cancel
Showing results for 
Search instead for 
Did you mean: 

GM financial 0%

tag
Anonymous
Not applicable

GM financial 0%

I was told that if you qualify for 0% financing then you have to pay full MSRP of the vehicle and the other incentives don’t qualify . Is this true? Anyone have experience with this?
Message 1 of 13
12 REPLIES 12
sccredit
Valued Contributor

Re: GM financial 0%

You never have to pay full MSRP.  That being said most times subvented financing in in lieu of rebates.

Message 2 of 13
MitchDeerfield
Regular Contributor

Re: GM financial 0%

You were told by whom?

Message 3 of 13
LakeLife
Established Contributor

Re: GM financial 0%

In my recent experience (2016, see signature) there was one incentive (I think it was $500) for using Ford Credit that I wouldn't have gotten had I used someone else, so this absolutely not true.  I paid well under MSRP (car was $26k MSRP and I paid $21k) and used the 0% from Ford.  




Message 4 of 13
Anonymous
Not applicable

Re: GM financial 0%

The dealer, of course. He said many incentives you can’t use, you’ll have to pay close to MSRP. It’s an incentive of 750$ and 0% APR but he was saying the other ones wouldn’t be compatible and getting the cash back as opposed to using 0% APR would be a better deal.
Message 5 of 13
Remember0
Valued Contributor

Re: GM financial 0%

What car are you buying? Yes, sometimes you can't apply cash incentives if you take subsidized financing. However you can bring in your own financing (e.g., DCU or Cap One) and get the cash incentive.

 

Generally speaking I'd say a dealer that says this is lying. For very few models do people pay MSRP even before incentives. My bet is the dealer is trying to get you to pay too much here. I'd go to another dealer or call the bluff and say  "okay, I'll bring my own financing, what's the lowest price you can offer?" Highly encourage you to shop around.

Message 6 of 13
flan
Regular Contributor

Re: GM financial 0%


@Anonymous wrote:
The dealer, of course. He said many incentives you can’t use, you’ll have to pay close to MSRP. It’s an incentive of 750$ and 0% APR but he was saying the other ones wouldn’t be compatible and getting the cash back as opposed to using 0% APR would be a better deal.

Most financing offers are either a rebate or incentive financing (sub market, not always zero percent.), but no rebate.  Sometimes, particularly on slow moving vehicles, there's a rebate with the incentive financing, but it's less than the cash price rebate is.  They're usually designed so that they're about the same to the consumer -- the rebate is about what you're saving in interest.  That's not always true, you have to do the comparisons on everything you're considering.  Sometimes the rebates are better, sometimes the financing is. 

 

In general, you sould negotiate the price of the car as if the incentives don't exist.  Say you're buying a $40K sticker car, with a dealer cost (not invoice, they don't actually pay the invoice) of $35K, and rebates of $3500 or 0% financing.  If they sell the car to you for $36K, they're making a good profit, and they shoud be willing to sell for that price.  That the manufacture is providing rebates of $3.5K doesn't enter into their economic decision.  They're going to try to make you think it does, because car dealers are scum.  they'll tell you should pay "33.5K", which is wrong.  They're getting paid $37K for that car they're willing to sell for $36K. 

if the car you're looking at is in short supply, the selling price might be closer to the sticker, but the basic principal is the same. 

 

Remember, there are lots of dealers, and it's worth driving a few hours to save some money.  (A 10 hour round trip, say 500 miles one way, to save $1000 is $100/hr.  Allow for gas, and it's still a lot.).   I bought a car earlier this year.  I and my wife called 29 dealers.... 

 

 

Message 7 of 13
MitchDeerfield
Regular Contributor

Re: GM financial 0%

Any  dealer who claims  you have to pay MSRP for a new car is a liar, it's just that simple.  Stay away from  that place, he will not give you a square deal.  The zero interest loan comes out of the pocket of the manufacturer,  not the dealer.

Message 8 of 13
JGGM
Frequent Contributor

Re: GM financial 0%

Dang, some of y'all are kind of harsh. Guess I see it differently since I've worked at a dealership for a decade, specifically a GM branded store. At any rate, it is certainly possible that you give up all REBATES for 0%. You can still negotiate with the dealership on the sales price though. Or, if you want the rebates (because on some vehicles you could give up as much as $7,000 in rebates for 0%), then finance thru your credit union or another bank the dealer has. You could also have the dealership work the numbers both ways (i.e. take 0% vs take rebates). If you have good credit, there's a good chance it makes more sense to take the rebates and finance at a low percentage rate. Or if you don't want to lose the rebates and you don't want to pay interest, you could just pay cash for the vehicle.

Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred

Message 9 of 13
Anonymous
Not applicable

Re: GM financial 0%

Thank you all so much for your replies and advise. I’m new here btw but have been lurking for a while. I was looking to buy a 2019 Chevy Equinox premier which MSRP 37900 and rebates/incentives brought it to 28,900 which is not a bad price. But you have to qualify for them all, which I did. And according to them I had tier 1 credit. It was so many different scenarios to go but I couldn’t use all of them. I need to read up on how to negotiate the price because they just were not budging and even though it was 28k I still would’ve ended up financing 34-39k.

I wish I could pay cash for it Smiley Wink
Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.