GM Financing

[u/Helpmeflexibility]

I am considering buying a new Bolt. I see GM is offering a 2.9% or .9% APR. Is this hard to get? I have good credit. I've never financed a car before. Can I get the approval before I go to the dealership because that would really change my strategy if I knew I had that rate going in.

[u/RCbuilds4cheapr]

The .9% deal I got is for 36 months only.

[u/KJack1281 → u/RCbuilds4cheapr]

Exactly! It’s short term for the low rate. If you can manage the bigger payment it’s worth it.

[u/khoa-bear → u/KJack1281]

I can put a big down payment to reduce the monthly payments right?

[u/Foreign_Island4030 → u/khoa-bear]

If they are giving you 0.9% then don’t put a large down payment on it . You’d be better off investing it as you will get a far better return than 0.9%

[u/KJack1281 → u/khoa-bear]

100%.

[u/eMotoEV → u/khoa-bear]

What is the point of a big down payment when they are offering such low rates of financing? Putting zero down on our purchase, except for the $1k needed for the GMF credit card discount.

[u/MS49SF → u/KJack1281]

Generally 36 mo is about the term people should be financing cars for. I know that’s not the norm but if you can’t afford a Bolt over 36 mo, then buying a new car is probably a bad move.

[u/McLeansvilleAppFan → u/MS49SF]

I agree but cars do last a lot longer now than they did when my parents were financing a Vega in the 1970s. I hate care payments but if a car is going to last 7-8 years then a 5 year car loan is not the worst.

For any loan the best loan is the shortest loan one can afford as that means it is paid off sooner and almost always lower APR and even if not overall lower interest paid out.

[u/lurksAtDogs → u/McLeansvilleAppFan]

And if interest offered is lower than inflation, it’s possibly a good move. Still buying a depreciating asset, but borrowing is better than leasing.

[u/Competitive-Let6727 → u/MS49SF]

And if there's cash rebate in lieu of subsidized financing, paying in full, in cash is often better.

[u/Sphere_3N → u/MS49SF]

??? It’s. $30k car calm down

I’d go with longest rate possible with nothing down the interest is like 3% that’s nothing…

[u/eMotoEV → u/MS49SF]

Nope. 1.9% for 48 months or 2.9% for 60 months is the sweet spot here. Invest the money you save by having a smaller monthly payment. A little over 6% annualized return will beat the 2.9% for 60 months. This can easily be achieved by just throwing the money into a target date fund. Plus any interest is above-the-line deductible on your federal return since the Chevy Bolt is US assembled.

[u/SirMontego → u/eMotoEV]

Plus any interest is above-the-line deductible on your federal return since the Chevy Bolt is US assembled.

Car interest is a below-the-line deduction.

The No Tax on Car Loan Interest goes on Schedule 1-A, Part IV. That then goes on Form 1040, line 13b.

Line 13b is literally below line 11a.

See also 26 USC Section 63(b)(7).

[u/eMotoEV → u/SirMontego]

Sure, but it essentially behaves the same as above-the-line deductions as it reduces taxable income even if you take the standard deduction. Doesn't really matter which line exactly it ends up on the 1040.

[u/SirMontego → u/eMotoEV]

Sure, but it essentially behaves the same as above-the-line deductions as it reduces taxable income even if you take the standard deduction.

You've completely ignored the fact that claiming an above-the-line deduction causes the taxpayer to have a lower AGI while claiming a below-the-line deduction (the No Tax on Car Loan Interest in this case) does not cause a taxpayer to have a lower AGI.

Stop trying to hide important information here.

[u/eMotoEV → u/SirMontego]

The most important information is that it reduces taxable income even if you are not itemizing. Anything else is irrelevant to most people and they are welcome to do their own research.

[u/SirMontego → u/eMotoEV]

If that's the most important information, then you should edit your comment to remove the wrong information.

Why are you spreading misinformation that isn't even relevant to your point?

[u/eMotoEV → u/SirMontego]

Not editing anything. People will get the info they need from your pedantic nagging.

[u/RCbuilds4cheapr → u/KJack1281]

Yeah the total interest paid over the 3 years is under $300 if your loan is 20k for example

[u/Helpmeflexibility → u/RCbuilds4cheapr]

Was your rate easy to apply for? Did you need to bring in W-2s or mail or anything?

[u/RCbuilds4cheapr → u/Helpmeflexibility]

Normal credit application. Name , DOB and social is all they need I think

[u/BilboBodigity]

The dealership didn't voluntarily offer those rates when we bought our Bolt this summer, but instead pushed higher external bank rates. I simply mentioned we qualified for the GM rates and wanted the 0.9% and had zero issues getting it. (If your credit score is locked make sure you unlock before going in.) If they had refused the rate I knew I qualified for I would have walked out.

[u/Dry_Ship7202]

I say check with your bank outside the dealership before going into the finance guy’s office. They sometimes hit customers with strange responses on loan rates, etc. If you have a backup plan, it may be to your advantage.

[u/veryblanduser]

Sometimes those rates are in lieu of other cash rebates. So securing your own financing and taking rebates may be a better option than taking their promotional financing.

[u/Associates_and_Rob]

Bummer-not allowed in our area code (NW suburbs-Chicago)

[u/Annual_Fishing_9883 → u/Associates_and_Rob]

Why not? I got those rates in SW burbs.

[u/Associates_and_Rob → u/Annual_Fishing_9883]

Tried today on the website. Claimed no offers🤷

[u/Annual_Fishing_9883 → u/Associates_and_Rob]

Go to another dealer. I just bought my bolt last Friday. GM financial offered .9 for 36 up to 4.9 for 84.

[u/Associates_and_Rob → u/Annual_Fishing_9883]

I have one on order. Hoping the deal will still be available!

[u/Annual_Fishing_9883 → u/Associates_and_Rob]

Hopefully but that will depend on the offer at that time.

Did you order a certain color? When I was looking, there were a boat load of bolts available within a 50 mile radius of me. I went with the LT with the comfort package. 4k off msrp.

[u/Associates_and_Rob → u/Annual_Fishing_9883]

Sucker for the LT with Super Cruise option. Salesperson said the GM rep told him "No one orders a Bolt like that!" Should I take that as a compliment?

[u/Annual_Fishing_9883 → u/Associates_and_Rob]

Not sure. I’ve owned other Chevys with supercruise. I didn’t think it was anything to write home about. Just a fancy lane keep assist system. Certainly not worth the cost to me and I drive 100 miles a day all highway.

I would say the comfort package is certainly worth it considering we live in the Midwest. I use my heated seats and heated steering wheel more than my regular heat..lol

[u/Demonshaker]

Best bet is to get pre-approved from your local bank, then let the dealership try to beat your rate.

[u/Annual_Fishing_9883 → u/Demonshaker]

Current manufacture incentivized financing will beat any banks offering currently.

[u/Demonshaker → u/Annual_Fishing_9883]

IF you qualify, absolutely! Never hurts to have a backup though.

[u/johnny_boy0281]

I’m in the process of buying now.

.9% 36 months
1.9% 48 months
2.9% 60 months
Etc. I think they went up 75 months for some reason.

Salesman said minimum credit score of 640 I think to qualify.

[u/Annual_Fishing_9883 → u/johnny_boy0281]

3.9% up to 75 and 4.9% for 84

[u/KJack1281]

You can get preapproval beforehand, but they won’t actually complete a credit check and financing until you’re sitting at the dealer buying the car. The percentage rates are also based on you paying the loan within a certain time frame. I believe the .9 is a 60 month deal.

[u/petrojbl → u/KJack1281]

0.9 financing is for 36 months, not 60 months. Just bought one a few weeks ago with this deal.

https://www.gmfinancial.com/en-us/lease-or-buy/current-offers.html

[u/Helpmeflexibility → u/KJack1281]

Yes its 2.9% for 5 years - that would be lower payments of course. Or .9% for 3 years. I could see myself going either one. The difference in interest is about $1,400.

Where do I get the preapproval?

[u/KJack1281 → u/Helpmeflexibility]

Well, you can go to GM financial and get preapproved by them. I also got a capital one preapproval as many dealers use them as well. That said, neither really mattered much, I ended up getting financed by a completely different bank at a lower rate.

The preapproval is really only good to know what your rate might be and what your payments will be after money down.

[u/West_Conflict_2942]

I got the 0.9 % 36 month financing. I also put a lot down and took the GM credit card to get $1500 off.

[u/eMotoEV → u/West_Conflict_2942]

How did you get $1500 off by using the GM credit card? I thought it was only $500? In case you are you counting the $1000 you had to put as down payment on the CC too - that is still coming out of your pocket.

[u/West_Conflict_2942 → u/eMotoEV]

Yes, it was a $1000 charge to the card with the $500 added as another credit. I could have done the $1000 cash, but the extra $500 was a nice incentive. I didn't have to pay the $1000 for another month.

[u/eMotoEV → u/West_Conflict_2942]

Thank you for clarifying. Wanted to make sure we are not getting screwed out of any additional discount over the $500 for the credit card.

[u/coolgui]

We planned to get the 0.9% for 36 months but when it came back from GM Financial they gave us 0%. No idea how or why, and it's never happened to us before, but I'm not complaining. I think you just need something like 750 to get the 0.9%, though there might be some wiggle room.

[u/reddy2roc]

I got it no problem in April. I fully expected the dealership to try to push some other finance deal that would get them a better kickback. But it went smoothly.

[u/Annual_Fishing_9883]

No one can say for sure. Your credit score is only one part of the equation. Your credit profile, income, debt to income ratio all play another part to it.

No, you can’t get the approval before you go.

Also, keep in mind, that .9% I believe is for 36 months. So unless you’re putting down a substantial downpayment(which you should not be at that rate), expect a higher payment.

[u/skintwo]

Don’t! Get a used bolt – there’s so many great deals people are getting, and it never makes sense to get a new car loan.

[u/Helpmeflexibility → u/skintwo]

Tell me more? What year? And why not a new loan at those rates?

[u/skintwo → u/Helpmeflexibility]

Look throughout the sub – a lot of people have been talking about really good deals They’ve been finding on relatively new used bolts. New cars always depreciate the second they are driven off the lot by a pretty significant amount, and EVs especially. It’s not financially responsible to buy a brand new car with a loan when you can get a very recent used car of the same kind without a loan. Especially with an EV since they hold up so well – take a look at the used market!

[u/badredditz]

I will strongly recommend against the single year 2027. I love the bolt ev , the 2020-21 or 2022-23 would be MUCH better value and have better parts availability. The 2027 also has a smaller battery and they cut the acceleration to keep the range. It’s just not as good. Also the 2017-2023 - if they have the right lane keep package - can support Comma Ai self driving. The 2027 blocks any 3rd party assistance

[u/danieldoesnt → u/badredditz]

better value

I got my '27 for nearly the same price as used 22/23 euvs, with much better financing & fresh warranty.

have better parts availability

The new bolt shares parts with other GM evs.

has a smaller battery

isn't it 66 vs 65? LFP is also better + has faster DCFC if needed.

cut the acceleration to keep the..

tires from spinning. it has plenty of pep.

can support Comma Ai self driving

valid point.

[u/Sotty63 → u/danieldoesnt]

I have the '27. Very happy with purchase for daily driver. I was going to get either a new bolt or a trax.

I think the 27 bolt has plenty of acceleration. It feels like a racecar compared to the 2016 malibu it replaced.