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Divide using place value

Nate tried to evaluate an expression step by step.
6432÷8=(6400÷8)(32÷8)Step 1=8004Step 2=796Step 3\qquad\begin{aligned} &6432 \div 8\\\\ \\ =&(6400 \div 8) - (32 \div8)&\greenD{\text{Step } 1}\\\\ \\ =&800 - 4&\blueD{\text{Step } 2}\\\\ \\ =&796&\purpleC{\text{Step } 3} \\\\ \end{aligned}
Find Nate's mistake.
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