Summary
– General Motors is offering new financing options for EVs to attract buyers who may not afford them upfront
– Chevrolet is allowing buyers to defer the first payment on their EV by up to 120 days
– The APR for these financing options is high, potentially leading to significant extra costs in interest over a six-year loan term
– Some EV models may not be eligible for federal tax credit, but GM is offering a $7,500 Ultium Promise Bonus Cash incentive
– There are other financing options available with lower APR rates, but the 120-day deferral offer is only valid for loans with an interest rate of 5.99% or higher.
Article
**Beware of High Interest Rates**
General Motors is eager to sell its new electric vehicles, offering financing and leasing options to attract new customers. One such offer allows buyers to defer their first payment by up to 120 days when financing a brand-new EV. However, the interest rates associated with these deals can turn a seemingly good offer into a financial nightmare. With APR rates as high as 9.29% for some models, buyers could end up paying thousands of dollars extra in interest alone over the course of a six-year loan.
**Promo Rates with a Catch**
Chevrolet’s new financing deal for its EVs appears attractive at first glance, with the opportunity to delay the first payment for up to four months. However, the devil is in the details, as the APR rates on some models can exceed 9% when additional dealer fees are factored in. This could result in significant added costs over the life of the loan, making the initial benefit of deferred payments less appealing in the long run.
**Costly Interest Charges**
For buyers considering a six-year loan on a $50,000 electric vehicle, the high interest rates associated with Chevrolet’s financing options could add up to over $15,000 in additional interest payments. This is a substantial amount that buyers should be aware of before committing to a loan with such high APR rates. In addition, some models may not be eligible for federal tax credits, further complicating the overall cost calculation.
**Incentive Confusion**
Navigating the various incentives and bonus cash offers available for Chevrolet’s EVs can be confusing for potential buyers. While some models may not qualify for federal tax credits, GM is offering a $7,500 Ultium Promise Bonus Cash incentive in certain cases. It is essential for buyers to clarify the incentive situation with the dealer before making a decision, as this could impact the overall cost of the vehicle significantly.
**Alternative Financing Options**
While the 120-day deferring offer may be appealing to some buyers, Chevrolet also offers better financing options with lower APR rates for those who prefer not to defer their first payment. With APR rates as low as 3.9% for certain models and loan terms, buyers have the flexibility to choose a financing option that better fits their budget and financial goals. It is crucial for buyers to explore all available financing options before committing to a loan with high interest rates.
**Final Thoughts**
As Chevrolet continues to expand its Ultium push and offer new financing and leasing options for its electric vehicles, buyers must remain vigilant about the associated interest rates. While deferred payments may seem enticing, the long-term financial implications of high APR rates should not be overlooked. By carefully reviewing the terms and conditions of each offer and comparing different financing options, buyers can make an informed decision that aligns with their budget and financial objectives.
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