USA: General Motors finance unit launches "Lock and Roll" fixed-rate finance deal for multiple car purchases
General Motors is offering those who buy 2005-model vehicles using loans from its financing arm until November 30 the same interest rate on their next vehicle.
The Associated Press (AP) said General Motors Acceptance Corp.'s "Lock `n' Roll" loan programme will offer interest-free loans for up to three years: 2.9% for up to four years and 3.9% for up to five years.
"This programme gives qualified consumers the opportunity to lock in a low interest rate not only on their current vehicle purchase but on their next purchase as well," GM reportedly said in a news release.
AP said the loan programme would take effect on Wednesday, the same day the Federal Reserve governors were expected to raise US interest rates.
To get the same interest rates on a subsequent vehicle, a buyer would have to buy it before the first loan expires. The buyer could shorten the loan but not lengthen it and could choose a different vehicle, GM said, according to the report.
GM sales fell 5% in October and were about even for the first 10 months of the year, compared with 2003, the Associated Press noted.
Industry-wide, incentives averaged $US2,781 per vehicle in October, down 11 percent from the $3,120 average a month before, according to Autodata Corp figures cited by AP. At GM, the average outlay was $4,051, $289 less than in September.