0% financing incentives are back
U.S. automakers are banking zero percent financing and rebates to clear their showrooms of 2007 model cars. Ford starts its sale today. GM did it two days ago. But what's this? Even Toyota's getting into the rebate game, Jeremy Hobson reports.
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Lisa Napoli: So the Federal Reserve isn’t expect to raise interest rates as it closes two days of meetings today. But U.S. automakers just lowered theirs — to zero. Ford starts a 0 percent financing sale today, just two days after GM did the same thing. From Washington, Jeremy Hobson reports.
Jeremy Hobson: It’s nothing new for automakers to offer summer promotions to bring in customers. Just ask Dave Sedgwick, editor of Automotive News.
Dave Sedgwick: We expect these kinds of deals. In fact we’d be stunned if they didn’t happen.
He says they’ve become so common, consumers are desensitized to them. That’s why Ford wants to freshen things up a bit.
They’re offering a timely $2,007 cash back on trucks and SUVs while the zero percent financing deal is underway.
Still, Sedgwick says he doesn’t expect a big up-tick in sales for American automakers.
Sedgwick: What’s interesting though is the Japanese automakers used to be immune to this kind of incentive battle, but that’s starting to break down.
He’s talking about Toyota, which introduced rebates this month of up to $3,500 on the Tundra pickup truck.
The company just knocked GM out of its 76-year position as the world’s largest automaker.
I’m Jeremy Hobson for Marketplace.
Napoli: Meanwhile this morning GM said two private equity firms are buying its Allison Transmission unit for $5.6 billion.