GM Offers 0% Financing On 5-Year Loans For Some Models

DETROIT January 8, 2004; Sharon Silke Carty writinf for Dow Jones reported that General Motors Corp. announced it is offering interest-free five-year loans on most new 2004 cars and trucks.

Customers who choose not to use the interest-free loan will be given varying amounts of cash back, depending on the model.

The company started the month with a Hot Button promotion, which promises to give away 1,000 cars and trucks in 54 days to customers who come in to showrooms and press an OnStar button inside the car. GM is hoping that simply bringing people into the showroom will help drive sales.

January is a traditionally slow month for auto sales, but GM saw a big drop- off last year after aggressive December 2002 promotions kept people at home. The company blames a slow first quarter for the small decline in market share it saw over the year.

The company is offering the least amount of financing incentives on the Chevy Aveo, its low-priced small car offering; the Cadillac CTS, SRX, DeVille and Seville; and the Chevy Colorado and GMC Canyon trucks.

The Aveo, Colorado, Canyon and Chevy Malibu also have the least amount of dealer cash offered, at $1,000.

The company seems most eager to sell Chevy Avalanches and Trackers, the Oldsmobile Alero and Pontiac Grand Am, which each come with zero percent financing or $3,500 cash back.