Here’s a look at some recent auto loan programs:
CommonWealth One Federal Credit Union
Program: Sunsational Auto Loans, through Sept. 30
Details: Rates as low as 2.99% for up to 72 months on 2006 or newer vehicles
Extras: The first payment can be deferred for 90 days, and anyone who gets a loan during the promotional period is entered to win one of three $500 prizes. Members can refer someone for a Sunsational Auto Loan using a “Golden Ticket.” When a loan attached to a “Golden Ticket” is disbursed, both the referring member and the loan recipient receive a $50 deposit into their CommonWealth One account. Plus, the borrower is entered into a drawing for a $500 Visa Gift Card.
More Info: www.cofcu.org/GoldenTicket
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Cottonwood Community Federal Credit Union
Details: Rates as low as 3.99%, with terms as long as 84 months for new and 72 months for used. Financing for up to 100% of the purchase price.
More Info: www.ccfcu.coop/rates.php
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General Motors
Program: A free one-year insurance policy to people who buy or lease a new 2010, 2011 or 2012 Chevrolet, Buick, GMC, or Cadillac by Sept. 6
Details: MetLife Auto & Home is providing the policies, which include liability, collision, and comprehensive coverage. The incentive is being tested in Oregon and Washington, and may ultimately be expanded.
More Info: www.chevyinsurancebreak.com, www.buickinsuranceoffer.com, www.gmcinsuranceoffer.com, www.cadillac.com/insuranceoffer.com
Even with a cost of money at 0%, hard to make a profit on 2.99% for 72 months.
But as a limited time offer, it gets attention and hopefully a lot of free media.
The functional operating loss may be subsidized by their marketing budget.
It is good news for the public and will hopefully generate car sales.
Agreed, Frank.
And “hopefully” is certainly the operative word when it comes to incentives spurring sales. Here’s a look at an analysis from November that showed that higher incentives don’t always translate to higher sales: http://autofinews1.wpengine.com/profiles/blogs/are-incentives-working-again
Higher end vehicles have the most profit margin (therefore bigger discounts/rebates/advertising allowance) in them; however,someone may have access to car sales data bases to better answer your question.