Car sale loans go even lower

Press, 1 September 1986, Page 10

Car sale loans go even lower

NZPA-Reuter Chicago

Ford and Chrysler have joined General Motors in offering new car loans at extraordinarily low rates. Chrysler has gone to 2.4 per cent, the lowest in American industry history.

Ford, which matched GM’s 2.9 per cent rate, and Chrysler said they were acting to remain competitive, not because their dealers had a glut of unsold 1986 cars on their hands.

GM, by comparison, acted to rid show-room floors of an estimated one million 1986-model cars and trucks.

Chrysler said its 2.4 per cent financing for 24-

- month loans would apply to all 1986 cars and most 1986 trucks, plus some 1987-model cars. Ford’s 2.9 per cent rate applies to 36-month loans on most 1986 models. The car-makers will offer cash rebates; to buyers not financing their cars — up to SUSISOO at GM and Chrysler, and up to SUSIOOO at Ford. The new GM financing plan could cost the country’s biggest car-maker as much as SUS2OO million, in the view' of some analysts. But it was good news for consumers, and they responded by crowding show-rooms at the start of the (northern) summer’s final three-day holiday week-end.