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They probably offered you a rebate with a future cash value far exceeding the value of of the subvented financing, but few understand the principles of future values vs fixed rate subvented financing.
The interest rate is the smallest and most comprehensible number consumers deal with and an 80% reduction looks attractive, and is the most powerful marketing tool in the car sellers bag of tricks. And a subvented interest rate allows the manufacturer to pay by the month on the difference, pretty clever all the way around.
Posts in this Thread:
- Is GM in a death spiral?, MI-Roger , Fri, 2 Feb 2007 05:22:51
- Caused by the New World Order?...., Mike Lynch , Fri, 2 Feb 2007 17:14:18
- Fleet sales, Caarma , Fri, 2 Feb 2007 13:07:28
- Re: Is GM in a death spiral?, Justin VanAbrahams , Fri, 2 Feb 2007 11:23:13
- Re: Is GM in a death spiral?, Drew in Houston, Fri, 2 Feb 2007 09:12:22
- I don't understand business, OKSaabs, Fri, 2 Feb 2007 07:25:33
- Re: Is GM in a death spiral?, J.W. Vester - Saab USA, Fri, 2 Feb 2007 06:30:50
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