Nissan Dealers Cashing In On 7-Year Loans With APR Markup

Dealers asking over MSRP have caused outrage and frustration among car buyers, but it’s not the only way salesmen are squeezing the pips out of people already struggling with the higher cost of living. Some of them are now making extra on your car financing, too.

Starting this week, Nissan’s finance arm is allowing its dealers to mark up its longest loans. According to CarsDirect, Nissan Motor Acceptance Company (NAMC) issued a bulletin to its dealers authorizing them to mark up 84-month vehicle loans by up to 1.5 percent, potentially costing the buyer thousands of dollars over the full term of a loan.

CarsDirect reports that Nissan’s most attractive rates are already only available on shorter loan terms because the company is battling an inventory shortage. Loans longer than 48 months are only available with standard rates, but with many drivers feeling the pinch thanks to the increase in the cost of fuel, food, and household bills, many are tempted to take out loans with longer finance terms, including 84-month loans to keep their monthly payments down.

Related: 84-Month Car Loans Becoming More Popular As Automakers Want To Keep Prices High

With Nissan’s new 1.5 percent markup in place, the standard 84-month rate for buyers with top-tier credit is 5.85 percent, says the report. But it’s likely that many of those buyers needing longer loans don’t have top-tier credit, and that’s where the picture gets ugly. The 84-month rate jumps to 7.26 percent for those with Tier 2 credit after the new markup, and if your finances are really in the hole and you’ve only got Tier 6 credit, you’re looking at a terrifying 11.45 percent rate.

However, as the report warns, rates can vary from brand to brand, and even between models within the same brand, so despite Nissan’s nasty markup, you could still end up paying less for your car than one from another carmaker. According to the same report, even a customer with top-tier credit looking for an 84-month loan on a 2022 Ford Bronco Sport will be stuck with a 7.9 percent rate, although switch your affections to an Edge, which the carmaker is presumably finding harder to shift, and the rate drops to 3.9 percent.

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