New Graduate Program

[sambot]

Has anyone cashed in on Nissan's New Graduate Program?

When we ordered the car, the salesman told us that the program did not apply to the Versa. I recently checked the site, and they have added the Versa, but it seems that it only applies to financing.

http://www.nissan.ca/en/general/grad.html

Paying cash for the car, am elegible for the rebate and would love to save a little. Yeah, old geezers can still graduate from post secondary institutions.

[themanfromvlad]

The website states:

All new 2007 Sentras, Altimas, Xterras, Versas and Frontiers leased or financed through NCF.

Seems like you can lease and qualify for the rebate as well. You also qualify if you are buying. Your price should be adjusted.

[7speed]

We discussed it with our salesman, but for one, I haven't graduated yet, and second, the rebate was only $350. I know it's 350 I'd rather keep in my accout, but in the grand scheme of things, it's not that much.

...my .02

[proxim2020]

This is a pretty good example of how you can't get something for nothing. Part of the condition (as far as the US and I think applies to Canada) you have to either finance or lease. Either way, they're going to get that $350 back easily. There's $500 for the US. Anyway, they are going to make that money up through interest. If you're paying cash, you're already much better off than those who get the $350 discount.

[7speed]

True, but in Canada, when I bought my V, we got the 1% financing deal. Granted we had to put 40% down to get that rate, and Nissan will make up for the reduced interest rate by investing the down payment, but no matter how you slice it this car is great value.

Any compact I can sit in the back without slouching or crunching my neck is good value to me.

[gottafly]

If you have the cash ready to buy the car, how about buying the car through whatever financing requirement there is to get the rebate and then paying off the principal of the loan with Nissan Finance shortly thereafter?

[TweeKeer]

If you have the cash ready to buy the car, how about buying the car through whatever financing requirement there is to get the rebate and then paying off the principal of the loan with Nissan Finance shortly thereafter?

ding ding ding...you can finance it for one month, and then pay off the principal, thereby acquiring the grad rebate AAAAAND not paying interest.except for 1% over 1 month hhahahahaha.

[proxim2020]

ding ding ding...you can finance it for one month, and then pay off the principal, thereby acquiring the grad rebate AAAAAND not paying interest.except for 1% over 1 month hhahahahaha.

It doesn't really make sense. You have to pay interest (even if the 1% was available), origination fee, application fee, finance fee, maybe even an early payoff penalty(which would be wise of Nissan to incorporate to prevent this from happening). It would quickly add up. Most people don't pay attention to these small fees when signing the financing papers mostly because they are being added to the loan and aren't asked for upfront.

[gottafly]

I don't think there is any problem - unless they do have some clause to protect their rebate program from opportunistic borrowers, like in the scheme I proposed. I don't know how they can coordinate this, or do it legally, as the rebate money comes from the manufacturer and not the dealer, and simply reduces the price paid by the buyer.

I financed my V with Nissan and there were no fees charged for borrowing from them. Those fees you mention sound like typical dealer scams for making a few extra bucks. You can also pay back any small loan in full prior to the term with no penalty in Canada. I think it would be illegal to try and charge any kind of penalty - so how they could justify clawing back their rebate after the fact is beyond me. Even if it takes you a month or so to sort out paying off the loan, if there is no clause to prevent this, you are still way ahead on the amount of the rebate you would clear.

[Robi]

Hey Sambot ... why pay cash. The 1% over 60 months is a "no brainer"

[proxim2020]

The fees are typical fees charged by the financing company and the dealer has no stake in the fees. When you "finance through the dealers" most times you're really financing through one of the dealer's preferred banks. The dealer has the flexibility of adjusting the rate, term, down payments, etc. The terms still need to be approved by the bank before it can be given to you. In larger dealership, sometimes there is in house financing. The money loaned to you from the dealership and you pay back the money to the dealership. In this case, the dealer benefit from all the fees.

Pay careful attention because sometimes these fees are hidden. The dealer will just tell you how much you're paying a month or the total, not an itemized list of what you're financing. A lot of times these fees are still charged, but they too are financed with the car. $500 worth the fees financed normally will only amount to somewhere near $10 extra in monthly payment and an oblivious buyer wouldn't notice. The first chance you will have to see these fees, in this situation, is the moment when you're signing countless pieces of paper. Pay careful attention to the papers you're signing.

Early Pay Off Penalties are actually pretty common in most loan situations. Student loans, car loans, mortgages, etc. Finance companies charge this fee because if you pay off your loan early, they miss out on interest that they could've collected from you. It's more of a last kick in the pants because you're leaving. Here in the US, the fee is perfectly legal and has been around for decades. Online loan companies like E-Loan and Capital One, boast no early pay off penalties and a reduction of fees charged. Many Brick and Mortar banks still charge the fee, but since most are in competition with online companies, we are seeing more and more companies waiving the fee.

[themanfromvlad]

In Canada, Nissan purchase financing is OPEN, so you can pay off the balance at any time without any penalty. But if you've got 1% interest, there is no reason to pay it off, because you'd make more money by putting that cash in an investment.

[sambot]

Thanks all for your thoughts. No, we're not going to finance the car. If financing requires more hoops to jump through, like extended warrenties, etc., it's not worth the effort.

The car is at the dealership, although nobody's told us that yet - checked the on-line inventory. Maybe I can use this for some leverage for some extras.

This car better be worth all the frustration of trying to own one.

[themanfromvlad]

Thanks all for your thoughts. No, we're not going to finance the car. If financing requires more hoops to jump through, like extended warrenties, etc., it's not worth the effort.

The car is at the dealership, although nobody's told us that yet - checked the on-line inventory. Maybe I can use this for some leverage for some extras.

This car better be worth all the frustration of trying to own one.

There are no extra hoops for financing or leasing from Nissan Canada. You do not need an extended warranty. The credit application is the same. There is no extra effort.

[sambot]

There is no extra effort.

The cheque has been certified, the spouse is grumpy, the thought of having to spend one additional minute filling out forms, is more effort than I'm willing to expend. The other half would never consider buying a car on time.

I'm still going to give it a go. When we ordered the V, we were told that the grad rebate program was not applicable to the V. That has changed in the last 4 months. So we're off to the dealership to try and find the car, that is supposed to be there, and maybe finish this deal.

[themanfromvlad]

the spouse is grumpy,

That's all you had to say. Understood.

That said, Nissan should give you that rebate in my opinion, because you've had the right to cancel your order during your four month wait.

[7speed]

Early Pay Off Penalties are actually pretty common in most loan situations. Student loans, car loans, mortgages, etc. Finance companies charge this fee because if you pay off your loan early, they miss out on interest that they could've collected from you.

I totally agree with you, since my mortgage has an early buy out penalty. I can pay 10% of the original borrowed amount per year without penalty though (not that I have that kind of cash flow).

Also, in Canada, you can negotiate how to pay off student loans. If you can pay it all in one chunk, there is no penalty. And the interest on student loans is tax deductible. That doesn't mean you get all the interest back, but it does reduce your effective rate, as well as potentially reducing the amount of income tax paid.

[TweeKeer]

In Canada, Nissan purchase financing is OPEN, so you can pay off the balance at any time without any penalty. But if you've got 1% interest, there is no reason to pay it off, because you'd make more money by putting that cash in an investment.

I was hoping someone would say something. I work with CIBC, RBC and Wells Fargo on a daily basis and there's no penalty for paying off student loans or credit.

Nissan has it's own Finance company, it doesn't finance through banks, unless it's on old product, like 2006s now.

Fees are itimized in Canada (atleast at our store), so you know where the price breakdown in the cost of your car comes from,

[gottafly]

In Canada, IIRC, mortgages and personal loans under $100,000 have different rules. Mortgages can restrict prepayment, but the other type of loan can't. Has something to do with securing the loan with real property (property in mortgage) or not - I think. But now I'm reaching back to my heretofore forgotten finance courses in University. Any banking experts out there?

[girly]

I just put down my downpayment today. I've been doing everything over the phone so far. She said I'ld probably qualify for the new grad deal but I haven't heard back from her yet. I'll post when I find out.

[rbswimrun]

I qualified for the New Graduate Program. Took in my degree/certificate. It is for $500 off which to me was good. You must finance through dealer. Unfortunately, the Versa SL we waited 3 months for did not happen as the salesman made a slightly different order than what we placed so we ended up buying tonight a 2007 Honda Civic EX Sedan. What I was surprised about is that City Mileage is supposed to be 30 and Hwy 40. Even if it is 2 miles less per gallon perhaps in reality, I am still impressed and OUR financing makes our payments the same as Versa so we feel we came out ahead.

[sambot]

So the salesman made a copy of my diploma, filled out a form and told us he would submit it.

If I get the money, maybe it will go in the direction of helping to pay for fog lights, or maybe tinting, or maybe gas, or something.