GM plans interest-free loans for 2003 models

NEW YORK, Sept 4 Reuters reported that General Motors Corp., will offer three-year loans carrying no interest for many of its 2003 models, a sign that the U.S. auto industry's price wars will continue, The Wall Street Journal reported in its Wednesday online edition.

GM is expected to disclose details of its latest round of discount deals for new-car buyers on Wednesday, as U.S. auto makers report sales for August, the Journal reported.

GM was not immediately available for comment.

Spurred by generous rebates to move 2002 models, industry officials expect strong August numbers, the Journal reported.

With stocks of unsold 2002 cars and trucks dwindling, the real action from now on will be on 2003 models, the Journal reported. In its new program, GM will offer zero-interest, three-year loans across much of its 2003 model year lineup, according to the Journal article. Longer loans will carry modest rates -- 2.9 percent on four-year loans and 3.9 percent on five-year loans, the Journal reported.

On many vehicles, customers will have a choice of cash rebates as well, typically $1,000 on sport utility vehicles and full-size pickups and $1,500 on cars and small pickups, the Journal reported.

GM's Saab and Hummer brands and the hot Chevrolet Corvette are excluded, and cash rebates aren't available on Cadillacs, although discounted financing rates are, the Journal reported.