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Originally Posted by silvergoat2k6
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.
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This is what happens when the economy completley tanks. Would you rather GM not offer any incentives so they can have cars rot on the lot?
GM and all the others need to move metal in today's economy and adjust output accordingly. If turns out to be an incentive war then it is what it is---everybody is hurting for sales and it isn't going to get any easier.