GM Offers to Lock Finance Rates on Next Two Car Buys for People Who Buy 2005 Models

DETROIT November 10, 2004; The AP reported that General Motors Corp. said Tuesday that people who buy 2005-model vehicles with loans from the automaker's financing arm through Nov. 30 will also be able to lock in the interest rate on their next vehicle.

General Motors Acceptance Corp.'s "Lock `n' Roll" loan program will offer interest-free loans for up to three years, 2.9 percent for up to four years and 3.9 percent for up to five years.

"This program gives qualified consumers the opportunity to lock in a low interest rate not only on their current vehicle purchase but on their next purchase as well," Detroit-based GM said in a news release.

The loan program was to take effect Wednesday, the same day the Federal Reserve governors were expected to raise U.S. interest rates.

To get the same interest rates on a subsequent vehicle, a buyer would have to buy it before the first loan expires. The buyer could shorten the loan but not lengthen it and could choose a different vehicle, GM said.

GM sales fell 5 percent in October and were about even for the first 10 months of the year, compared with 2003.

Industrywide, incentives averaged $2,781 per vehicle in October, down 11 percent from the $3,120 average a month before, according to Autodata Corp. At GM, the average outlay was $4,051, $289 less than in September.