Thank you Justin for your reply. I bought a new Nissan Altima. They had given me an out the door price of 23622 dollars. As mentioned before, I had given 10000 dollars down payment.The rest I got financed with Nissan Motor Acceptance Corporation for 1.9%.
Instead of financing for 13622, I was financed for 14128 and the dealer said the extra 500 dollars is for qualifying myself from Tier 4 to Tier 1 though my relative who had 751 FICO score was already in Tier 1.
I have got a printed quote for 23622 from the dealer. So will that work???? Please guide me.
Hi... by: Justin (Editor in Chief)
That ad should work and just tell them that you heard it was illegal to pass on bank fees to the customer. Unless NMAC (Nissan) has some sort of wierd program I've never heard of this sounds like it is bogus.
I've never heard of a manufacturers financing arm charging the dealer a fee to approve a loan to sell one of their new cars.
One last thing that hit me, but I didn't think it could be because of how you said this extra $500 was explained to you, could you be looking at the Total of Payments section on the contract?
If you are and that is where you are getting the 14,128 figure, then this includes your finance charge (banks profit). That is normal if this is the case and at 1.9% on a 48-60 month loan for the amount you are borrowing this charge should be in the $500-$600 range.
If you are sure it was added to the sale price, then tell them to pound sand and rewrite your contract. You could also call NMAC to see if there is such as thing as what the dealer described to you. Again, I'm almost 100% sure there is no such "buy down" for credit tiers.
Hope this helps,
Justin
Thank you Justin for your prompt reply by: Jithu
Hi Justin, I am going to contact my dealer and tell him that he has charged me an extra 500 dollars for no reason. The amount financed was for 14128 instead of 13622. Moreover the finance charges mentioned is 692.08 dollars. So totally at the end of 60th month i would have paid 14829 dollars for 1.9% APR. Moreover in my bill, all charges have been mentioned clearly like for example finance charge is 692, taxes 1750, documentation 156 etc...the sale price of the car is 22458 which includes the extra 500 dollars and it was that which confused me. If it was some charge related to financing and qualifying as he said from Tier4 to Tier 1, they could have shown it separately, isn't it??? Once again, Justin thank you very much for your advice.
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