GM Scales Back 120-Day Deferred Payment Offer In May

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - May 5, 2020

A small change in fine print has made GM's unprecedented APR deals a little less attractive in May. According to bulletins sent to dealers, the company is no longer allowing consumers the ability to combine a 120-day payment deferral with 0% APR financing for 84 months. Here's a look at what that means for buyers.

Those looking to buy a Chevy may notice that the brand is now offering a choice between 0% APR or the deferral as opposed to 0% plus the deferral. Meanwhile, GMC and Buick have actually both expanded interest-free financing to additional models but have stopped advertising the 120-day deferral altogether.

As a result, shoppers may be confronted with some confusing choices that can have a significant impact on one's finances.

For example, the 2020 Chevy Equinox offers a choice between 0% APR for 84 months or a $4,750 rebate. You can still get the deferral through GM Financial, just not with the 0%. The good news is that you can combine the deferral with the rebate if you take out a loan. Here's what that means in terms of payment and cost.

With a $30,000 vehicle, 0% APR would cost $30,000 at $357/month before taxes & fees. With the rebate, a more traditional 5-year loan at 5% would come out to $477/month and cost $28,590. That's a difference of $120/month, although the shorter loan would also lower the total cost of the purchase by over $1,400.

Here, a consumer looking for the lowest total cost and the flexibility of a 120-day deferral may find the rebate most appealing. On the other hand, being able to save $120/month with a 7-year loan may have a big impact on one's monthly expenses assuming you understand the pros & cons of an 84-month car loan.

Looking for more flexibility? At the moment, VW is continuing to offer one of the most aggressive financing offers from any major automaker. Nearly every single model is eligible for 0% APR for 72 months plus no payments for 120 days plus COVID-19 job loss protection.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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