OK. I've been noticing that GM and Chrysler have been offering 0% financing for 6 years on their cars for the last two months. Being a numbers person by trade, I start to wonder how exactly a company can make a profit doing so. Clicking the link below you can see GMAC's financial results for the 1st 6 months of 2009. This bastion of brilliance has managed to lose $4.6 billion in 6 months. The website also reveals that they are borrowing at 6.3%. So, let's see - you borrow at 6.3% and lend money at 0% and you lose $9 billion per year. Got it.
So how on earth do you stay in business? Well when good old Joe and Jane Taxpayer are helping out, it's easy.
GM - Recipient of $10.4 billion in taxpayer TARP funds
Chrysler - Recipient of $5.5 billion in taxpayer TARP funds
GMAC - Recipient of $5.0 billion in taxpayer TARP funds with a requirement to lend to people with 620 FICO scores
We are being asked to bend over and take it up the A$$, so Obama and his government owned car dealers give your money away to any loser with a breath so they can "buy" a car. When the loan goes bad and the TARP money runs out, they will replenish these worthless pieces of $hit companies with more of your tax dollars.
Is this clear?
Holidays mean specials on new cars. And what could be more patriotic during Independence Day weekend than buying an American car? From today through July 6, GM is offering 0 percent financing for up to 72 months for qualified buyers on select 2009 and 2010 vehicles in dealer stock, including Chevrolet Silverado and GMC Sierra pickups; Chevrolet Suburban and GMC Yukon XL; Chevrolet Impala; and the Pontiac models: Vibe, G3, G5, G6 and G8, Solstice and more.
Most other vehicles, such as the Chevy Malibu Hybrid, will have reduced rate financing of 0 percent for up to 60 months, instead. Note that you have to take delivery by July 6 according to the current offer. For details on all GM offers and models, see here.
We used that link to search for the deals in our area and found that the 72-month financing deals applied primarily to 2009 models. (We even saw a 2008 Corvette on the 60-month plan.)
Additionally, GM is pointing out that it has 74 different models - twice as many as any other auto manufacturer - that may qualify under the new Federal CARS (Car Allowance Rebate System) "Cash for Clunkers" program, although that program won't go into effect until July 23rd, after this 72-hour sale is over.