payments opinion
 

hi guys. i need your advice about 2012 z financing. i have 3.99% APR for 72months. paying $485/month @ nissan. any suggestions for refinancing the car?

Credit union?

thanks for moving ..

@winnre do they offer good refinancing options?

3.99 is already low. I know Capital one is a good company for refinancing and offer several options at refinancing. Like you can extended, keep the same or shorten your term. They also let you make bi-weekly payments (half payments every 2 weeks) and you knock off money on the long run. They also offer deferrals if times get hard.

Whatever you do, go with a shorter term. 72 months is insane.

Ask your dealership to show your the screen that lists out the bank options. I can tell you that with NMAC the rates are tiered, not to say others aren't, but I would ask them to explain how they came to that rate. If you are A tier, NMACs A tier may actually be 2.99%, all depends on the month, and they are not giving you the lowest rate. If the F&I person is experienced, they can tell you what your best options are. Also know that depending on where you are in negotiation, they may have decided that you using their financing options is part of the deal so they get a larger kick back. Just make sure you state your position and clarify that the price is out the door regardless of financing options.

RE better rates - Credit Unions can offer very aggressive rates but sometimes banks are lower depending on what business they need. I think to get the best rates from a CU, you need to be a member which means opening an account if you don't already have one.

:iagree: I think a 48-60 month finance is the longest you should EVER go. Even then, its kind of pushing it!

I'd be ok with 48 assuming I could throw additional cash at the principal every month. That way you can still revert back to the original low payment amount if you hit hard times. 60+? No way.

i walked into my Nissan dealer with a letter of approval from the credit union. Know what they did? They beat the interest rate!

This is called a simple interest loan. You can pay it off at anytime and making any payment over and above the amount due goes to principle.

I've had multiple car loans where any additional amount I paid went toward the next month's payment unless otherwise instructed.

Well a lot of times too a leinholder will adjust your payment down due to your extra amount paid reducing the principle owed in an attempt to recapture as much lost interest from an early payoff as possible.

The point is that leinholders are tricky and you have to scrutinize and ask all the questions up front b/c once you have a loan with someone it's not free to change if you don't like something.

well my us bank is only offering .09% less than NMAC is offering. im paying 600 a month and principal is 500 and 100 goes to interest. its insane dont know what to do.

btw guys, my license light got busted. i dont know why. where is the best place to buy LED lights and the brightest ones? autozone?

get a cheaper car

when did you get the car?

I know that usually spring time Nissan offers 0% for up to 60 months (for the past 2 years anyway). That's what I have.

Check PenFed or BankRate.com to see if they have cheaper options.

Check your local credit unions. My local credit union has 1.5% up to 60 months. https://www.pmcu.com/webfederal.asp?...een+Auto+Promo

You're joking right? He paid $31,000. That's $34,910 total and only had to pay $485 a month. At 60 months he'd have to shell out $570 a month and only pay out $34,246. I'm sorry but saving only $654 over the term is not worth a $85 payment increase. And Jesus 48 is even worse!! Its $699 a month and $33,591 total. I'll eat $1319 to avoid $699 like the plague.

I'm at 615 a month for 60 month term not too bad really lol

got mine at 0% through nmac, bought in March of 2012. I think they do it every year

Lol no that's bad.

Some people would rather pay less for the car, not have the smaller payment. There's a reason there's a rule of thumb that says if you can't pay the car off in three years you can't afford the car.

Payments are all relative to income. In 1997 when I bought my first brand new car and had a $300/mo payment on my $27,000 yearly income, it seemed like a lot. $673/mo on current $300k income is almost a rounding error.

Never heard of it and I don't know anyone that can do that. I never have a car longer then a year anyways so more money to play with the better. To each their own I guess.

I pay less incase something happens. I'm an RN, my job will NEVER go away, but I can't predict the future. If my motor goes and I need 5k cash I'd rather worry about a $400 payment coming up vs a $700 payment. You can always pay more a month to pay it off early rather than be forced to pay more each month.

If you bank the down payment you didn't make on the car, then you have a "rainy day fund" to pay for that hypothetical engine failure. You could also still "pay" the lower payment each month by covering the difference from tapping the "rainy day fund".

There are a number of strategies and they are highly dependent on a number of factors, but the main one is the interest rate. The higher the rate, the more making a bigger down payment makes sense.

this

if it's a burden on your wallet then you need to reprioritize

zero interest... n its a nismo..

that sounds like a Rule of 78 loan.....

A quick explanation of the "Rule of 78"


.

3.99% is ridiculous. Check credit unions. I have mine at 1.99% for a 30k loan on a used 2013.