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-   -   Who wants to see 0% financing available from GM on all GM vehicles? (https://www.camaro5.com/forums/showthread.php?t=23063)

TAG UR IT 05-16-2009 11:30 AM

Who wants to see 0% financing available from GM on all GM vehicles?
 
GM is quickly getting to "that day" where bankruptcy could be declared. Sales are lower than ever and it seems that every time I hear another GM story, the sales keep declining and it's more bad news.


I want to know why someone at GM has not implemented a ZERO% financing on all GM vehicles deal. You want to sell more cars, GM? Sell the car/truck at ZERO% financing and your sales will increase pretty quickly!

Imagine it this way...

If I financed $20,000 at a 3.99% rate for a 60 month term (such as we've found from PenFed), my monthly payment would be $368.24

If I financed $20,000 at ZERO%, my monthly payment for a 60 month term would be $333.33 PER MONTH!!!


That's a savings of $34.91 per month and $2,094.60 over the life of the 5 year loan. If someone out there is counting pennies when buying a new car (and I would say the majority of folks care about lowering their monthly payment as much as possible), then going the ZERO% route would be a HUGE deciding factor in purchasing a new vehicle.

Another way to look at it is this.

Let's say I was planning on spending $15,000 on a new Cobalt. I really want that "sun and sound" package they offer for $1,500 but I just don't have that cash to get that option. Therefore, I have to settle for less. It's still okay, but I'd LOVE to get what I REALLY want.

---With the ZERO% financing, I can not only get the car for $15,000, but I could also add in the sun and sound package because I'd be saving just about that much in the term of the loan. Hey...GM could have made $15k, but ended up making $16,500 because they offered the ZERO% financing.

--------

How about the family that could only afford $13,500 and can't buy the car due to the monthly payment being too high? Now they can buy that car they wanted. GM makes another sale (and we all know there are thousands of people out there in this same position who could get the car, but are having problems with getting a good financing rate).


I'm just thinking out loud to myself to lately, "Why can't GM just offer ZERO% on all their vehicles? They want to sell more, don't they? This is the perfect opportunity! Not only would more vehicles be sold, but people might order more options since they know they are now saving a grand or two."

What do you think? Should GM offer something like this to help the company sell more and become more profitable? Or, are there complications I'm not seeing where this could actually be detrimental to General Motors?

OF COURSE....FOR ALL THOSE THAT LOVE POLLS, THIS ONE"S FOR YOU!!!:laugh:

SS 376 05-16-2009 11:32 AM

It's a great idea but credit seems to be too tight nowadays, particularly from GMAC which lost a lot of money on bad loans. Even people with sterling credit are getting hosed with high rates. And we haven't even seen the worst of the next credit crisis: credit cards.

HTWLSS 05-16-2009 11:34 AM

Why is it a smart business move to loan money for free? Isn't the whole point of it to earn some money back by charging interest?

Dakota Kid 05-16-2009 11:34 AM

I have been saying this for months....GM and Chrysler should give all of us 0% financing after we the taxpayers have bailed them out.

Does not seem like too much to ask from where I sit.

mlee 05-16-2009 11:35 AM

You're Hired...:thumbsup:

fad1 05-16-2009 11:35 AM

Yeah I am in favor of 0% financing.

trm0002 05-16-2009 11:36 AM

Naw, I like 6.99 much better; it's evenly divisible by 3.

LabRat 05-16-2009 11:36 AM

Quote:

Originally Posted by Can-Am (Post 492638)
It's a great idea but credit seems to be too tight nowadays. Even people with sterling credit are getting hosed with high rates. And we haven't even seen the worst of the next credit crisis: credit cards.

There is a big BUT here!

BUT if as suggested, GM held the paper, GM would be making those credit decisions, and they would be as Tight or Loose as GM chose.

I have often wonderd why they have not gone this route, even if they needed to demand a high percentage down payment.

LabRat

orange_5thgen 05-16-2009 11:41 AM

Sounds very good to me. Plus if GM offered 0% financing then all folks would be financing through GMAC correct? Instead of going to their bank or credit union etc.... Right now I'm probably going to finance through my bank becuase it will most likely be the lowest interest rate I can get and not through GMAC.

I think 0% would definitely help sell more cars. Right now people are scared to do anything. I mean hell I'm afraid to buy this Camaro right now becuase I could turn around and be laid off.

I just hope I get my car while the "total confidence" deal is still on. That way if I lose my job I do not lose my car.

2SSRS@Gen5diy 05-16-2009 11:43 AM

Quote:

Originally Posted by Can-Am (Post 492638)
It's a great idea but credit seems to be too tight nowadays, particularly from GMAC which lost a lot of money on bad loans. Even people with sterling credit are getting hosed with high rates. And we haven't even seen the worst of the next credit crisis: credit cards.

That is right, But how about the fact that GM is going to file for bankruptcy You know that GM is getting money from the fed.

1969to2010 05-16-2009 11:43 AM

0% would help me out a lot

ssdavidw 05-16-2009 11:44 AM

When I bought my 2005 Avalanche, I had two trucks on my short list. One dealership tried to give me 5.9% through GMAC and the other offered me 0% through GMAC.

I borrowed 32k and the 0% made the sale a no-brainer for me and really helped out on the payments.

With the market the way it is, I really don't care about the APR rate I'm offered on the Camaro. It doesn't look like I'll be borrowing more than 15k and, if all goes well, I should have it paid off way early.

I believe GM should be offering 0% on all of the trucks, vans and SUV's, but on the cars some cash back might be the better way to go.

For the trucks and SUV's you're going to have people that either want one, or someone that needs one. I would assume most people buying one now actually needs one either for people moving, hauling materials or towing... or some combination of those. Any APR on the price of these things hurts.

If a family is tight purchasing a 20k vehicle, for example, their credit may not qualify them for 0%. $1000 or $1500 cash right off the top might be more helpful for them.

If someone is purchasing a Corvette or the $40k+ Cadillacs, then they should be well enough off that they don't need any special deals.

It's a complicated issue, but hopefully the people that are smarter than me that are in a position to make the decisions will be able to do the right thing.

Dakota Kid 05-16-2009 11:44 AM

It is no wonder these companies are fightging for their very existance. Take Chrysler for example...a couple of months ago you got EPP, 0% financing, and 1K off a new Dodge Ram....so in essence you got a 44K truck for about 35 K...

Now....nada. They are not building squat, and the inventory on thier lots has NO incentives that I am aware of.

How the hell do they think they are gonna sell any cars?

Wow. Simply wow.

TAG UR IT 05-16-2009 11:48 AM

Quote:

Originally Posted by HTWLSS (Post 492641)
Why is it a smart business move to loan money for free? Isn't the whole point of it to earn some money back by charging interest?

Of course. But, I'll try to explain my point.

Because there are many people who base their car buying decision on a monthly payment (like my mother). There are lots of folks who say, "I can only afford "X" amount per month. So, they either have to save up to get to that amount, buy a different car, or not buy at all.

GM's sales have not been too impressive lately. They want to sell more. It, IMO, is a smart business move IF they want to sell cars and become more profitable, to help those people who want a new vehicle but are concerned about that extra $35 a month.


I'll give you an example based off of my situation.

I'm planning on financing that $20,000. You see my predicted monthly payment of $365. If GM offered ZERO%, then I would be saving myself $35 a month. Over the life of the loan, I would save about 2 grand. My credit score is not shabby at all and I will have no problems with getting a loan at all. If I was saving 2k, I could quickly pour that savings right back into other options. Therefore, GM isn't losing anything. They are still getting their money.

...but, this is mainly for those that are teeter tottering on the purchase of a new GM vehicle. Some folks can't fit $365 into their budget, but can fit $330. It might seem like a small difference, but to many folks, this is the deal maker/breaker.

We see 0% financing on lots of "select vehicles" all the time. You can get "this or that" for zero %. But, you can't get anything else. All I'm doing is saying offer up all the cars for zero%.

My thought process might be off (like I said in the first post). But, I think it would benefit GM in the long run by helping to make the car buying process more affordable.


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