2007-11-22 02:01:35 · 3 answers · asked by sailorboy 4 in Business & Finance ➔ Other - Business & Finance
to get this financing, you give up the discounts from the purchase price that you might get by bargaining hard and paying cash.
GMAC and FMC, etc. borrow most of their funds in the commercial paper market. At today's estimated rates, they're paying about 6%.
what actually happens is that GMAC buys the loan paper generated for less than its full stated value [they probably use the same discount rate as a bank would charge for a similar loan] and the maker reimburses the dealer for the difference.
GM then reports the difference as a reduction of the sale price, just like they would a 3,000 cash incentive to the buyer.
oh
2007-11-22 02:13:47 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
This is a misleading ad. If 100 people walk in a car delarship approxiately only 33 to 35 of them who qualify for a 0% loan. The rest will end up with loans that would have an APR rate depending upon their situation.
2007-11-22 02:52:22 · answer #2 · answered by Gary 5 · 0⤊ 0⤋
You have to face it, credit is a very expensive commodity and therefore, there is no such thing as 'free credit'.
Nobody 'gives' you anything these days. Any so-called give-aways have already been adjusted in the price of the article, whether it be a car, a sofa or anything else.
There is no such thing as free credit!
2007-11-22 02:08:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋