You Can Delay The First Payment On A New Chevrolet EV By Up To 4 Months, But There’s A Catch
Watch out for that interest rate. It might just turn a seemingly good deal into a long-term financial nightmare.
May 31, 2024 at 11:00am ET
General Motors wants to sell as many new electric vehicles as possible–that’s how businesses work, you know. As part of its renewed Ultium push, the American automaker is offering more and more financing and leasing options, and this latest one is aimed at people who are looking to get a new EV but maybe can’t afford it at the beginning.
According to an official bulletin sent to dealers and seen by Cars Direct, Chevrolet is offering buyers the option to defer the first month’s payment by up to 120 days–that’s almost four months–when financing a brand-new EV. However, the devil is in the details, so make sure you read the small print twice before you make a decision.
More finacing options don’t always mean better deals
Chevrolet is offering a new financing deal for its EVs where the buyer can defer the first payment by up to 120 days. But with a big interest rate, the initial joy of not having to worry about payments might turn into a stressful six-year loan.
The problem lies with the annual percentage rate, which is offered at a “promo rate” of 5.99% for 72 months on the 2024 Chevrolet Equinox EV and 7.79% on the larger Blazer EV. Furthermore, GM Financial allows its dealers to hike these rates by an additional 1.5 percentage points, leading to an APR of 9.29% in the case of the electric Blazer.
As Cars Direct points out, that’s an awful deal for someone who’s taking a six-year loan on a car that costs $50,000, as it would result in over $15,400 paid extra in interest alone, even without factoring in taxes and fees.
At the same time, the first Blazer EV and Equinox EV units aren’t eligible for the $7,500 tax credit when purchasing, but later models are. To add to the confusion, GM is offering a $7,500 Ultium Promise Bonus Cash incentive for EVs that don’t get the federal tax credit, so make sure you ask the dealer what’s the incentive situation for the specific car you’re trying to buy.
If you don’t want to defer the first payment, Chevrolet has better financing options with an APR as low as 3.9% for a 60-month loan on the all-electric Equinox. Keep in mind, however, that the 120-day deferring offer isn’t available for loans with an interest rate lower than 5.99%.
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