[Source: Automotive News – sub. req'd]
GM: Take our cars please! - 0% financing extended until 7/07
Posted Jul 1st 2008 1:59PM
[Source: Automotive News – sub. req'd]
Posted Jul 1st 2008 1:59PM
I bought my CPO Audi 4 months ago at .9% and today GM is only at 2.9%??! No wonder they can't sell cars. No one wants them new, and they don't make it attractive to buy used.
July 02 2008 at 9:31 AM Report abuse Permalink rate up rate down ReplyGM sales in June fall 19%, but Toyota reports a 21% decline while Ford drops a staggering 29%.
And after all the Toyota crowing, maybe's, perhaps,shoulds' for the last 3 years, GM still holds on to the lead.
Put the money on the hoods, all of you.
They rename the cost of financing "Cash Back," and add it into the MSRP sticker, and then act like they're doing us a favor with "Zero" interest, or somehow 'giving' us money "back." If you pay them up front in full, you will pay X for the car. If you finance, you pay X+Cashback. So what is this CashBack, some strange figure that gets tacked onto the cost if you decide to finance the car? Oh yeah, INTEREST. Take a "$56,000" Escalade with $6000 cash "back".
$56,000 at 0% for 36mo = $56,000
$56,000 - $6000, financed at 3.78% for 36mo = $56,000
I'll add, it works out to pretty low interest rates for long-term financing, e.g. that same example is 1.89% for 5 Years! But it's still not zero.
July 01 2008 at 4:25 PM Report abuse Permalink rate up rate down ReplyThe only good vehicles coming from GM are trucks and SUV's and I'm certainly not buying one now.
GM has spent too many year focusing on there truck platform and have ignored their sedan lineup. GM needs to focus on making a better quality vehicle. Toyota and Honda manage to build the best cars in their class without breaking the bank. Chevy and Ford need to learn what the Japanese learned 20 years ago.
Chrysler just needs to fold up and call it quits. They couldn't build a quality vehicle even if they had the blue prints on an Accord.
Funny thing is, it was an American who taught the Japanese everything they know about producing quality cars. It was called the 8-steps or something like that. I forget the guys' name.
July 01 2008 at 3:53 PM Report abuse Permalink rate up rate down ReplyUpthewazzu:
His name was William Edwards Deming and I believe they have an award named after him in Japan.
Surely you jest. I have the money in hand if GM wants to give me 20k under invoice on a C6 Corvette. Further, I'm ready to sign if they want to let me finance < 30k at 0%.
July 01 2008 at 3:17 PM Report abuse Permalink rate up rate down ReplyWow, when did this become "EconomyBlog" ??? Whether is this beginning or not beginning, we can't tell, but there always is a beginning. If the "true definition" is two CONSECUTIVE quarters of negative growth, then how do you know we're not in the beginning of the first quarter of two quarters (or more) to come? If I'm "half way" through my life, but I don't know when the end is? How do I know I'm half way there? :p
July 01 2008 at 3:13 PM Report abuse Permalink rate up rate down ReplyActually we are in a recession by all measurable data from within the country. The only thing keeping the GDP numbers from slipping into the negative is the sale of oil and big ticket manufacturing goods that are exported.
All other measures are down. We have been in a silent recession ever since the dot-com collapse. For most people there never was a recovery. 8 years later I still can not get a job at the same salary level that was offerred to me right out of college. We lived in this alternate economic world where net worth increased from rapid unfounded growth in real estate value, that has now collapsed. How can an economy sustain itself when housing values triple in less than a decade but the real average salary numbers stagnate. It just can't happen so we get a huge real estate bust.
If you want to buy a car this is a great deal if you can get it. Even if you are upside down on your current car by $5000 you'll still come out on top with 72 month 0% interst financing. Now is the time to give the dealer an outrageous offer. They'll probably take it. I would ask for $2000 under invoice for a '08 Malibu and 72 month 0% interest. They'd take it in a hearbeat just to sell the car.
Mitsubishi for the record got into a lot of trouble because they gave the deal to almost anyone regardless of credit and deferred the payments for one year. The deprieciation of the cars was horrible so after one year people had cars that were worth much less than they paid for them. The deal also had the unfortunate timing of being right before the tech collapse and payments started right around 9/11 when a lot of people lost thier jobs. SO people just said screw it and handed the keys back. Since the value of the cars were so much less than what was owed to Mitusbishi financial, they lost billions.
I was pissed because I bought my Eclipse 2 months before the 0-0-0 deal came out. I would have saved about $150 a month or more.
Malibus are not included in the 0% offer. At least according to GM's website. 2k under invoice wouldn't work for a Malibu, since those cars are moving. It would probably work for an SUV, though.
July 01 2008 at 4:25 PM Report abuse Permalink rate up rate down ReplyRecession or no recession, people aren't willing to spend money, especially on cars that are less fuel-efficient.
-1% financing sounds like it would be the ultimate desperation plea to come buy a car, but 0% along with a hefty pile of cash on the hood could accomplish the same thing. Which will might be necessary to move Suburbans and Yukons.
whoops, double post.
July 01 2008 at 2:41 PM Report abuse Permalink rate up rate down Replyyou mean triple post?
July 01 2008 at 4:03 PM Report abuse Permalink rate up rate down ReplyDidn't Mitsubishi try this same 0% financing about 10 years ago? If I remember correctly it blew up in there face.
July 01 2008 at 2:41 PM Report abuse Permalink rate up rate down Reply