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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 05-17-2009, 09:40 AM   #43
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Tag, I'm with you. I would put additional savings into the Camaro. Unfortunately I think 0% is unrealistic although I would love to see it. Just remember everyone that "A penny saved is not enough!"
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Old 05-17-2009, 10:54 AM   #44
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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.
I feel 0% for tier 1 credit would be good. And if you dont have tier 1 credit the interest rate should reflect where you are at on the tier levels. Just my opinion though
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Old 05-17-2009, 10:55 AM   #45
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The UAW should have thought about that 20 years ago while they were slowly suffocating GM and had time to renegotiate to allow the company to reorganize properly. Now...they'll have nothing. You shouldn't feel so sorry for the workers if GM files for Chapter 11 because they had direct control over who was appointed to the UAW, but they too, became greedy. Now on the verge of losing everything, they want to negotiate...after the fact...GM on the fringe. Compassion is a limited commodity most of us use sparingly with GM and the UAW, especially when pity is the fuel it runs on. You know what is ironic too? The unions supported Barack Obama, and what Obama is doing is trying to stop the bleeding for the nation after you and I have bled too much to save GM from itself. We know how those workers are voting come next term.

I'm not in favor of anybody losing their jobs or being "caught in the cross-fire." The workers had the power to do what was right, but the UAW kept milking the golden cow (GM). What do you expect taxpayers to honestly think, fbod? Seriously.

Who said anything about the UAW?

I'm talking of non-union workers based on the note that I responded to which eluded to "Big Wigs" -- now perhaps I misunderstood that person, but I don't think I did......

Did the UAW do some bad things? You betcha!

Have they made meaningful concessions? You betcha!

The problem with all of this is like everything else in this world -- NOT that simple. If it were as simple as many people say it is, there would not be a problem in the first place. We tend to forget that in nearly every instance, there are smart people working on issues......



There's a couple of facts that need to be remembered here:

The U.S. Market has been around 16.5 to 17 million units a year for the past 5 years.....that's the retail registrations of cars and trucks from all manufacturers.......

Looking at sales from mid summer last year until now, the annualized rate has fallen off a cliff -- figuratively -- to around 9.5 million units.

That's one helluva cliff!!

There is NO WAY that anyone's gonna survive on those numbers for long. Go look at what Toyota just posted for losses........

Moreover, until very recently - if you produced any volume of cars and trucks in this world, you looked to the United States as a market to sell your goods......one, because it was the largest market (China is surpassing us...) and two, we have no trade barriers to speak of.
If the pie doesn't get any bigger -- and more players come into the market (which they have in huge numbers - ) the slices get smaller for all of those who were in it to begin with....

Good book to read: "Why GM Matters" by Richard Holstein -- and while I don't agree with all of his conclusions, he has a passage in there attributable to Richard Wagoner and WHY he felt we MUST go global - go read it - it's a VERY valid point that I'd never thought of!
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Old 05-17-2009, 11:02 AM   #46
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lol at telling a company in trouble to not make money
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Old 05-17-2009, 11:03 AM   #47
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i dont think 0% would be good, maybe 0.9-2% financing deal. they need a lil extra money. they dont make much off cars themselves, they make more off financing. sure 0% would get more sales. but a 0.9% will offer good sales plus a lil extra cash from the interest.

GM needs better commercials. better advertisement. they need to emphasize that quality is equal to if not better then honda and toyota, as well as mpg's still have yet to see a commercial on the new camaro. i see tons of malibu commercials, silverado's but no camaro. hell gm is discontinuing the cobalt and yet they advertise the shit out of the car cuz it gets 38mpg's.

imo gm should focus a lil more dollars on marketing. shit can pontiac, done, shit can saturn, bring the astra to chevy, shit can GMC and offer professional/luxury truck line to chevy. no more rebadging the same vehicle for 4 different brands. the next (G8) should be the Impala. hell the current G8 should have been the Impala.
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Old 05-17-2009, 11:05 AM   #48
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Quote:
Originally Posted by DkknightX View Post
The UAW should have thought about that 20 years ago while they were slowly suffocating GM and had time to renegotiate to allow the company to reorganize properly. Now...they'll have nothing. You shouldn't feel so sorry for the workers if GM files for Chapter 11 because they had direct control over who was appointed to the UAW, but they too, became greedy. Now on the verge of losing everything, they want to negotiate...after the fact...GM on the fringe. Compassion is a limited commodity most of us use sparingly with GM and the UAW, especially when pity is the fuel it runs on. You know what is ironic too? The unions supported Barack Obama, and what Obama is doing is trying to stop the bleeding for the nation after you and I have bled too much to save GM from itself. We know how those workers are voting come next term.

I'm not in favor of anybody losing their jobs or being "caught in the cross-fire." The workers had the power to do what was right, but the UAW kept milking the golden cow (GM). What do you expect taxpayers to honestly think, fbod? Seriously.
you can blame the union leaders but the workers were just looking to improve their lives...i don't blame them

although i've always been against unions since well all it does is spread mediocrity and you stop paying people based on their individual skills and you take away your individual negotiating power and you destroy incentive...

but don't be so harsh on the workers

the yeild curve is pretty low and almost near zero though

the banks are making a lot of money on 30 yr mortgages because they are paying near 0 for the money and lending at 5%
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Old 05-17-2009, 11:18 AM   #49
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Instead of 0% financing which I would love to have, how about the government subsidising my purchase?

Instead of the gov't giving money to the car companies, give it to the consumers with stipulations that they buy a new car from an American car manufacturer. Cars would immediately become more affordable. Loans would still be needed to complete the purchase and 0 or low % financing would make many more sales possible.

And why not on the Camaro, just because they have 18,000 orders right now?
What happens when productuon catches up with the orders which it will soon enough?
18,000-20,000 cars sold from one line is small potatoes. GM will need to sell many times more Camaro's to turn this car into a real money maker.
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Old 05-17-2009, 11:43 AM   #50
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^Well, isn't that what they are doing w/ taxes?...basically trying to help stimulate the economy as it is now?

I agree with what you said^. It would be pretty cool to have the gov't subsidize the purchase. I mean...I'm not too "in the hole" in buying this car. I mean, it's going to happen. But....it would be nice to offset the cost.

Scott, some of my initial thought was obviously flawed (I sure ain't a financial guru!). But, everything else set aside, I'm just trying to toss out some ideas that could help GM get some ground under them. I mean...if you can nab all those people who were "on the verge" of buying, but ...... just ...... couldn't see it happening due to some sort of financing or minimal cost problem...maybe it would help them?

Heck. Since GM would not be getting any return or make any money on the loan, why not just make it more competitive and beat out the other credit agencies (for qualified buyers, of course).

Right now, I can get 3.7% from Randolf Brooks Fed Cred Union. I am hoping that my regular bank will match that financing. They probably will. USAA said they would NOT do price matching. But, when it comes down to it, they CAN make the loan AND make money off of it. OR.....GMAC COULD lower that financing rate down to 3.5 or even lower to 3% and STILL make money off the loan.

Why not?

Sure, GM is hurting. Yes, they would have to loan out the money. BUT....they would still be making more money in the long run. I understand short term would be difficult for selling many, many vehicles and having to finance them ALL at ZERO....but, in the long run, sales would go WAY up resulting in more money for GM.

Ok.

If GM can't do ZERO.....do SOMETHING. Not just for the Camaros...they, of course, will mostly sell themselves.....do it for ALL cars! GM needs the sales!
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Old 05-17-2009, 11:50 AM   #51
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^...Yes do something to stimulate car sales, people in my family could use 2 new cars right now, but it's not gonna happen they things are right now.
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Old 05-17-2009, 12:18 PM   #52
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Isn't 0% financing begging the question?
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Old 05-17-2009, 12:22 PM   #53
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I think 0% would be a good idea, but at the same time, this might sound bad, but the banks do need money right now. But I think offering 2% APR would stimulate sales and help the banks out(dont get me wrong they dont deserve but im looking at big picture) Also with 0% financing they will probably get their money in other ways.
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Old 05-17-2009, 03:27 PM   #54
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GM has been offering 0% through GMAC consistently for at least three years on specific models. This practice has not helped their bottom line. It's only delayed the inevitable. There is a reason they offer rate or rebate, but not both. GM subsidizes one or the other. GM is not profitable because they stopped making a quality product (ironically, until just recently). All the newest models compare favorably with the competition, including imports: Malibu, Traverse, ZR1, and Camaro.

GM has to get smaller before they can get better (and bigger). The Cruz will be key to the relative success of GM. The Volt should help, as should the Spark and Orlando (1.6l turbodiesel).

If you plan on paying the car off early, take the rebate. If you plan on going the full term of the loan, take the 0%. Google "time value of money".


0% financing is not free. There Is No Such Thing As Free Lunch. 0% financing costs GM real money to subsidize. Real money they don't have. Furthermore, it conditions consumers and teaches them to not buy until 0% financing is offered. GM must shrink to match its new natural market share (which should stabilize and perhaps even expand due to their new high quality products) instead of artificially maintaining a higher volume by unprofitably subsidizing retail sales and making tons of fleet sales. That simply is not sustainable.
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Old 05-17-2009, 03:37 PM   #55
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true GM would get hurt in the long run. Thats why I think low interest rate would feasbile.
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Old 05-17-2009, 11:38 PM   #56
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Right now, I can get 3.7% from Randolf Brooks Fed Cred Union. I am hoping that my regular bank will match that financing. They probably will. USAA said they would NOT do price matching. But, when it comes down to it, they CAN make the loan AND make money off of it. OR.....GMAC COULD lower that financing rate down to 3.5 or even lower to 3% and STILL make money off the loan.
ou do realize that Gm and almost all lenders aren't lending their own money right? It;s not like if you go to GMAC for a loan they give you the cash out of their perosnal accounts. They lend you money they are borrowing from someone else. This is why lending companies tend to do better that have a very strong cash worth. Toyota Financial is a great example, one of the strongest lending portfolios out there.

You give rebates or APR to distressed vehicles that need to be moved, such as slow sellers or previous year models.

The simple fact of the matter is that GM can't afford to lend at stupid low APR's, they don't have the cash reserve for it. Everyone knows it would be in their best interest but that doesn't mean it can be afforded at this time. Let's say you make an average of 2k per retailed unit as a manufactruer (assuming a lot more than that) and you offer low APR, what interest YOU are paying for the money you borrowed to lend to the end consumer is now eatting into your profits.

Someone said it earlier. Low APR and big rebates work on a short timeline, but in the end just devalue your own product. Gm needs to focus on building up their quality and get a decent reputation back before anyone flocks back to their dealerships again.

the business model of discount selling doesn't work in the automotive industry anymore (not long term anyways). It is quickly being replaced by value selling. Some manufacturers need to get on pace with that.
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