The auto industry was hit hard in June when month-to-month sales took a big hit. Many car makers recorded a drop of between 10 and 15 percent in new car sales between May and June. Even Honda--one of the strongest manufacturers--recorded a decrease of nine percent. A lack of incentives to lure buyers back into dealerships, along with a sagging national economy, led to the poor result.
Nissan’s reduced sales volume in June reflected the fact that they have recorded strong sales in recent months. Their drop in June was just 7.5 percent compared to May, a remarkably good showing considering how badly other car makers performed. However, Nissan isn’t resting on its laurels.
Big Savings for Consumers
Nissan is offering a low APR or cash back on most models as part of its summer incentive program. If zero percent financing is to your liking, you already know that the longer the term of the loan, the better the deal. Most incentive programs have terms of 24 to 72 months.
Nissan begins its zero percent financing offer with a term of 36 months on the Altima, Cube, Rogue, Murano, and Pathfinder. If you prefer cash back instead of zero percent financing, you’ll get anywhere from $500 to $2,500, depending on the model.
Nissan ups the ante with zero percent over 60 months or five years, on a short list of models it’s eager to move out the door. That list includes the 2010 Maxima, XTerra, Sentra, and Titan CrewCab models. If you prefer cash instead of zero percent, you’ll get $1,000with the Sentra, $1,750 with the Maxima, $2,250with the XTerra, and $5,000 with the Titan.
Zero Percent is a Good Deal
How much can you save with zero percent? In a previous article we took the hypothetical case of a new car buyer borrowing $20,000. Instead of paying 5.99 percent at the bank, they took advantage of a zero percent incentive program and saved $3,193.80 over the term of a 60 month car loan. This is a real saving, and can make the difference between some buyers being able to get another car, or not.
There is another benefit to obtaining a zero percent car loan over 60 months instead of 24, 36, or even 48 months. Many buyers won’t qualify for a loan with these terms because a shorter loan translates into higher monthly payments. A 60 month term is workable for most budgets, especially when there is no interest added in that increases the monthly payment even more.
The Nissan incentives listed above are good until August 2, 2010.