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View Poll Results: Should GM offer 0% financing on all vehicles to help boost sales?
Yes! Offer 0% financing! 222 92.50%
No. It's not necessary (read reasons why in posts below). 18 7.50%
Voters: 240. You may not vote on this poll

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Old 05-16-2009, 01:07 PM   #18
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"0% financing is an illusion." This is a statement made by the finance guy in front of my salesman at the dealership this week. I was pissed because the salesman told me to get down to the dealership on April 30th because I was going to lose the 0% financing and the $4,000 rebates as of May 1, on the 3 Silverado’s I was looking at. I ran in there and quickly signed the papers and took off as I was busy working. A couple of days later I started looking the papers over and see I'm not getting 0% and I looked on the internet and GM is still offering the $4,000 rebate on Silverado’s.
I go into the dealership and ask what’s up with this. The salesman starts looking over his papers and says oh yeah, you’re right the $4,000 rebate is still in place. Then he says regarding the 0% financing he has to go get the finance guy. He comes into the room and tells me that since I’m buying for my business I can’t get 0%, it’s only for personal use vehicles. Then he says the 0% is really only an illusion to get people in the door. He says your credit has to be 850 or higher to qualify and good luck with that.
I told them if they needed those 3 Silverado’s to be sold by the end of the month, just tell me that and ask if I can help or do them a favor. Just fricking be honest with me and I’ll do what I can to help. Don’t get me down to the dealership on false pretenses.
Once again, let me repeat what the finance guy told me [I]“0% financing is an illusion.”[/I]
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Old 05-16-2009, 01:19 PM   #19
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Quote:
Originally Posted by Tanner View Post
"0% financing is an illusion." This is a statement made by the finance guy in front of my salesman at the dealership this week. I was pissed because the salesman told me to get down to the dealership on April 30th because I was going to lose the 0% financing and the $4,000 rebates as of May 1, on the 3 Silverado’s I was looking at. I ran in there and quickly signed the papers and took off as I was busy working. A couple of days later I started looking the papers over and see I'm not getting 0% and I looked on the internet and GM is still offering the $4,000 rebate on Silverado’s.
I go into the dealership and ask what’s up with this. The salesman starts looking over his papers and says oh yeah, you’re right the $4,000 rebate is still in place. Then he says regarding the 0% financing he has to go get the finance guy. He comes into the room and tells me that since I’m buying for my business I can’t get 0%, it’s only for personal use vehicles. Then he says the 0% is really only an illusion to get people in the door. He says your credit has to be 850 or higher to qualify and good luck with that.
I told them if they needed those 3 Silverado’s to be sold by the end of the month, just tell me that and ask if I can help or do them a favor. Just fricking be honest with me and I’ll do what I can to help. Don’t get me down to the dealership on false pretenses.
Once again, let me repeat what the finance guy told me [I]“0% financing is an illusion.”[/I]
It is sort of an illusion... for instance up here I think there is legislation requiring automakers to post the 'Effective Interest Rate" of the 0% offer.

It goes like this; Usually we have "Cash Purchase Option" which has a bunch of cash on the hood. You can take the 0% offer, but most of the cash on the hood gets taken away. So the advertisments have to factor that in, as your not really getting 0%. Your 'finance' charged gets rolled into the vehicle price and amortized over the life of the loan. If you sit down and crunch the numbers, at least where I'm from, you can usually get a better deal taking the cash incentives and financing through your personal bank.
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Old 05-16-2009, 01:27 PM   #20
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And we haven't even seen the worst of the next credit crisis: credit cards.
It'd be nice to see our Politicians have the balls to stand up to credit card companies, but apparently (as usual) they don't.
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Old 05-16-2009, 01:30 PM   #21
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Well for one GM does not have any lending. GMAC split off years ago and is mostly a real estate holder right now. It's namesake only but has not ties to GM other than working with them as an outside bank.

But GMAC should offer something like 3-4% to compete with the Credit Unions. Right now NCUA Credit Unions are the best fair deal in rates.

Edit add: Oops not years, more recently.
http://www.autosinsight.com/file/736...the-money.html

Last edited by Vash; 05-16-2009 at 01:34 PM. Reason: Timeline correction
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Old 05-16-2009, 01:37 PM   #22
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One way or other they need to make profit.

If they did offer 0% it is unlikely that they would offer that on the Camaro - simply too much demand.
GM needs to make as much money as possible on the cars that it can sell while staying competitive
Far more likely to do this on cars that they cant move or where they are weak against competition.

Why give away money on a car with 18000 backorders ?

Businesses will always want to maximise profit on new models with early adopters who buy lots of options and higher end models.
Does not matter if talking about cars, motorcycles, computers or bluray players - the folks who buy first pay more money.

Folks who are on here and who are genuinely going to buy a camaro in year one will :
- Have to be patient as production ramps up
- Deal with some early teething problems
- Be prepared to pay MSRP at best
- Expect no special finance deals

If not ready for the above then wait till 2010.
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Old 05-16-2009, 01:48 PM   #23
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0% is somewhat of a gimmick. You can always negotiate a lower cash price than the guy who takes 0%. They recently dropped the 0% on pick-up truckss up here and surprise, surprise - they are selling out the door for 5 grand less. In the end, GM makes the same amount of money and they should be offering this service right now.
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Old 05-16-2009, 02:41 PM   #24
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But as Vash said, GM is no longer in the business of financing cars. So, where would the money come from to finance the car? I don't understand what the process would be. Dealer pays GM invoice....GM gives money back to dealer, less downpayment?
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Old 05-16-2009, 05:32 PM   #25
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It will create more problems than it solves. Part of GM's profitability problems is the overbuilt quantity relative to demand, and so had to discount (fleet sales, incentives, etc) to move inventory. That eats into profitability (of course that all traces back to union greed, stubbornness, and inflexibility). Then consumers come to expect those kinds of incentives and won't buy until they are offered. I bought my Cobalt at 0% financing, and while it is great from a consumer incentive, the salesman mentioned how many people are interested but wait until GM offers 0% to buy (obviously). Until GM can create sales based on people wanting their cars rather than slashing prices to unprofitable levels, they are an unsustainable business entity, period. I do NOT want the state subsidizing unprofitable car sales from a nationalized GM.
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Old 05-16-2009, 05:33 PM   #26
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Who wouldn't want 0% financing??? Oh wait there are 7 fools in this forum that don't..lol..
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Old 05-16-2009, 05:35 PM   #27
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Of course all consumers want it, but would it be a good business move? Not at all. I'd like to see GM give away Camaros for free, but that doesn't mean they should.
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Old 05-16-2009, 08:39 PM   #28
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With the exception of the Camaro, If they really wanted to sell vehicles they would be offering 0% on all vehicles. The Camaro's gonna sell right now no matter what.
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Old 05-17-2009, 01:41 AM   #29
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If anyone replied to this post with a 'NO' -- I'd really wonder about where they're coming from.

Here's the problem with zero percent financing.

Take the example that TAG uses --

......the part you're missing is the additional interest on that monthy savings.


..............see-- GMAC -- or Ford Motor Credit - or any captive finance company -- does not offer zero percent financing as an act of kindness.

SOMEONE has to pay for that -- and it comes right from the Divisional Budget -- meaning that you're talking thousands of dollars in additional incentive money to do that.

We DO have low interest financing OR a rebate on most cars -- those that are not selling as fast as we'd like.........


.............but looking at our financials --(we're losing billions...) why would anyone with any business acumen offer zero percent financing on a car that has people threatening me and many others with bodily harm if we don't build (and ship!) their new Camaro two months ago?


So yes -- it would give a 'sales lift' -- but at an even bigger loss............
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Old 05-17-2009, 01:47 AM   #30
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We were able to get 3.99% from the local credit union on our 2010 I am very happy with that rate, considering the loan on my 92 Camaro back in the mid 90's was at 12% with me having great credit.
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Old 05-17-2009, 01:56 AM   #31
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zero % for well qualified buyers, all other buyers finance else where. Or allow the cash allowance, which is what I would hope that they would do on my car. I mean, if I really wanted to, I could borrow a small amount from my credit card and have the whole car payed of day 1. Reality, is the cash allowance is a benefit for both the consumer and the seller. Seller makes all the amount right up front, cunsumer gets the incentive of say 1k-1,500 for doing so. Win Win
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Old 05-17-2009, 01:58 AM   #32
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Originally Posted by fbodfather View Post
If anyone replied to this post with a 'NO' -- I'd really wonder about where they're coming from.

Here's the problem with zero percent financing.

Take the example that TAG uses --

......the part you're missing is the additional interest on that monthy savings.


..............see-- GMAC -- or Ford Motor Credit - or any captive finance company -- does not offer zero percent financing as an act of kindness.

SOMEONE has to pay for that -- and it comes right from the Divisional Budget -- meaning that you're talking thousands of dollars in additional incentive money to do that.

We DO have low interest financing OR a rebate on most cars -- those that are not selling as fast as we'd like.........


.............but looking at our financials --(we're losing billions...) why would anyone with any business acumen offer zero percent financing on a car that has people threatening me and many others with bodily harm if we don't build (and ship!) their new Camaro two months ago?


So yes -- it would give a 'sales lift' -- but at an even bigger loss............
So basically because you can't get the cars out in time to meet current high demand, it would be stupid to increase demand even more and then at a loss of even more money with 0% financing.

I would say you guys at GM need to be able to create more Camaro's and less of other less popular vehicles so 0% financing can be done and you could sell more vehicles and at the same time help out those of us who would benefit from paying less each month for the car..
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Old 05-17-2009, 02:32 AM   #33
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It'd be nice to see our Politicians have the balls to stand up to credit card companies, but apparently (as usual) they don't.
Politicians HAVE NO BALLS or ethics.
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Old 05-17-2009, 02:41 AM   #34
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People People People and GM too.... All GMAC needs to do is offer a better rate than a bank or credit union - say 2% financing.

Then as some folks pointed out, buyers would then maybe buy a few more "addons" or MORE buyers would simple buy MORE cars = MORE MARGIN OR REVENUES MEANS LESS TAXPAYER MONEY TO BAIL OUT BIG WIGS THAT RAN THEIR COMPANY INTO THE GROUND BUT STILL GET THEIR MILLIONS IN BONUSES >>>>>>> a win win for today's consumers and whatever is left of today's GM.

BIG COMPANIES GET SLOW, STUPID AND LOSE SITE OF THEIR CUSTOMERS AND WHAT THEY WANT. AND ALSO WHAT GOT THEM BIG IN THE FIRST PLACE....LISTENING AND CARING ABOUTWHO BUYS FROM THEM. LOOK AT ALL OUR BIG BUSINESSES- THE BIG WIGS GET FURTHER FROM THE CUSTOMER EVERY TIME THEY EXPAND....
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