Quote:
Originally Posted by Bvonscott
We've had this sale before. No big deal. What's interesting is we've had 0% for 60 months for 3 weeks prior to this sale. So apparently 72 months is the magic number to get people interested. Our supply of Aura's is almost gone. I think GM's numbers for June wont be as bad as expected.
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Still a money-losing proposition though...at 6% interest for a $25K/72 month loan, GMAC is losing over $4800 by giving someone 0%/72 months. Now multiply this by the tens of thousands of loans...it's not chump change.
This is what happens when you live by number of sales/market share vice profits. GM is sacrificing long-term profits just to not look so bad when the June '08 sales numbers are posted later today.