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GM 0.0% financing this month?

 
Old 03-14-2019, 11:09 PM
  #21  
Marc3
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Originally Posted by HorsePower Junkie View Post
GM financial offers the 0 per cent financing (not the dealer) on the price after you negotiate your deal with the dealer.

The 0 per cent is not an offer only if you pay sticker price with no discount.

The selling price you negotiate is separate from the financing. You get the 0 percent after you make the deal with the dealer...


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Yes- that is sort of true. The dealer has some margin which is what you "negotiate" when you work your price out unless you want to pay MSRP - I highly doubt anybody does except maybe on 100% allocated cars like the ZR-1.

Right now, there are additional cash incentives offered like about $5.5K. Those don't apply if you do the 0% 72mth deal on '18s at the moment.

GM Financial is a whole owned subsidiary of GM. On the back end, GM is funneling some of that $5.5K "cash incentive" funding to GMF to pay for the interest rate.

GMF has to make money on their own and there is no money at 0% -somebody is covering their cost of money and it's GM. Of course, it's transparent to the customer.

If you can find a dealer that will give over 20%+ off the price of an '18 + 0% 72 months, I'd sure like to know. Each one of those deals where the car is discounted >10% clearly states that there are additional discounts not available if you do the 0%.

In Z06 Cracker's situation, his Nov purchase was 0% but only 36 months. I don't know what the incentives were back then, but I would hedge my bets that it wasn't 20% off MSRP + 0%. If it was, I clearly missed the "better deal"... :

To your point though - the dealer doesn't fund the free interest and you don't negotiate the interest rate with him when it's a published GMF rate but he won't be able to apply "cash" only incentives to the deal.

FYI: Do know that when you get shuffled over to the "finance" office to discuss all of the other things they want to tack onto your deal (wheel and tire insurance, fabric and paint protectant, etc..) when they offer to assist you with "bank financing" they do sometimes get better rates from the banks only offered through the dealership but you've got to be careful on those. The dealer always gets a kickback from the bank but they often get a bigger kickback if they sign you up for a higher interest rate. If they don't think you have done your homework, they'll usually start with the bank offering them the biggest kickback which is not always the lowest rate. Remember, they are working for them -not you.

Glad this post has generated some interest.
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Old 03-15-2019, 05:19 AM
  #22  
2FastCorvette4U
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So, if a dealership beats any rate you were able to get from a lending institution or credit union that you might bank with, it is a bad thing that the dealership made money? Itís okay to walk into a grocery store and buy food products that you are paying profits to that store on but not a dealership? Wheel and tire insurance for most customers that live in a city with tons of pot holes will more than likely pay for itself. You can simply say no to a lot of the products but some of the products do have benefit. The bank pays a kickback because you earned that bank a customer they would have never earned themselves, donít spout nonsense because you are sounding like a green pea that was in the business briefly, learned some dealership lingo and now thinks is an expert after getting blown out within year one like most.

Last edited by 2FastCorvette4U; 03-15-2019 at 05:30 AM.
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Old 03-15-2019, 08:50 AM
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Originally Posted by 2FastCorvette4U View Post
So, if a dealership beats any rate you were able to get from a lending institution or credit union that you might bank with, it is a bad thing that the dealership made money? Itís okay to walk into a grocery store and buy food products that you are paying profits to that store on but not a dealership? Wheel and tire insurance for most customers that live in a city with tons of pot holes will more than likely pay for itself. You can simply say no to a lot of the products but some of the products do have benefit. The bank pays a kickback because you earned that bank a customer they would have never earned themselves, donít spout nonsense because you are sounding like a green pea that was in the business briefly, learned some dealership lingo and now thinks is an expert after getting blown out within year one like most.
Happy Friday! 2FastCorvette4U. Obviously my response upset you but re-reading my post, there are nothing but facts stated. Apologies if it offended you in any way.

You are correct. You don't have to take any of the add-ons. That's your prerogative. The point I was trying to make is that most people who have not gone through the dealer buying process may not be aware of the next stage in the purchase process and all of the additional decisions you will be asked to make before getting to the final invoice.Those decisions usually add thousands to the purchase and most buyers feel compelled to make a decision on the spot to keep the deal moving.

True: If the dealer can get you a better rate then that's a win-win. My point here is that they usually have multiple offers/banks they deal with so it's important to ask if the rate/bank the dealer is suggesting is in fact the very best offer they have. It is completely logical that anyone in sales will want to sell the most profitable option.

The dealer should absolutely be compensated for providing the bank with new business but when the referral fees provide more profit when committing a buyer to a higher interest rate, you should not expect the dealer to provide the lowest rate first if it has the lowest profit margin for them.

Many buyers don't do their homework on existing finance rates or just check their current bank's rates which may not always have the lowest rate.

This is a competitive business. Example: My bank is 5.22% for 60 months. I found a local credit union offering 2.99% 60 months.

The dealer will usually ask if you've checked with the bank and what's the best rate you've been offered. If you tell them 5.22% and they come back with a rate of 4.5%, it sure sounds like a good deal.

I am sure though, that if myself -Joe Public can get 2.99% at the CU, the dealer probably has a similar deal but it probably pays a lower referral fee. It's not likely that would be the first option presented unless you told them that your deal was "subject to a good finance rate" during your price negotiation stage.

I have never worked at a dealership nor am I in the automotive industry but I've bought plenty of cars from dealerships and if I can share insight on the buying process to the benefit of someone who hasn't then I think this is a good thing.

The wonderful benefit of forums such as this one is knowledge sharing. Information is the most powerful negotiation tool. You don't have to agree with information posted nor do you have to take the advice but I am always appreciative when forum users post their knowledge on topics that I might not be familiar with.

Thanks to those who added more details under this topic as it's helped me understand a little more about current and past finance promotions.
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