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GM pulls out early of used-car incentive, dealers not happy
It's not that General Motors doesn't want its dealer body to shift certified pre-owned Impalas, G6s, Silverados, or Sierras. GM rolled out a program to help make the used cars attractive by offering 60 month loans with a 3.9 percent interest rate between October 1st and January 5th, thus helping dealers close deals on higher-margin inventory. Just a month in, however, GM is folding up its incentive tent and going home, leaving dealers holding the bag on lots full of cars they'd bought in anticipation of selling as part of the program. GM's reason for killing the incentive program on November 3rd is a lack of credit, though the automaker plans to introduce a new certified pre-owned incentive on November 4th. In the meantime, you can likely get a lightly used example of the featured cars for a very attractive price.
[Source: Auto News - sub req]
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Reader Comments (Page 1 of 1)
Gardiner Westbound 2:39PM (11/01/2008)
The rationale for buying a CPO car is the warranty. What's the point if there's a risk GM won't be around to honor it?
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Gabagool 2:54PM (11/01/2008)
So GM managed to screw everyone, consumers, unions, dealers, suppliers, taxpayers, government, shareholders, all but the executives.
Interesting. When will TATA start selling in USA?
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knifetramp 3:48PM (11/01/2008)
Giga Drool, your consistenly negative comments aimed at GM are tiresome. The company is under financial stress and only non-Americans and the truly stupid should celebrate their demise.
DasBoese 4:48PM (11/01/2008)
Even non-americans have no reason to be happy about GM's current problems. GM is a global company after all.
happy_penguin 1:38AM (11/02/2008)
"Gabagool @ Nov 1st 2008 2:54PM
Interesting. When will TATA start selling in USA?"
When the NHTSA is abolished.
ckm 4:37AM (11/02/2008)
Tata already does. Do your homework.
xj 4:40PM (11/01/2008)
Yeah Gabagool, GM is screwing the unions. Riiiiiight. Everyone knows who is doing the screwing in that arrangment.
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Gabagool 5:02PM (11/01/2008)
Who has taken a bigger pay cut, rank and file or executives?
Also GM has no problems firing regular employees but has yet to fire a single executive.
phewop118 5:37PM (11/01/2008)
That's stupid that they cancel this financing deal. I was just about to get a CPO GM within the next few weeks on either one of the 3.9% or 4.9% apr vehicles. Now I'll have to settle for 6.xx%. Way to waste money on interest for me. Oh well, at least GM's large SUVs (lightly used) are dirt cheap now, making it an opportune time to buy.
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Don 10:10PM (11/01/2008)
Just in time for what? Another spike in gas prices?
Sharone 8:23PM (11/01/2008)
Dear Rick Wagoner
File for Chapter 11. While you still have the option of avoiding 7.
Love
Autoblog
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Don 10:09PM (11/01/2008)
Are you kidding? Maximum Bob is fighting to the very end and taking everyone with him!
Don 10:08PM (11/01/2008)
Eagle-eyed car-o-philes will have noticed that GM seems to be seesawing quite a bit on certain decisions.
I think things are starting to get REALLY tight.
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catgirlshyla 12:57AM (11/02/2008)
So does this mean they also dropped that Used Car Ambush sca....erm, I mean advertising campaign they've done as well?
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Shane From Australia 4:22AM (11/02/2008)
My advice ... buy from Toyota, atleast we are guaranteed they will be around for many generations yet.
I have driven Toyota's for years and have a great run from everyone of thier cars. My Next buy ... the new Supercharged 3.5 V6 TRD Aurion - what a great car !!
Oh yeah ... and while Ford and GM continue to axe jobs, atleast (todate) Toyota has strived significantly to retain employment. When they stopped production of the Tundra for 3 months, they directed thier employees to other avenues until production commenced again.
If that is not a form of loyalty to the US market / economy / people - then what is !!
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CARGOD 9:42AM (11/02/2008)
WHY IS WAGONER STILL THERE??? HE WOULD HAVE BEEN BLOWN OUT OF ANY OTHER CORP. BY NOW..MUST REALLY HAVE THE BOARD IN HIS POCKET!!!$$$
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Sandy 6:57PM (11/03/2008)
In 1998 I bought new a Lincoln Mark 8. I kept that car (and loved it and all of its features) for 5 years, sold it to my dentist's nurse, she still has it. I then bought a new 2003 Lincoln Town Car, (over) Loaded with goodies. It's now 5 & 1.2 years old. I am keeping it for awhile longer. In the 10 years, I have had to replace 1 headlight ! That is the total repair(s) that I have had.
My wife has a 2001 Jeep Cherokee (XJ) {the original small(er) Cherokee} ~ The top LIMITED Edition 4X4. At 55,000 miles that car need a muffler. Exhaust & tailpipe were fine, just a muffler. The passenger side front Fog Light blew and we paid for the replacement, as well as the muffler. THAT is the total out of pocket expense, for the 7 years.
.. you, up there want me to buy a Toyopet?
NEVER ! My personal experience is that the American Corporations make the best cars.
41,000 on the Mark 8, 22 thousand on the Town Car & 55,000 on the Cherokee = 118,000 miles combined and 1 muffler, 1 headlight and 1 fog light, in 118,000 miles, driven by 2 drivers.
Phoey on Toyopet !
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JohnAngelo 6:12PM (11/02/2008)
Cerberus is squeezing GM, geniuses..
Cerberus owns ~80% of Chrysler and 51% of GMAC.
GMAC announced tougher qualifying rules for retail loans and increased wholesale charges for dealers a couple weeks ago.
It seems Cerberus wants GM to buy Chrysler and is exerting lots of pressure.
Only possible upside for GM is the alleged $10B in cash that Chrysler has. Then there is the much larger downside: too many Chrysler Dodge and Jeep dealers, no new products, too many overlapping products,... what sense can this make? Daimler AG wrote off the asset value of their interest in Chrysler. Publicly held dealer groups have written off the value of the domestic dealerships. If the $10B is really the motivation for the merger, then GM seems incapable of recognizing how they got into their present position. (Making decisions that benefit the month or the quarter at the expense of the next 2-5 years.)
Oh, to be a fly on the wall in the merger discussions. GM has to be waaaay more desperate than even AutoBlog readers think.
So, GM can't or doesn't want to support their dealers anymore with finance products. But they can offer incentive to place a loan with any bank, credit union or lender other than GMAC...
Why doesn't GM open the Goodwrench Credit Co. and tell Cerberus to go back to guarding hell?
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Polly Prissy Pants 8:28PM (11/02/2008)
"GM pulls out early of used-car incentive"
ESL perhaps??
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rtrower 5:23PM (11/05/2008)
To set the record straight, GM is now offering cash incentives to their dealers for every certified vehicle. Compare this to the APR specials which were offered on only select vehicles, and you can see GM is not walking away from offering a great value on these cars. Is there a credit crunch at GMAC? Yes. The reality is if you have good credit (remember "well qualified" was always a GMAC requirement) you can find rates either equivalent or within a half point of what GMAC was offering from banks and credit unions. The truth is if you negotiate well, you might even be able to lower your overall cost and monthly payments. Do your homework before you throw stones my friends.
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