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Nissan Enabling Bigger Dealer Markups On 7-Year Loans

1999 Views 4 Replies 4 Participants Last post by  MaxxyD
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Nissan is allowing dealers to impose larger markups on its longest loans. According to incentive bulletins sent to dealers, Nissan Motor Acceptance Company, or NMAC, is enabling dealers to mark-up 84-month loans by as much as 1.5%. The changes may enable dealers to profit more from payment-focused car buyers.

Starting today, NMAC is allowing dealers to mark-up its standard rates by up to 150 basis points. This may translate to a price increase for buyers compared to the previous limit of 100 basis points by raising the allowed markup from 1% to 1.5%. While car buyers know this as a markup, automakers call it Dealer Participation.

Non-promotional financing offers, or standard rates, have become more prevalent from Nissan amid a broader pullback of incentives due to an inventory shortage. Currently, the brand's best rates are limited to just 36 months, and just about every new Nissan only offers standard rates on loans over 48 months in length.

Based on the NMAC's standard rate bulletin that went into effect today, the company's 84-month rate is now 4.35% APR. With a 1.5% markup, that would come out to 5.85%. On a 7-year loan for a $30,000 car, a rate of 5.85% would cost over $6,600 in interest assuming you can avoid a price markup or unwanted add-ons.

To make matters worse, these examples are based on top-tier credit. With so-called Tier 2 credit, the rate would jump to 7.26% after the markup. With Tier 6 credit — the lowest allowed by NMAC with 84-month financing — the rate would be 11.45%. The same rates apply for both new and factory-certified used Nissans.
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we got 72 months at 1.9% from nissan back in August of 21 on a pathfinder even though we got screwed over a bit on the price. this makes me feel a bit better now.

rates in general are about to go up with the fed hike so will be interesting to see what everyone does on the Z
It looks like it will be less and less possible for young people like me to afford a car. I would take a loan if the APR were good, but I cannot be sure it will be worth it in the near future. I am leaning more and more towards saving up and buying a used car.
I also don’t want to deal with banks and loans in general because this freaks me out and makes me feel like I am a slave to the system. The general rule of my financial life is: can’t afford it – don’t buy it. And it works fine in most situations. I wanted to make an exception for a car and get a loan from one of organizations recommended on but I still have to think about it.
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@fraydamccaughey welcome to the forum!
I feel your pain. I have a couple of friends who picked up used 350Zs on the cheap. It's a great way into the world -- if you can be patient.
It's essential to know these markups and negotiate the best deal possible when purchasing a car. On a positive note, if you're in the market for a car, it's worth considering non-promotional financing offers and looking for the best rates. Getting pre-approved for a loan from a reputable lender before heading to the dealership is also a good idea.

This can help you avoid any unwanted markups or add-ons. Speaking of loans, if you're looking for a Mortgage Broker in Wakefield, I've heard good things about a few local brokers. They can help you find the best mortgage rates and terms for your needs. This is a friendly tip if anyone is in the market for a new home or looking to refinance.
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