Wave a Solemn Goodbye to Cheap 84-month Loans, Shoppers

Steph Willems
by Steph Willems
wave a solemn goodbye to cheap 84 month loans shoppers

They’re still out there, just not in the same concentration as before. Two weeks after the U.S. auto industry restarted production in force, long-term, no-interest loans are becoming as hard to find as Lysol wipes.

At General Motors, which wooed many a truck buyer with zero-percent/84-month financing during the coronavirus lockdown, the good times seem to be over for buyers. However, some lucky individuals might be saved by timing.

As reported by CarsDirect, dealer incentive bulletins show the 0%/84 month bonanza is over at Chevrolet, GMC, and Buick. Going into effect Tuesday, the new June offers show only a zero-percent/72-month offer for those looking to get into a new Silverado, say, with the lowest possible monthly payments.

Full-size pickup sales never fell more than 25 percent below pre-virus estimates during the depths of the lockdown, leading to dwindling pickup inventory as plants remained shuttered. GM, Ford, and Fiat Chrysler restarted production May 18th, with GM ramping up truck output this week. Dealers are hungry for new stock. Buyers, on the other hand, will be forced to pay more.

That said, the 4-month payment deferral GM touted during the lockdown is still a thing — just not for buyers seeking zero-percent loans. Bummer. However, for those who started the buying process before June 2nd, GM will honor its previous offer.

Lease offers appear unaffected by the June change-up, so there’s the possibility of scoring a good deal there.

Elsewhere in the industry, Hyundai has scrapped its zero-percent/84-month offers, while Ford has deep-sixed its 120-day payment deferral.

Nature is healing.

[Image: © 2020 Chris Tonn/TTAC]

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  • Tele Vision Tele Vision on Jun 03, 2020

    I just bought a 2000 GMC Sierra last weekend for our oldest boy. It has the 4.8L and a 4L60E sending torque to a factory LSD rear with 4:10 gears in it. CDN$1500.00 It runs as sweet as a nut and can be fixed with a socket set and a hammer. My point is: Old Is Still Good, And It's Easier To Fix. I've been buying used cars and maintaining them for 25 years. It's fun; cheap; instructive; and, if you're into it as a 'thing', good for the environment. Pay cash for the car and the tools and you're ahead of the game.

    • See 2 previous
    • Jalop1991 Jalop1991 on Jun 04, 2020

      @ktm I'm too poor to buy cheap. That being said, you don't have to be rich to own a cheap used Corolla. You DO have to leave your pride at the door, maybe, and not care about what anyone else thinks and not care that you didn't (foolishly) pull the trigger on that $50K Genesis just so you could have something to talk about on anonymous web forums.

  • Carrera Carrera on Jun 03, 2020

    My personal rule with financing a vehicle is 60 months maximum. If the payment isn't comfortable for a 60 months loans, that means I can't afford the vehicle. Normally, I never put down more than 10-15%. The issue with these 72-84 term loans, in my opinion, is that more than likely, but not always, they're offered in vehicles that depreciate faster than others. When I buy a vehicle I like to buy with the intention to keep it 7-10 years. Well, that's the intention but doesn't always work that way. I always like to keep in mind the "what if" scenario. What if I am not into pick up trucks anymore after 3 years of payments on my 84 month loan? How much upside down am I going to be? Probably a lot unless it is a Tacoma or a Tundra and even then. How about if I get over my midlife crisis and after 2 years I realize that I hate rolling out of my Corvette? How much upside down am I going to be on that 84 month loan? It hasn't happened to me yet since the above scenarios are just that.."what ifs" but I've worked with plenty of guys and gals who did exactly what I just used as an example. Sometimes, the trade-in was "just because", but often times it was out of necessity such as life changing events ( health issues, twins on the way, marriage, divorce). Life can change in an instant and the last thing I want to worry about is my $7,000 upside down loan being rolled over into my next car. Since I can't afford to buy a new car cash, for now, I find the 60 month loan to be the sweet(er) spot.

    • See 4 previous
    • Scoutdude Scoutdude on Jun 06, 2020

      A full size pickup, in a popular configuration has some of the lowest depreciation out there. Yeah you'll be screwed if you bought a 2wd or a regular cab in my area, but 1/2 ton 4x4 crew cabs are like gold around here. Yeah you'll be upside down at the start, but you are with any 10-15% down loan. However the 0% means all of the payment goes to principal. So you still make ground on the depreciation front and will be in the green sometime in year two, three at the latest. So two options that are better than locking yourself into the higher payment of a 60 month loan. Take the 0% interest and pay extra every month so that it will be paid off in 60 months. That way if things get a little lean one month you can stop paying that extra. Or take that extra money, put it in savings and don't touch it. You will be making more than 0% and you'll build up some cash. That cash could be used if things get tight or to make up the difference if you do find yourself upside down and need to make a change. Seriously, the 84 month 0% loan can be a good financial decision, if you don't use it to take home a more expensive vehicle than you would have otherwise. Of course I expect the majority of people do it to be able to take home a more expensive vehicle.

  • Jim Bonham Thanks.
  • Luke42 I just bought a 3-row Tesla Model Y.If Toyota made a similar vehicle, I would have bought that instead. I'm former Prius owner, and would have bought a Prius-like EV if it were available.Toyota hasn't tried to compete with the Model Y. GM made the Bolt EUV, and Ford made the Mach-E. Tesla beat them all fair and square, but Toyota didn't even try.[Shrug]
  • RHD Toyota is trying to hedge their bets, and have something for everyone. They also may be farther behind in developing electric vehicles than they care to admit. Japanese corporations sometimes come up with cutting-edge products, such as the Sony Walkman. Large corporations (and not just Japanese corporations) tend to be like GM, though - too many voices just don't get heard, to the long-term detriment of the entity.
  • Randy in rocklin The Japanese can be so smart and yet so dumb. I'm America-Japanese and they really can be dumb sometimes like their masking paranoia.
  • Bunkie The Flying Flea has a fascinating story and served, inadvertently, to broaden the understanding of aircraft design. The crash described in the article is only part of the tale.