Urgent: A Final Concern - Altima Forums.net - The Nissan Altima Enthusiast Talk and Discussion Forums

Kalon · 08-08-2008

New Here...was wondering if anyone could clear one thing up for me. Deal is on the table. 2008 2.5S with a few options thrown in. Looking at $19,464 for the car. After my finance charges are thrown in, I'm looking at 23,374 as the total amount paid for the car. After that it says deferred price: 27,624...what the hell is that?!

Again to clear up...this is what im reading off.

Total Financed: $19,464
Finance Charge: $3909
Total Of payments: $23,374
Deferred Price: $27,624 (what's this mean?)
Unpaid Balance: $19,464

I'm more than pleased with the entire deal AKA term, price of car, APR, monthly payment, cost of monthly insurance. This would be going thru NMAC(AKA Nissan) @ Tier 0 financing. I'd really appreciate someone clearing this up as I'm looking at buying tonight. Thanks!

klfutrelle · 08-08-2008

This contract, also known as a "No Price Established" contract, provides the seller the opportunity to deliver and transfer ownership on the contract date, but without setting a sales price. The buyer generally charges an up front or monthly fee. The producer retains the basis and futures price risk and opportunity in this contract until the sales price is determined.
Example: On November 1, a producer delivers to the local elevator and enters into a deferred price contract. On January 1, the producer prices the contract at the current elevator bid, less the delayed price (DP) charge.
Risk to Seller
The seller retains futures price risk and basis price risk until the pricing date. The seller also is subject to production risk; that is, the producer is responsible for delivering the contracted amount on the delivery date.
Risk to Buyer
If the buyer maintains ownership, there is no futures price risk or basis price risk. However, if the buyer chooses to sell these "unpriced" bushels to a third party (processor, feedlot, etc.), the buyer assumes basis risk and, potentially, futures risk and spread risk.
Who Might Use This Contract?
A producer who believes the market will rise and who is in a strong enough financial position to bear the risk of a market turndown.
Upside Price Potential. Even though the producer transfers ownership to the buyer, he or she retains the opportunity to benefit from prices rising.
Downside Price Potential. The producer also retains the risk that prices will fall between the time the contract is entered and the date on which the sales price is determined.
When Might This Contract Perform Well?
This contract will perform well if markets rise following the contract date. However, this outcome may depend on the producer judging correctly when to establish the sales price.
When Might This Contract Perform Poorly?
This contract may not perform up to the producer's expectations if prices fall after the contract date.
Mention of product names or firms does not necessarily constitute endorsement by the Risk Management Agency or the U.S. Department of Agriculture over others not mentioned, and is for information purposes only.

Maybe this will help.

VictorE1123 · 08-08-2008

it is the sellers responsibilty and their obligation to clearly explain every term in the contract. Never ever enter into a contract unless you understand the terms completely. With that said, it sounds like a term possibly contingent upon your ability to fulfil your payment obligations on time. If you miss a payment (or multiple) the balance on the loan shifts to the deferred price. The only person who can safely answer this question is the seller. Good luck...

Kalon · 08-08-2008

Vic it seems like from what you said it makes sense. But my credit is spotless, and i know without a shadow of a doubt I can afford this car.

Update: Not going tonight. My father is going to go through his job and get the car. It 's very possible that my total price can come to <$19000(with TT&L) because his coworker's daughter got the car for $18500(this includes TT&L). That would allow me to take my bank's financing, shave a year off the term (from 72 to 60 months) and the car note drops (from $325 to $295). Most importantly, I may not even have to come out of pocket.

To clarify, the cash price I had was $21700. A co-worker bought the 2.5S for $23000 last night. I see guys on here paying $20500 for SL's. This is why I always sleep on big decisions.

VictorE1123 · 08-09-2008

Sleeping on big decisions is always a smart thing to do. With the market the way it is, even people with excellent credit (750+) are having a difficult time securing well negotiated loans. You sound like you've put a lot of thought in to this purchase, I'm sure you'll find what you're looking for.

DJ · 08-09-2008

Quote:

Originally Posted by VictorE1123

Sleeping on big decisions is always a smart thing to do. With the market the way it is, even people with excellent credit (750+) are having a difficult time securing well negotiated loans. You sound like you've put a lot of thought in to this purchase, I'm sure you'll find what you're looking for.

I can vouch for that. Right now, it is extremely tough to get banks to offer loans to anyone including businesses. If you can get a loan even with a slightly high interest rate.. GET IT.. then later on when things get better, re-finance with a lower interest rate with same company or elsewhere.

Kalon · 08-09-2008

For those who wanted to know... Chase (my bank) offered me 6.69% interest for 60 months @ 295/month. NMAC (nissan) offered me tier 0 financing @ 6.14% interest for 72 months @ $325/month.

I'm probably going to take Chase's offer.

Kalon · 08-12-2008

FINAL UPDATE: Picking car up in a couple of hrs!!!!!

I got the exact color i wanted: Blue/Charcoal interior.

The skinny:
2.5S Conv. Pack; Spoiler, Power Pack.
$21,300 before TTL
Tier 0 6.1% Financing 72 mos.
$3000 down
$317/month

I just made 22 years old..I think I did pretty good for myself here.

VictorE1123 · 08-13-2008

Congratulations!

AltimaSL · 08-13-2008

Congrats and welcome! When you get it don't forget to show us some pics.

Kalon · 08-13-2008

I have it its just been raining down here and haven't gotten a chance to take pics. had it since about 9PM CDT yesterday...lol ill always remember the day i got my car is the day madden 09 came out. but i would say pics tomorrow.

Kalon · 08-13-2008

test: testing to see if my sig pops up.

AltimaSL · 08-13-2008

Speaking of pics i need to take some of my car as soon as it gets back from the DEALER SERVICE CENTER.

Kalon · 08-13-2008

what happened!??!! details my fellow altima owner! details!

AltimaSL · 08-13-2008

Quote:

Originally Posted by Kalon

what happened!??!! details my fellow altima owner! details!

I have a thread about it. in the 4th gen area.. I truly think i got a lemon. But ACCORDing (i miss my Accord!) to OUR state lemon law, it isn't..