GM Trades No Interest for Cash
General Motors Corp. is replacing its zero-interest loan sales campaign with an offer of a $2,002 discount on cars and trucks.
The company ran television advertisements with the cash offer on New Year's Day in the Chicago area. The ads included a tag line saying consumers will get a break on vehicles they "actually want to buy." That echoes comments that have been made by Vice Chairman Robert Lutz, who was hired by GM in August to improve the auto maker's designs.
The company's no-interest loan offer expired Jan. 2, 2002, and GM declined to confirm details of the replacement program or say whether the Chicago ads will be rolled out na-tionwide GM first offered no-interest loans after the Sept. 11 attacks, giving up profit it would receive from interest over the life of the loan to spur sales. An interest-free, 60-month loan would save a buyer between $4,000 and $7,000 in interest costs, dealers have estimated.