Friday, June 27, 2014

Chevrolet Offers 14.7% APR Financing To “Well Qualified” Corvette Buyers

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While perusing Chevy's website to see if there is any color of the 2014 Corvette that actually makes the car look halfway decent, I came across the financing offer pictured above. And, no, I did not enter any personal info that would lead GM's captive Ally Financial (or whoever the hell GMAC is now) to deem me only eligible for such a high interest rate. Just what is going on here?

A quick look at other Chevrolet vehicles on the site show financing offers of 3.9% to 4.9% APR. These rates may be subvented, or bought down by the manufacturer to help move slow-selling iron, though with car loan rates being under 2.0% by independent banks in much of the US, one has to wonder how much Ally is being charged for their money. Even if they are paying a sky-high 4.0%, it is a mystery why they would advertise a 14.7% loan on the Stingray, rather than, say 6.0% or 7.0%. Ally and the dealers would make a fortune on this 72-month loan but I don't think they will get any takers because unlike buying the Corvette itself, with dealer price gouging running rampant, consumers actually have many choices when it comes to financing.

I can only conclude that either this offer is in error (maybe even their marketing folks are slammed by the recall crisis) or Ally Financial is simply not interested in $50,000+ loans.

What say you?

 



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