With amazing financing rates.
Automakers were among the companies caught off guard by the coronavirus outbreak. Many factories have already been shut down in Europe, auto shows have been canceled, and new product reveals have been pushed back. In these uncertain times, it remains to be seen how greatly the auto industry will be impacted as many potential car buyers may decide to put off their purchase or could be unable to make payments. Ford has announced a financial assistance program and Hyundai and Genesis will offer up to six months of payments.
General Motors will be taking a slightly different approach. As GM prepared to roll out new products like the Buick Encore GX, Chevrolet Tahoe, Chevrolet Corvette, and GMC Yukon, the company will offer lower interest rates to incentivize people to keep buying.
GM Financial has just announced zero percent financing for seven years, which is two years longer than it previously offered. Buyers with A+ credit will also be offered four months of deferred payments. If you have the lower A1 credit rating, you can still qualify for the deferred payments but not the zero percent financing. GM spokesman Jim Cain says these incentives will be available through March 31, 2020.
"We wanted to reassure customers that we're here for them and our dealers are here for them," Cain told CNBC. "We've never done this combination before."
As people are urged to practice social distancing, the economy could be facing a strain unlike any we have seen since the great depression. The auto industry won't be the only sector impacted but sales are expected to end up well below last year's numbers. Zero percent financing may not be enough to stoke auto sales right now but it is nice to GM and other automakers stepping up to the occasion to help people buy a new vehicle.