GM Unveils New Discount Finance Plan for Most Cars
General Motors Corp. on Sunday unveiled a cut-rate financing program beginning today that includes a 6.9% annual interest rate on purchases of some cars and trucks.
The 6.9% rate applies to 30-month loans from GM’s financing arm, General Motors Acceptance Corp., to buyers of the Chevrolet Chevette, Pontiac Fiero, Oldsmobile Delta 88 and Buick LeSabre models, the company said. GM said the 6.9% financing rate is the lowest in the 67-year history of GMAC.
GMAC will offer a 7.9% rate on 36-month loans for all other GM cars, except the Oldsmobile Toronado, Buick Riviera and the Cadillac Eldorado and Seville. Longer-term financing for most GM cars will be available at 8.9% for 48 months and 9.9% for 60 months.
For light trucks, the 6.9% rate will apply to 36-month loans for the Chevrolet S-10 pickup and El Camino and for GMC S-15 pickup and Caballero models. The 7.9% rate will apply to the Chevrolet S-10 Blazer, GMC S-15 Jimmy and Chevrolet and GMC C-K full-size pickups, while a 9.9% rate will be available on most other models.
Slumping Sales
“GM dealers have good supplies of . . . cars and trucks. . . . The favorable impact of these new GM incentives on the consumer’s budget--coupled with lower oil prices and lower interest rates in general--should give a strong new spurt to the market in the upcoming dominant spring selling months,” said James G. Vorhes, vice president in charge of GM’s customer sales and service staff.
Domestic auto sales have been slumping recently, with GM’s results off 14.3% last month, compared to March, 1985. Twelve days ago, the company announced plans to lay off more than 4,700 workers.
GM’s discount financing program applies to vehicles delivered from inventory today through June 30 and to vehicles ordered before June 30. In instances in which the end-of-model-year cutoff date for car and truck orders occurs before June 30, special financing and leasing will only be available on orders placed before the cutoff date, the company said.
