GM plans 'clearance sale' to pare down 2004's

[kmacleod]

USA: General Motors plans 'clearance sale' to pare down remaining 2004 model year inventory
22 Sep 2004
Source: just-auto.com editorial team

General Motors is planning what it hopes will be a clearance sale next week on 2004 models, offering zero-percent financing for 72 months to help unload a backlog of inventory, the Associated Press (AP) reported.

Industry observers, however, reportedly say the blitz could hurt sales in the coming months and beyond.

GM spokeswoman Deborah Silverman told AP the company had no comment on such a promotion, but dealers told the news agency they were notified in recent days of the programme, which applies to brands such as Chevrolet, Pontiac, Buick and GMC. The dates are Sept. 28-30.

Full Article Here:

just-auto.com

Ken

[dlr]

Yes, we got a big banner to hang up that says 72 months at 0% on all 2004's (except Cadillac). Of course you have to give up the main rebate to get it and GMAC won't finance more than invoice on a 72 month contract. If anyone is upside down they won't be able to do it.

I don't think it will be all that effective. Unless your financing more than about $28,000 or more, your better off taking the rebate.

[tgagneguam]

I heard about this and wondered what GM's 2004 inventory position was. Does anyone know how many hundreds of thousands (or I hate to think millions) of 2004's are sitting on dealer lots? I have not heard any figures but wondered mostly because I've heard reports that dealers are predicted to have large quanitities of 2004's well into the summer of 2005! I cannot imagine that that is any good for present, near-future, or longerterm sales of GM's newer cars and trucks, particularly the crucial and exciting new 2005's. I also can imagine that GM's profits (and eventually their dividend!) is going to be negatively impacted by having to subsidize the sales of these vehicles.

[GM-10]

Maybe they could open a damaged goods rack and put the CSV's there. Much like department stores do with their damaged inventory.

[akumaknight]

Looks like I'm gonna try and get me an 04 Goat.

[FoMoCo Fan]

Maybe they could just give them away. Oh, wait - they already did that!!!!

[doh]

The industry is hurting and this won't help it at all! I was wondering what they would do with the 04's when 0% is allready on the 05's.

Screaming dealers or more incentive? What is worse? They opted for the precieved value of 72 month 0%. Whats wrong with it?

They don't really gain customers they just draw them into buying Now not in 3-6 months. Trade values drop again. The customer is even farther upside down than ever and out of the market for 4-5 years now.

A far better sell off of past model years would have been a 0% lease rate. Bringing these customers back after years.

Days supply is a sign of the system isn't working anymore, not a sign that we need more incentives.

GM Ford DCX needs to slowly get away from this incentive game.
They also need to be able to layoff plant workers and not pay them 95% of thier wages,
They need to realize that the market is in a slump and loading a dealer with product won't fix it.

[sheithappens]

72 months!

Not a very smart move.

The sad thing is people won't realize how stupid of an idea this is until trade in time. And god forbid you total it before she's paid for. Unless of course you've paid for gap insurance. Which I doubt many people who finance for 72 months purchase. Their obviously worried about payments and a higher insurance premium ain't on the menu.

It boils down to one thing. These cars and trucks are no longer affordable for most folks and need to come down in price a lot. Hello China and all your cheap labor. It won't be long before you pop the hood on a Chevy and notice that lovely "made in china" sticker just below the vortec symbol. Heck, why not sell em at Walmart and leverage their market penetration?

72 months isn't a good thing.

[akumaknight]

I can just see the guys in the automotive dept at wal-mart telling my a 2.4 Ecotec will drop right into my Intrepid (Not that I have an intrepid mind you)

[JBsZ06]

I believe the average person holds onto a car for 7 years? so zero percent financing for 72 months isn't bad..

I wouldn't bother but thats just me..especially if you need to give up a portion of the cash rebate on purchase price...etc..

Unless it was a car I'd keep 7 years...

JB

[scrapinby]

I am so ready for this sale to be over. I miss the good old days when we only had to deal with people pushing the "hot button". Now I have to explain for 20 minutes why I can't get someone a crew cab duramax.