Nissan Is Chasing Subprime Borrowers Again and That's Your Problem

Nissan announced this week it's expanding its subprime lending program through its captive finance arm, approving loans for buyers with credit scores as low as 580. They're pairing this with extended 84-month terms on most models and rate buydowns that bring APRs down to 7.9 percent for qualified subprime borrowers.

This is a desperation play. Nissan's US sales are down 11 percent year over year, and they're sitting on 110 days of inventory when the industry average is 65. Rather than build better cars or cut prices honestly, they're loosening the credit spigot to move metal.

Here's why you should care even if you'd never buy a Nissan. When manufacturers chase subprime volume, they create two problems. First, they're loading up financially stretched buyers with long-term debt on depreciating assets. Those 84-month loans mean people will be underwater for five or six years. Second, when those loans inevitably default at higher rates, you get a flood of repossessions hitting the used market in 18 to 24 months.

We saw this exact pattern in 2018 and 2019 with Nissan and FCA. Subprime lending surged, then repos flooded wholesale auctions, dragging down used values across entire segments.

What You Should Do

If you're shopping now, this is useful ammunition. Nissan dealers are clearly motivated, so negotiate hard on price rather than taking their stretched financing. Pay cash or bring your own financing from a credit union.

If you own a Nissan or a competitor in the same segments (midsize sedans, compact crossovers), consider your trade-in timeline. Values might face pressure in 2028 when this subprime wave potentially washes back into the market. Check our sell or keep guide if you're on the fence.

Don't let a manufacturer's inventory problem become your financial problem.