Nissan offers zero percent loans on five models

Nissan Motor Co.'s Murano is displayed at an unveiling in Yokohama, west of Tokyo, September 2, 2004.

DETROIT (Reuters) - Nissan Motor Co Ltd said on Friday it is offering interest free loans on five vehicle models to boost sales and assist buyers sidelined by the credit squeeze.

Nissan's loan offer covers the Nissan Murano SUV, Sentra, Altima, Versa cars and Rogue crossover SUV and is available for a term of three years.

The incentive, which runs through Jan 5, is expected to boost Nissan's U.S. sales results in November and December, Al Castignetti, Vice President of North American sales, said.

Nissan is also offering a lease deal of $199 per month on the 2009 model year Altima and Rogue SUV.

Nissan's U.S. sales in September were off 34 percent and sales were down about 3 percent through the first nine months of the year.

The automaker's interest-free offer follows a similar move by Toyota, which offered such loans across most of its line-up in early October.

U.S. industrywide auto sales plunged 26 percent in September and the adjusted annual rate of sales, a key figure watched by economists, bumped along at a 15-year low amid the severe credit crunch that has rocked U.S. consumer confidence.

October U.S. industrywide sales were expected to be worse than September with the annualized selling rate touching two-decade lows amid weak consumer confidence.

"We had a slow start to the month," Castignetti said. "The last ten days have been better."

(Reporting by Poornima Gupta and Kevin Krolicki; Editing by Bernard Orr)