewhere.

I'm kinda retarded so can someone just give this to me straight? I especially don't understand the bolded.

TY!



Nissan Offer Details

2015 Altima 0.0% APR financing for up to 72 months plus $1,000 NMAC cash for well qualified buyers or $1,000 cash back

Subject to residency restrictions. Customer may choose (a) special APR with NMAC cash, (b) standard APR through NMAC with customer cash and NMAC cash, or (c) customer cash. Financing is subject to NMAC Tier 1 through Tier 2 credit approval. $13.89 per month per $1,000 financed at 0.0% for 72 months, on all new above-noted vehicles in dealer stock. NMAC cash available when you finance through NMAC and is subject to credit approval. Down payment may be required. Cash back when you purchase from new dealer stock. See dealer for details. Offers end 07/31/2015.




.
Fir every $1000 borrowed you are paying 13.98 per month. So if you borrow $10,000 the math is
10,000/1000=10
13.89x10=138.90
So your payment back for that 10,000 borrowed dollars is at the monthly payment of 138.90.
For a total you multiply the monthly payment of 138.90 x the amount of months which in this case is 72 months
138.90x72=10,000.80


(Replace the 10,000 with the actual amount you are borrowing to get your actual figures. So loan amount is 35,690/1000 gives you your payback ratio of payment for every 1,000 dollars borrowed.
Divide that loan amount by 1000. 35,690/1000=35.69.
Multiply that 35.69 rate with the known payment for every 1,000 bucks to get the monthly payment
13.89x35.69=495.73.
Multiply the monthly payment with the amount of months of the loan to get a life of loan total payment
495.73x72=35,692.56)


The approval is subject to NMAC Tier 1/2. So basically to get that 0% you must have great credit

The offer is only good on cars thst are in stock. Meaning on the dealer lot

There is a "cash back" when you purchase from the dealer. Probably meaning you can't use a car buying service and most likely to get " cash back" you most likely dont qualify for 0%. So they give a "rebate" of cash back which most use towards the down anyway. And a down may be required if your credit isn't that good to get 0%. And the rebate goes to the dealer

Last edited by Electrician4you; 07-12-2015 at 09:24 AM..
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Old 07-12-2015, 09:45 AM
 
Location: Poway, CA
2,698 posts, read 9,519,350 times
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To figure the monthly payment at 0% financing is really easy. Just divide total cost by number of months. So, in this case, each $1000 you spend is $13.89/mo because $1000/72 equals $13.89. They're just doing the math for you. Nothing sneaky about it that I see.

Mike
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Old 07-12-2015, 02:13 PM
 
Location: Cape Cod
9,775 posts, read 7,102,126 times
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0% financing is pretty nice..

If you do by a car from be sure to watch the bottom line on the P+S carefully and don't let them talk you into anything else in the finance dept. Bad shady dealers get people in the door by offering nice deals then the details come out or they try to slip something past you in the end.
I wonder if that $1000 cash back is already included in the $13.89 price per $1000 ?
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Old 07-12-2015, 05:45 PM
 
Location: SF Bay Area
13,349 posts, read 16,509,989 times
Reputation: 19638
Quote:
Originally Posted by Cape Cod Todd View Post
0% financing is pretty nice..

If you do by a car from be sure to watch the bottom line on the P+S carefully and don't let them talk you into anything else in the finance dept. Bad shady dealers get people in the door by offering nice deals then the details come out or they try to slip something past you in the end.
I wonder if that $1000 cash back is already included in the $13.89 price per $1000 ?

$13.89 per $1000 financed has nothing to do with the price of the car. It's just math ($1000/72 months).
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Old 07-13-2015, 02:52 AM
 
Location: Purgatory
6,317 posts, read 4,437,543 times
Reputation: 9731
Quote:
Originally Posted by Electrician4you View Post
Fir every $1000 borrowed you are paying 13.98 per month. So if you borrow $10,000 the math is
10,000/1000=10
13.89x10=138.90

So your payment back for that 10,000 borrowed dollars is at the monthly payment of 138.90.
For a total you multiply the monthly payment of 138.90 x the amount of months which in this case is 72 months
138.90x72=10,000.80


(Replace the 10,000 with the actual amount you are borrowing to get your actual figures. So loan amount is 35,690/1000 gives you your payback ratio of payment for every 1,000 dollars borrowed.
Divide that loan amount by 1000. 35,690/1000=35.69.
Multiply that 35.69 rate with the known payment for every 1,000 bucks to get the monthly payment
13.89x35.69=495.73.
Multiply the monthly payment with the amount of months of the loan to get a life of loan total payment
495.73x72=35,692.56)


The approval is subject to NMAC Tier 1/2. So basically to get that 0% you must have great credit

The offer is only good on cars thst are in stock. Meaning on the dealer lot

There is a "cash back" when you purchase from the dealer. Probably meaning you can't use a car buying service and most likely to get " cash back" you most likely dont qualify for 0%. So they give a "rebate" of cash back which most use towards the down anyway. And a down may be required if your credit isn't that good to get 0%. And the rebate goes to the dealer

Sooo . . . ."0% financing" has a fee of "~$140 per month" if i finance 10k.

140 X 12months = 1,680 per year
1680 X 5 years = $8,400

TOTAL FEES for "0% interest" on 10k financed = $8,400
or
TOTAL FEES for "0% interest" on 20k financed = $16,800


Whoops- Sorry, i just saw it's "72 months," not 5 years.

140 X 72 months = $10,080
or
280 x 72 months = $20,160


Is this correct? And if so- WTF??!!

This means even at 0% financing, you are still paying TWICE AS MUCH (>100% more) for the car due to the fees??!

Is this really correct??



Maybe i'm just in denial. I usually pay cash for cars but was considering going another way. "0%" sound so great in theory . . . . I guess not so much if this is the reality.

I just can't say it enough- WTF!!??

I guess that 100% decreases if i need the loan for less time since the language is "up to" 72 months. . . . .



More Questions:

1. If i pay cash, do i still get "cash back" (i.e., a lesser price)?

2. Do they still have to run my credit in this instance?

3. Are there any car companies who don't charge such fees, or is this pretty much industry standard?

Honestly, my credit score is merely what i think is "moderately high" due to not having any recent "revolving credit" (I think that is the term- i rent and have never had a car payment and paid student loans >10yrs ago. So my only real "credit" history is "credit cards.") So i specifically WANTED this type of credit/payment history to improve my score. But i don't think i can justify this.

4. So if i pay if off early, will it raise/decrease or have no impact on my credit score?

I think paying my student loans early actually hurt (or had no impact) on my credit score because my number has been pretty much the same right after those loans were paid off 10 years ago up to now.


Thank you again!
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Old 07-13-2015, 02:57 AM
 
Location: Chicago
38,691 posts, read 86,783,990 times
Reputation: 29355
Quote:
Originally Posted by Utopian Slums View Post


This means even at 0% financing, you are still paying TWICE AS MUCH (>100% more) for the car due to the fees??!

Is this really correct??
No. It's your monthly payment for 72 months per $1,000 borrowed. Period. That's it. Nothing complicated about this.
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Old 07-13-2015, 05:30 AM
 
Location: Purgatory
6,317 posts, read 4,437,543 times
Reputation: 9731
Quote:
Originally Posted by Drover View Post
No. It's your monthly payment for 72 months per $1,000 borrowed. Period. That's it. Nothing complicated about this.
Yes, it's the monthly payment PLUS the price of whatever you owe on the car.

I don't think it's as "complicated " as it is expensive.

Unless you are saying I would only have to pay back $14 a month for every 1k borrowed and that this is not a fee but the principal. Is this what you are trying to say?
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