Incentive Alert: Chevrolet

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Thread: Incentive Alert: Chevrolet

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    News Contributor Premium Member Perian's Avatar
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    Incentive Alert: Chevrolet

    Cars.com
    October 5, 2020

    Starting October 1, Chevy is offering 0.9% APR for 72 months on just about every single model. Whether it's a $14,000 Spark or a $70,000 Silverado 3500HD, GM Financial is offering the ability to get the same great rate. Given the fact that there were practically no APR deals previously, this is a pretty big deal.

    That said, we found an important catch. According to the fine print, dealers are being given the option to mark-up the rate by up to 2%. Alternatively, they also have the ability to offer the lower rate in exchange for a 2% bonus from GM. As a result, your results may vary depending on how a dealer markets their cars.








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    7.0 Liter LS7 V8 unkillsam's Avatar
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    Re: Incentive Alert: Chevrolet

    Sounds like a rip off considering GM Financial can borrow for practically free. The 10 year Treasuries are at .6% and they were offering 0% for 84 months not too long ago.
    "The car's brilliant and ... a great surprise, pleasant surprise for all Corvette lovers everywhere ... a huge shock to our competitors ... because I don't think anybody was expecting something that good. What pleases me the most about it was that ... I can say this is the first car that's come out, that was done since I left.

    -- Bob Lutz, former vice chairman and head of global product development at GM

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    2.4 Liter SIDI ECOTEC ksss's Avatar
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    Re: Incentive Alert: Chevrolet

    That sucks for me considering I just bought my 3500 last month. I got a good rate but not that low.
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    Re: Incentive Alert: Chevrolet

    Is it me or is it an "as usual", the fine print is there to bite you in the butt because it's not as good as it seems sometimes.

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    Re: Incentive Alert: Chevrolet

    The key to me is transaction price. If they don't come off MSRP much a finance "deal" in our current interest rate environment isn't that huge a thing.

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    Re: Incentive Alert: Chevrolet

    What benefit does the dealer get from charging the extra 2% to the customer? Sounds like a win-win for the consumer and the dealer to take the lower rate in exchange for a 2% bonus from GM. What I'm reading sounds like the dealer gets the same amount of $$ in the end.

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    2.4 Liter SIDI ECOTEC ksss's Avatar
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    Re: Incentive Alert: Chevrolet

    The hardest part around here would be to find an HD to buy that isn't a white work truck.
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    Re: Incentive Alert: Chevrolet

    Quote Originally Posted by BlackGTP View Post
    What benefit does the dealer get from charging the extra 2% to the customer? Sounds like a win-win for the consumer and the dealer to take the lower rate in exchange for a 2% bonus from GM. What I'm reading sounds like the dealer gets the same amount of $$ in the end.
    The way that is worded, it doesn't make sense.

    It is common for a lender, to charge different rates for a loan and get a "kick-back".

    Rates are low, but 0.9% for 72 months is a subsidized rate, that is lower than the natural rate for a 6 year car loan, so if you charge 1.9% the dealer would get $500 or if they charge 2.9% they get $1,000 to make a deal go regarding discount/OTD price.

    It's basically like buying points for a mortgage in reverse, where you pay extra money at closing to get a lower rate, here the customer gets lower price on the car for a higher rate.
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    Re: Incentive Alert: Chevrolet

    That is the way heavy equipment OEMs have always run there 0 interest or reduced interest deals. If you take the 0 interest your cost for the machine is higher. Never made sense. Vehicle OEMs have in the past tended to run 0 interest at the same purchase price as without. Maybe that is starting to change....which would suck.
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    Re: Incentive Alert: Chevrolet

    Quote Originally Posted by ksss View Post
    That is the way heavy equipment OEMs have always run there 0 interest or reduced interest deals. If you take the 0 interest your cost for the machine is higher. Never made sense. Vehicle OEMs have in the past tended to run 0 interest at the same purchase price as without. Maybe that is starting to change....which would suck.
    "Vehicle OEMs have in the past tended to run 0 interest at the same purchase price as without."

    This is not true; if you take the cut-rate financing, you lose the "financing rebate" (not all rebates, just the ones tied to financing).

    I have always taken the cash and then paid it off in 3-6 months, only paying back a small portion of the rebate in interest.
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