General Motors is offering up to zero percent interest on some of its cars sold in the US, only days after a bailout loan of US$6 billion was approved for one of Detroit’s Big Three. The money is only enough to last until about March, but by then GM hopes the incoming Obama administration would have approved more loans for the auto industry.
American consumers can buy cars like the SAAB 9-5 and GMC Envoy at interest rates as low as 0%. This is one of the ways GM is trying to prop up sales after a year that very nearly saw the end of one of America’s icons as sales dropped dramatically and bankruptcy was almost filed.
South African consumers have been complaining about high car prices for years now, but no relief has been offered. When the National Credit Act (NCA) came into effect in mid-2007 CEO of McCarthy Motor Holdings Brand Pretorius predicted a surge in advertising spend from manufacturers and dealers alike who would go all out to entice buyers to dealer showroom floors as sales began slowing. No such luck.
In fact, some dealers became even less interested. I remember a friend of mine wanting to buy an Audi A6 last year. He went to three different Audi dealerships and in each one they did not even greet him as he walked in. He left each place without even talking to a sales rep! I'm certainly not picking on Audi at all as I'm sure every other automaker has similar horror stories on offer.
Let’s see if these folks wake up in 2009, smell the reality bean and start putting in some real work into selling cars. One CEO said when times were good anyone could sell a car and many people got into the business thinking they would make easy money. These days you can tell who the opportunists were and who the real car people are.
