An offer of 0% APR financing for 72 months is aggressive for any car loan. General Motors Co.’s (NYSE: GM) Chevy is pushing it across most of its pickup line and a portion of its large sport utility vehicles. Among the reasons for the offer may be that it’s flagship Silverado has been handily beaten in the rate of sales growth this year by its two primary rivals, the Ford Motor Co. (NYSE: F) F-Series and Fiat Chrysler Automobiles N.V.’s (NYSE: FCAU) Ram.
The Chevy offer is for “qualified buyers” and on “our most popular trucks.” This excludes some versions of its Colorado model. Included are most versions of the Silverado, the 1500, 2500HD and 3500HD. The deal also covers its massive Suburban LT and its Tahoe LT Midnight.
The Silverado is Chevy’s and GM’s best-selling vehicle. It is typically one of the three top-selling vehicles in America. This year, through September, its sales are down 1.6% to 418,950. Sales of the industry leading F-Series are up 10.6% over the same period to 658,636. Sales of the Dodge Ram are up 3.8% to 374,910.
Silverado sales were 19% of GM’s total vehicle sales from January through September. It is not a good sign that GM has to offer large incentives on so much of its inventory.
GM makes it clear that it can pick and choose who gets the offer. Buyers must also go through GM Financial:
Monthly payment is $13.89 for every $1,000 you finance. Example down payment: 6.16%. Must finance with GM Financial. Some customers will not qualify. Not available with lease and some other offers. Take delivery by 10/31/17.
Incentives are considered a softening of the financial foundation of any car company. They are also considered among the few methods to bolster weak products. Although Chevy’s pickups and SUVs are in the hottest parts of the market, GM has decided they need help to maintain their market share.