General Motors is rolling out a new financing option for Chevrolet electric vehicles (EVs) that allows buyers to delay their first payment by up to four months, enticing those interested in going green but hesitant about the immediate cost. However, as always, there’s a catch. The deal, recently revealed in an official dealer bulletin, sounds like a sweet deal on the surface, but the devil is in the details, or more accurately, in the interest rates.
What?
Chevrolet’s latest financing offer gives buyers the opportunity to postpone the first payment on a new EV for a considerable 120 days. The catch here is the interest rates. The “promo rate” for a 72-month loan is 5.99% for the 2024 Chevrolet Equinox EV and a steeper 7.79% for the larger Blazer EV. Furthermore, dealers have the liberty to increase these rates by an additional 1.5 percentage points, potentially resulting in an APR as high as 9.29% for the Blazer.
Why does it matter?
While delaying that initial payment might sound like a fantastic deal, the hefty interest rates can quickly turn the celebration into a six-year financial burden. For instance, a $50,000 car could accumulate over $15,400 in interest alone, excluding additional costs like taxes and fees, making it a less appealing offer for potential buyers in the long run. Additionally, early Blazer EV and Equinox EV models miss out on the $7,500 tax credit, with GM offering a $7,500 Ultium Promise Bonus Cash instead, further complicating the incentive landscape for buyers.
How is it going to shape the future?
If the deferred payment doesn’t suit your financial plans, Chevrolet does offer better financing options starting at an APR as low as 3.9% for a 60-month loan, particularly for the all-electric Equinox. It’s essential to note that the 120-day deferral isn’t an option for loans with rates below 5.99%, providing more flexibility for potential buyers who don’t mind making payments sooner to secure friendlier interest terms.
In conclusion, while Chevrolet’s delayed payment scheme may seem like a tantalizing offer for those eyeing a new EV, it’s crucial to weigh the initial relief against the long-term financial implications caused by steep interest rates. Prospective buyers must delve into the specifics — including tax incentives and additional bonuses — to make an informed decision that aligns with their budget and financial goals.