Holden offering 0.5% finance and no deposit

[Brazen]

Looks like it is heating up, this will cost them a fortune but should be VERY popular.

0.5% FINANCE AVAILABLE AT HOLDEN DEALERS
Holden has announced that for the first time ever customers can take advantage of an incredibly low 0.5 per cent per annum comparison rate on a term of up to 36 months, with no
deposit, on a range of Holden vehicles*.

This national one week finance campaign sees Holden partner separately with three finance providers, Esanda, St George Finance Limited and Capital Finance Australia Limited, to
bring car buyers the lowest finance ever offered through Holden dealers. Holden Executive Director of Sales, Marketing and Aftersales, John Elsworth, said consumers were the big winner in today’s competitive marketplace as there had never been a better time to buy a Holden.

“Holden is known for its great deals but for anyone in the market for a new car this is one definitely not to be missed,” Elsworth said “This year we have already introduced capped priced servicing and now, through our finance providers, a great 0.5 per cent comparison rate that makes it even easier to get behind the wheel of a brand new Holden. “Whether it’s a Barina, a locally-made Cruze SRi or Commodore, our Captiva SUV or tough all-new Colorado 4x4, there’s a Holden to suit every new car buyer.” The exciting one week sale event starts on Thursday 9 August and will run until close of business Wednesday 15th August at participating dealers.

Details, terms and conditions can be viewed at www.holden.com.au/latestoffers from Thursday 9 August.

For more information on Holden, visit: www.media.holden.com.au or www.autonews.net.au

* Excludes Cruze CD, Cruze Equipe and Colorado 4x2 models.

[TheSneakiness]

I wish... if I could get a decent trade in on the Paj I would definitely take them up on that.

[Brazen]

I have emailed one of my nephews about it, he was looking at a Civic, but a Cruze SRI becomes a lot more attractive especially with capped price servicing.

[csv8]

There go Fords sales for a week..SRiV just became very attractive over a Focus Titanium!!!!!

[Brazen]

Originally Posted by csv8

There go Fords sales for a week..SRiV just became very attractive over a Focus Titanium!!!!!

But at what cost? This wont be a cheap exercise for Holden.

[Sorted]

This is Just Sad - at least it is only for a week

[stevz]

Hopefully they still have this when VF comes out.

EDIT: It's only for a week..

[Polyal]

Testing the waters I guess..if it works out then would they go to a 3-4% like some of the euro's.

Im no accountant so Im not sure how it all works, but props to them for giving something a crack.

[mik]

desperate measures i think , we have seen the odd holden dealer doing limited 5 year warranty`s to try and get a sale or 2, i reckon they will have to keep sharpening their pencils if they are going to compete with the deals asian car makers are doing.

[Shonky.]

Interesting to know what the difference between the cash price a buyer can negotiate an the price granted to a 0.5% customer

If RRP's are anything like Ford (in that people rarely pay it) then they will just have to firm up their pricing for the promo

Plus if models are getting on in their life cycle then a discount/addition of extras may be due anyway so cheap finance may just be another means with which to do this. You guys are probably better placed to know if this is the case or not.

Upshot is, there is never a free lunch

[Lukeyson]

Originally Posted by shonkymofo

Upshot is, there is never a free lunch

True that, and when it comes to finance deals, its normally a 'Hot lunch' ... lol

[bobthebilda]

Its now tuesday, it doesnt seem to be advertised (currently not even on Holdens website), so how many people are really going to take up the offer in the next week. i cant see any terms and conditions, but even if someone went in on thursday, what chances are that someone is going to be approved for the finance in the week (or have holden become so depserate for sales, they will approve anyone, isnt that how GM's credit subsidiary originally went bust, by offering loans to people they didnt check out properly). Importantly, the finance is only offered on cars they have been dropping prices for over the last few months (because people dont want that car), how many people could it sway in one week?

[Bossxr8]

This is pure desperation cause Commodore and Cruze slumped massively last month, both down 30-40% on last years July results.

[jpd80]

Originally Posted by Bossxr8

This is pure desperation cause Commodore and Cruze slumped massively last month, both down 30-40% on last years July results.

But only one week says it's a hurried exercise offering near zero interest to buyers on full RRP
And what kick back are those finance companies are getting... could it be the "missing discount"?

[2011G6E]

I'm shocked...I can't seem to see "available only to ABN holders" or something...it seems to be for anyone.

However, I do notice it's only up to 36 months...not many people get a brand new car and only pay it off over 3 years unless you're able to get a staggering trade in deal...

[burnz]

Originally Posted by jpd80

But only one week says it's a hurried exercise offering near zero interest to buyers on full RRP
And what kick back are those finance companies are getting... could it be the "missing discount"?

the kick back i would assume will be the same with bing lee/harvey norman,,
fail to finalise in the loan term 30+% interest from the begining of the load,,,back dated..

[Yellow_Festiva]

Originally Posted by 2011G6E

I'm shocked...I can't seem to see "available only to ABN holders" or something...it seems to be for anyone.

However, I do notice it's only up to 36 months...not many people get a brand new car and only pay it off over 3 years unless you're able to get a staggering trade in deal...

True, but to a cash buyer they will just get the finance and watch the dates carefully and pay the car out in full at 35 months.

In the mean time, their 20-35k is in a bank account getting 5.5ish %....

I guess there will be no price negotiation for this deal, pay the full RRP, get the finance deal.

If I were in the market for a car the deal will certainly make me take a 2nd look at a Holden.

[nstg8a]

this is exactly what i had hoped ford would do when i was shopping for my fg.

id rather have been deep in the hole for a brand new car on low interest than a four year old car on significantly higher interest.

[dieseltrain79]

Well I'm guessing the government injected 300 million $$ and now they need to show some turnover and sales ....

[bobthebilda]

Originally Posted by Bossxr8

This is pure desperation cause Commodore and Cruze slumped massively last month, both down 30-40% on last years July results.

The way i read it, its only available for the high end cruze and not the CD cruze (if thats the base model). They have just dropped the high end cruze price, so it will be interesting to see if they increase it if its bought in conjunction with the low interest. It is strange thats its available on the Barina. Holden has the Barina spark cd (currently on website) at $13990 Drive away. If Holden financed the $13990 at .5%, the buyer would pay back 36 payments $404.08 = $14546. If someone did it at 10% they would pay 36 x $465.62 =$16762. Thats a $2200 difference. If Holden sell them for $13990, they must be landing them at $10,000 (maybe less). Either Holden has got cheap finance (probably just using Fed. assistance money early), they are prepared to take some big haircuts to get sales moving, or more likely as i suspect the prices on Holden website will go up a few grand on Thursday.

[jpd80]

I think you're onto something, maybe this is merely to move excess stock they have, nothing more
or perhaps to get some walk ins to dealerships in the hopes of transforming them into other sales.

[Shonky.]

A calculation like Bob's will give you the answer.

But use 7% instead of 10 (Credit Union rates for secured personal loans) and combine this with the benefits to the Financiers of access to new secured borrowers plus as per above increasing showroom traffic and it is not that our of the ordinary.

While it's good for those who aren't able to successfully negotiate final sale price (or Finance for that matter) with a few smarts you can probably arrange a similar deal for yourself in terms of total cost of ownership (purchase and finance)

[Polyal]

Originally Posted by bobthebilda

The way i read it, its only available for the high end cruze and not the CD cruze (if thats the base model). They have just dropped the high end cruze price, so it will be interesting to see if they increase it if its bought in conjunction with the low interest. It is strange thats its available on the Barina. Holden has the Barina spark cd (currently on website) at $13990 Drive away. If Holden financed the $13990 at .5%, the buyer would pay back 36 payments $404.08 = $14546. If someone did it at 10% they would pay 36 x $465.62 =$16762. Thats a $2200 difference. If Holden sell them for $13990, they must be landing them at $10,000 (maybe less). Either Holden has got cheap finance (probably just using Fed. assistance money early), they are prepared to take some big haircuts to get sales moving, or more likely as i suspect the prices on Holden website will go up a few grand on Thursday.

While all of those scenario's are plausible the point still remains they are actively creating interest (love a good pun).

Odd how we can sit here and say they are struggling with ~1500+ sales on the Falcon...

Would a scheme like this get me into a new ford faster...yeap..it would make the allure of buying a demo or 1 year old car alot less attractive thats for sure; and from a manufacturers POV thats exactly what you want.

[1TUFFUTE]

this is same as ussual sus economics from holden australia. another numbers beats profit that shows where holdens priorities ae at and maybe why ford has been surviving so long n this harsh market. if their numbers get much lower...they are royally screwed and will go down veeerry fast.

[Road_Warrior]

Originally Posted by jpd80

I think you're onto something, maybe this is merely to move excess stock they have, nothing more
or perhaps to get some walk ins to dealerships in the hopes of transforming them into other sales.

Remember what I said about the number of unsold cars parked up at Holden's Elizabeth plant...here's proof they are there and they need to move them.

[duaned]

Tempted to do this for a SS-V. But I think it will be an import next.

[jpd80]

Originally Posted by Road_Warrior

Remember what I said about the number of unsold cars parked up at Holden's Elizabeth plant...here's proof they are there and they need to move them.

Elizabeth is around 400 /day, that's between 8,000 and 9,000 cars a month.
With 2400 Commodore, 1900 Cruze, 600 odd Utes, about 1,000 Caprice all up,
Holden is at least 2,000 too many...

[Brazen]

Originally Posted by bobthebilda

The way i read it, its only available for the high end cruze and not the CD cruze (if thats the base model). They have just dropped the high end cruze price, so it will be interesting to see if they increase it if its bought in conjunction with the low interest. It is strange thats its available on the Barina. Holden has the Barina spark cd (currently on website) at $13990 Drive away. If Holden financed the $13990 at .5%, the buyer would pay back 36 payments $404.08 = $14546. If someone did it at 10% they would pay 36 x $465.62 =$16762. Thats a $2200 difference. If Holden sell them for $13990, they must be landing them at $10,000 (maybe less). Either Holden has got cheap finance (probably just using Fed. assistance money early), they are prepared to take some big haircuts to get sales moving, or more likely as i suspect the prices on Holden website will go up a few grand on Thursday.

There is a 35% balloon at the end of three years. It doesn't apply to Cruze CD as they have been giving production priority to other local models and building way too few CDs to keep up with orders, it will take a few months to catch up on CD production.

[csv8]

Ford America are offering zero interest for 60 months.
http://credit.ford.com/

[davenl5l]

even scarier for sales kochie said on sunrise today that reno are going to offer 0% finance and $299 capped servicing and all the euros are going to match it i hope this does not mean RIP for local car makers in our unprotected industrie