Last Updated on April 5, 2020 by Mark P.
In the midst of this global health crisis which has now turned into a financial crisis for the foreseeable future, General Motors (GM) is offering a deal to consumers in order to stay afloat as well as increase aggregate demand, which is almost too good to pass up.
According to a report this week from CNBC, “GM Financial is offering a 0% financing for seven years- two years more than recent programs – and four months deferred payments for those with A+ credit.” There is a catch however, this offer isn’t going to stay around for good.
GM Spokesman Jim Cain notified dealers of GM’s Buick, Cadillac, Chevrolet, and GMC vehicles this past Monday of the new offer, and that they only plan on offering this deal until March 31st of 2020. This once in a lifetime offer through this program is a direct response to the Coronavirus outbreak which immediately impacted U.S. auto sales as well as manufacturers because of the federal “social distancing” policies which in turn, disincentives not only going out to buy vehicles and so discourages consumer spending as a whole (basically anyone who started hoarding toilet paper knew this immediately this past week).
According to RBC Capital, they are expecting U.S. auto sales “to fall to 13.5 million vehicles, 20% below last year’s sales, as a result of the coronavirus.”
In the official statement from GM, Cain stated that they “wanted to reassure customers that we’re here for them and our dealers are here for them” and that the vehicle manufacturer has “never done this combination before,” stressing the importance of taking advantage of this deal before it ends in less than several weeks from time of publishing.
However, GM isn’t the only large vehicle manufacturer jumping into the deals fray. The same CNBC report states that Ford Motor and its financing announced Monday as well that they are offering a similar program to customers “who buy new vehicles with the option to delay their first payment for 90 days. This play is to incentive US customers to “contact the company to discuss potential delay of payments to provide relief” during the extent of the Coronavirus crisis caused by China’s deliberate hiding and misinformation of the threat of the virus to the global population.
These decisions by the two vehicle giants are but one example of the private sector coming to the aid of US consumers during this time of financial uncertainty long term as millions of Americans are now facing the greatest financial and health crisis in a generation.