Approved for my first car loan Yes! How to raise Scores?

[Appleman]

It is always a good thing to recheck the paperwork. 

First the extended warranty. First good job that it is a Nissan Warranty. One thing most people do not know is that the cost of the warranty is negotiable. Chalk that one up to experience for next time. Also, people can often but a factory warranty online and even save on the sales tax. You can always cancel the Nissan Warranty and pick it up again just before it your factory warranty is about to expire. 

If you cancel your Extended service contract you would keep the same payment but cut of at least 13 payments!!!  If you make payments as currently scheduled you waill pay about $16,375. Drop the warranty and you will pay $12,475 and be paid off in 4.5 years... A savings of $3,900. So this is the true cost of you extended service contract, $3,900. You have a 3 year bumper to bumper and a 5 year 60K powertrain warranty on the car.

Your payment of $225.66 is what it should be for a 72 month loan at 4.69% and a starting balance of $14,110.19.v (In you original post you said the loan would add up to $17,580, the new amount makes more sense).

So...Your condition is much better than the first numbers you provided. I would recommend that you cancel the Nissan Warranty. They will refund the cost plus tax to your loan company if it has been less than 30 days. Otherwise they will prorate the refund. In 4.5 years you will own the car outright and still have a powertrain warranty. If you decide you need an extended warranty as you approach 3 years or 36,000 miles look at some of the Nissan Versa discussion boards and ask them where they purchased their warranties. Some place will even finance your Nissan warranty at zero percent for a year.

The other postive side of getting a refund on the extended service contract is that it will be easier to refinance the vehicle. You will owe much less than it is worth.

I wish you luck.

[StartingOver10]

Awesome post by Appleman. You will save thousands this way and still have a decent payment. 

[Appleman]

Of note, if you finance the warranty later it is usually not a HP or reported. You provide a credit card and they will charge you credit card monthly.

[Anonymous]

Appleman you have saved me alought of $3900 refund is going to happen on my next day off ! This forum is the best thing to happen in my internet life 🙏. I have talked it over with a nice romantic date with the wifey she stringently disagreed at first , I advised her of are rights in the state of Nevada and that the entire point of having a new car was to enjoy it . That worring about something breaking is not part of are house plan. The less we spend the faster we can have are dream home thanks you guys so so so much .Ill keep you updated once I get the refund . The only thing I’m a little I guess you could say anxiously wanting to know is since I fell for a sales ploy of hey we can make your payments this low if you get the warranty . When I return the warranty they cannot change my apr which the loan is in right ? Since it is already sorta set in stone with chase and they just played a numbers game to make it appear as if I was not even paying for the warranty when in return they increased my rate then decreased it ? Thank you thank you thank you for the amazing reply’s Appleman

[StartingOver10]

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@Anonymous wrote:
Appleman you have saved me alought of $3900 refund is going to happen on my next day off ! This forum is the best thing to happen in my internet life 🙏. I have talked it over with a nice romantic date with the wifey she stringently disagreed at first , I advised her of are rights in the state of Nevada and that the entire point of having a new car was to enjoy it . That worring about something breaking is not part of are house plan. The less we spend the faster we can have are dream home thanks you guys so so so much .Ill keep you updated once I get the refund . The only thing I’m a little I guess you could say anxiously wanting to know is since I fell for a sales ploy of hey we can make your payments this low if you get the warranty . When I return the warranty they cannot change my apr which the loan is in right ? Since it is already sorta set in stone with chase and they just played a numbers game to make it appear as if I was not even paying for the warranty when in return they increased my rate then decreased it ? Thank you thank you thank you for the amazing reply’s Appleman

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You have a new car that is under the manufacturer warranty right now and will stay that way until the mfg warranty is done. Check your paperwork for that info.

The warranty you are cancelling is the extended warranty - which is the one that is extremely expensive and not necessary right now.

I have no doubt that the finance person tied in the interest rate reduction to getting the warranty.  HOWEVER, it is not legal to do so. The extra warranty you were sold is an optional item and the finance person can not (nor the bank) charge you a higher interest rate for refusing the warranty.  Read your purchase contract where the financing is detailed and you will see that the warranty is optional and not tied to the interest rate.  Finance people use it as a hammer all the time and not many consumers are aware that they can't increase an interest rate because you choose to not have the additional warranty. This particular deception has been going on for decades in car sales. 

To answer your question directly:  No, Chase (nor anyone else) can change your APR when the warranty is cancelled. 

Also, it is more likely than not that Chase never increased your rate. The F&I person plays a game when you are in that office: he quotes a rate higher than the buy rate the bank quotes and if you accept it, he is happy because he gets paid extra commission for quoting a higher rate. If you keep saying no to the rate, the rate continues to drop. Never accept the initial rate unless it is one of those promo zero rates or some other promo less than market subvented rate.  

[Appleman]

StartingOver10 nailed it exactly. 

Remember, you will not get a refund of $2995. When the extended service contract is cancelled they will send that money to Chase and they will apply that to your auto loan. So, your payment will not change but your payoff date will be MUCH sooner. The $3900 figure is the cost of the warranty plus interest that would accrue until the loan was paid off. (If you took out a 72 month loan for the extended warranty alone it would cost you $3,442 with the added interest. But beacuse that is the last thing that would be paid off with your car loan, the actual cost is the $3,900 i quoted)

When you go into cancel, be ready for a bit of a fight. The dealer was going to make a lot of profit off of your extended service contract and they will try every hard sell to have you keep the contract. "Don't you care about the safety of your wife?', 'Remember the problems you had with your truck?' They are likely to team up on you, 'You know your payment will not go down?' (You counter yes, but it will go away a lot sooner). If you have a friend who is a skilled negotiator to go with you that would even be better. 

Also, once they do cancel it, get it in writing and you will have to remain vigilant. I have had some refunds go through in a few weeks and one that took 60 days and 2 additional trips to the dealer. Just keep an eye on your Chase account balance and you will eventually see the credit. Because it is the Nissan warranty it is pretty easy to call that national number to see if the refund has been submitted.

I am all for a car dealer making a profit, it is how they stay in business. I do however hate the car buying process that lets innocent consumers get taken to the cleaner.

Tell you what, call Chase directly. Ask them can the dealer change my APR based upon IF I buy an extended warranty or not? That way if the dealer tries to bring that up, tell them that the Chase representative said absolutely not!

The myFICO forum is pulling for you! We all want you guys guys to be happy in that new house in a couple of years. Please update us on your progress or if you have any questions.

[Anonymous]

Wow you guys Rock I’m going to call chase today and make sure the apr does not go up . You guys have helped me immensely understanding The economics of how the interest works . The is is going to fill my clip up with ammo , so now when I go into the dealership I have facts “ chase said I’m locked into my interest rate and that I’m declining my extended warranty. 🙏 I’ll keep you guys/ gals posted .

[Anonymous]

Alright good news yes Guys/Gals Chase Auto Finance has confirmed I’m locked into my APR . Next stop is when I get some time to head over to the dealership with my negotiatior ( The amazing Wifey) .

[Anonymous]

Alright Guys/Gals today had a nice time today with my negotiator ( 🌹 my amazing 😉 Beautiful Wifey ) The Finance Manager informed me,I can process this for you “But”it will take 90 days to reflect & I was straight up with him . I informed him I would like to process this right now, that I’m in sales also and I do apologize about the inconvenience  . I was very adamant about informing him I just worked 15 days straight & no incentive would change my mind . He countered with I could fill up your tank . I informed him the proration of $90.74 that I would pay after the 90 days is pointless when a tank of gas costs me $22.38 . That comment alone he lost all balance and began processing the paperwork !! Thank you 🙏 thank you 🙏 thank you 🙏 MyFicoFamily !!! You Talented individuals have greatly improved the lifestyle of myself and amazingly 😉Beautiful Wifey $2995 back into the loan wahoo!

[Appleman]

Thanks for the update! Enjoy the factory warranty and you can re-visit the extended service contract when your warranty is about to expire. Congrats.