GM Offering 0% Financing to Move the Metal. Again.

by Frank Williams

June 23rd, 2008 7:44 PM

gm offering 0 financing to move the metal again

GM has stated publicly and repeatedly that they're fully committed to cutting back on incentives. Unfortunately, as the saying goes, what they're doing shouts so loud we can't hear what they're saying. Automotive News [sub] caught wind of a conference call between GM dealers and Marketing Maven Mark LaNeve. GM's [non-PHEV] volte face starts tomorrow, when the ailing automaker will offer 0 percent financing for 72 months on "most Chevrolet and Buick-Pontiac-GMC products." On a $30k rig, that’s about $8100 in savings versus a standard 9 percent rate. If you're buying instead of leasing, The General will add in another $500 in bonus cash (they have to clear the lots before the 2009s start rolling in with their 3.5 percent price increase). And yet, with so many lightly used trucks and SUVs on the market– many with a great GM warranty– even this offer may not move the needle. GM's facing disaster; some analysts reckon their sales could tumble by 28 percent in June. Hence the fact that the special financing will run [s]until they sell something[/s] June 30. Or longer. Meanwhile, LaNeve also revealed that his employer's hired Citibank to help it "complete their study" on HUMMER and they're open to "all options" for the brand. Except incentives? Go figure.

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4 of 22 comments

Rtz on Jun 23, 2008

I know where there is a gravel parking lot full of tag less Malibu's sitting behind a barb wire fence.

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Raymond Hieber on Jun 23, 2008
Where was it said that “anyone with a pulse” gets financed? The fact is that each applicant is graded by a 6 rung tier system. Only the top 4 are eligible for incentive rates I think that's how it has been since the start, in the disclaimer. Robert has written of "anyone with a pulse". I read articles in magazines and newspapers calling into question their criteria. I know two self-employed with marginal credit who couldn't get less than special financing on a used truck who got 0% on new Silverados, with no income verification. One of them I know had under a 600 beacon score a couple weeks after buying the truck because I helped him get everything organized for entering consumer credit counseling. Since they don't fully own GMAC now, it might not be the case this time around, but who knows for sure?

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Nudave on Jun 24, 2008

If you think this is a great deal, just wait for the going-out-of-business final liquidation sale.

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Racebeer on Jun 24, 2008

GM and Ford aren't the only ones playing this game. I saw an ad on the tube last night for a '08 Corolla -- $179/month lease or 0% for 60 months financing. That has got to be a stab in the eye of the domestics since the Corolla isn't exactly a "slow seller". Add the new Tundra/Silverado SS to the mix, and the boys from the land of the rising sun are really trying to deliver a knockout punch. I guess Camry's at 0% for 72 months are next.

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