By on June 27, 2014

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While perusing Chevy’s website to see if there is any color of the 2014 Corvette that actually makes the car look halfway decent, I came across the financing offer pictured above. And, no, I did not enter any personal info that would lead GM’s captive Ally Financial (or whoever the hell GMAC is now) to deem me only eligible for such a high interest rate. Just what is going on here?

A quick look at other Chevrolet vehicles on the site show financing offers of 3.9% to 4.9% APR. These rates may be subvented, or bought down by the manufacturer to help move slow-selling iron, though with car loan rates being under 2.0% by independent banks in much of the US, one has to wonder how much Ally is being charged for their money. Even if they are paying a sky-high 4.0%, it is a mystery why they would advertise a 14.7% loan on the Stingray, rather than, say 6.0% or 7.0%. Ally and the dealers would make a fortune on this 72-month loan but I don’t think they will get any takers because unlike buying the Corvette itself, with dealer price gouging running rampant, consumers actually have many choices when it comes to financing.

I can only conclude that either this offer is in error (maybe even their marketing folks are slammed by the recall crisis) or Ally Financial is simply not interested in $50,000+ loans.

What say you?

 

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24 Comments on “Chevrolet Offers 14.7% APR Financing To “Well Qualified” Corvette Buyers...”


  • avatar
    don1967

    With a rate like that who needs to sell rustproofing?

    GM Canada is advertising 4.99% on the 2014 ‘Vette.

  • avatar
    Erikstrawn

    Gotta pay for those recalls somehow!

    It does sound like an error somewhere, but I wouldn’t put it past them to try and make a quick buck while they’re new and selling to narcissistic must-have types.

  • avatar
    Land Ark

    Same offer here – for 72 months. Wowzers.
    Maybe Ally knows something and they are preparing for interest rates to go through the roof. It’s like the 1980s all over again. Ok, maybe not that bad, but still 15% is jaw dropping. Surely they are going to raise the rates for savings accounts to correspond… right?
    I wonder what your rate is if you are not “Well-Qualified.”

  • avatar
    Kenmore

    A typo that launches a million rants? Or is everybody suddenly subprime?

  • avatar
    Zackman

    “While perusing Chevy’s website to see if there is any color of the 2014 Corvette that actually makes the car look halfway decent…”

    Fortunately, that’s your opinion. Everyone is certainly entitled to theirs. I, for one, think the new Corvette is beautiful, and looks good in almost any color. Of course, GM could have made the lines cleaner, but then it would look like an Audi. Now, you won’t get it confused with any other car, that’s for sure.

    I’ll never own one because it’s beyond my means, but I still like them. I’ll take one in red or yellow, FWIW…

    • 0 avatar
      kjb911

      The 15 model is getting rid of the lime rock green and replacing it with Daytona Orange which will be gorgeous! Also our average rate through ally for my dealership is between 2-5% usually

    • 0 avatar
      hybridkiller

      “While perusing Chevy’s website to see if there is any color of the 2014 Corvette that actually makes the car look halfway decent…”

      I agree with Zackman. Funny thing is, I normally don’t like blue on cars, but I saw a C7 in blue and it looked stunning.

      • 0 avatar
        NoGoYo

        I saw it in dark green with light brown interior and that looked amazing.

        Or maybe it was the red interior. Anyway, sad to hear the green is going and being replaced by orange.

        • 0 avatar
          hybridkiller

          It’s almost like there’s something about the C7 that thrives on colors that are just meh on most cars.
          “You don’t like this color? Good, because I’m wearing it anyway. Why? Because f*&% you, that’s why”.

    • 0 avatar
      stanczyk

      ‘..perusing Chevy’s website to see if there is any color of the 2014 Corvette that actually makes the car look halfway decent’
      – Author is right .. new Vette looks messy(bad taste- too many pointless lines and curves.. ) .. (previous ‘ferrari inspired’ is not better.. , you need to go back to C5 to get a proper design..)

      credit, credit , more credit .. debt ..
      bankster$ will take over anyway ..( and because of that:
      next Vette will be 4-banger hatchback .. with ‘chineese face’..))

  • avatar
    dude500

    That’s very odd. It’s not a typo because if you select 36-60 month financing, it is 13.1% APR (which is still much higher than the prime rate).

    It could imply that the Corvette is selling well, and therefore GM doesn’t need to subsidize it with a cheap loan. I.e: get the Corvette loan somewhere else, so we can use our subvention dollars and capital to move crappier metal like the Malibu. And if you want the convenience of getting the loan at the Chevy dealership, you’ll have to pay.

    Also FYI: Ally has no subvention relationship with GM anymore, or with Chrysler, or any other manufacturer. GM is now Wells Fargo for prime, and the former Americredit for subprime. Chrysler is now Santander Consumer.

  • avatar
    rpol35

    Whip out your AMEX, it’s a better deal.

  • avatar
    mars3941

    14.9% APR is out of line even if one had bad credit.

  • avatar
    SaulTigh

    I don’t know if it’s similar, but when I recently bought a new Ford, Ford Motor Credit would only quote 7.99% unless I filled out a hard inquiry credit app. When I finally did that, they came back at 3.99%. Fortunately, a credit union came back at 1.94% and we did the deal. I wouldn’t be driving a new truck today if 3.99% was the best they could have done.

    We’ve now had an entire generation of people grow up in the low interest rate environment. If you were 15 years old when 9-11 happened, you’re 28 now and probably in the market for a car if you have a halfway decent job. If interest rates even go back to “normal,” it’s going to be a shock to a lot of people. A 6-7% car loan with a top tier credit score and good income will seem outrageous. I can only imagine what that will do to car sales.

    • 0 avatar
      Occam

      I’m 32, and agree with this. 6-7% interest sounds to me like something you pay on a Chevrolet or Mitsubishi when your credit is shot and your credit cards are all maxed out.

      • 0 avatar
        nrd515

        A 32 year old friend of mine, with basically no credit (And a millionaire lawyer father who won’t help him at all) is paying a certain well known used car seller 19.7% on a…Taurus. I don’t know who was more pissed at when he told me that, the place selling it, or his dad for not helping him out. He had to have a car, he’s got a baby and needs to drive to work, so he did what he had to.

        • 0 avatar
          hybridkiller

          “A 32 year old friend of mine, with basically no credit…”

          With all due respect to you and your friend, that’s almost certainly not his father’s fault. Which leaves 2 possibilities – either he’s a victim of circumstances beyond his control, or (more likely) he’s made 14 years worth of bad choices as an adult. If it’s the latter then maybe his father just wants him to learn some financial responsibility.

    • 0 avatar
      Hillman

      As someone who fits the demographic you describe, I can’t imagine what will happen when we go back to historical rates. Rates going back to “normal” will kill the economy at this point. Also, I still can’t believe the 15 % bond scene in diehard.

      • 0 avatar
        dtremit

        People will buy fewer cars. It’s that simple.

        Even with current rates, length of car ownership is going up steadily.

        • 0 avatar
          S2k Chris

          OTOH, if car loans are 6-7%, I’d expect somewhere in the neighborhood of 5% on my savings account, not the .01% or whatever it is I currently get.

          • 0 avatar
            TheyBeRollin

            I’d expect that, too, but the banks don’t seem to be passing anything on to us. All you can do is chase returns on the market at this point. There’s so much money with nothing to do sitting out there that it’s not worth borrowing yours.

  • avatar
    Chris FOM

    Seems like a computer glitch. Something in the basic math formula used to derive interest rates specifically for the Corvette got screwed up and it’s spitting out bad numbers.

  • avatar
    David Walton

    They’ve advertised a 14.7% APR rate on the C7 for months now, perhaps since new.

    • 0 avatar
      dude500

      I think that GM may not want to be in the business of making loans if it doesn’t have to, which in my mind is a good thing.

      I’m sure that if they need to juice the Corvette sales, we’ll be seeing that APR plummet.


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