As the EV market all around the world is booming, General Motors is looking to boost sales of their new EVs like the Equinox EV and Blazer EV.
To attract more customers, the automaker is introducing innovative financing solutions for new Chevrolet EVs. In this article, we’ll discuss GM’s latest move allowing buyers to delay their first payment on these models. Read on to learn the key details.
The automaker hopes this new option will convince drivers to choose their electric options. You’ll want to carefully review all aspects of the program to ensure it works well for your situation. Stay with us to the end to get all the facts about GM’s deferred payment offering.
Deferred Payments for Up to 120 Days
GM is giving buyers the choice to push back their first monthly payment on the 2024 Equinox EV or Blazer EV up to 120 days. This aims to ease the initial cost of purchasing the vehicle.
However, there are important factors to consider with this offer. Customers are still liable for interest accrued in the interim. The advantage is spreading out cash needs up front. But customers must evaluate if overall interest paid outweighs temporary relief.
Several automakers offer novel ways to address EVs costing more up front versus gas versions. Make sure to understand what is covered and do math to avoid unwanted financial surprises down the road.
Buyers also need to check if their specific vehicle qualifies for any tax credits or bonuses available from GM.
High APR Rates: The Hidden Cost
GM is offering buyers the option to delay their first payment on the Chevrolet Equinox EV and Blazer EV by 120 days. While this sounds attractive, the promo rates come with a catch.
For the Equinox EV, GM Financial is providing a rate of 5.99% for 72 months. The Blazer EV has a slightly higher rate of 7.79% over the same period. However, GM allows dealers to increase these rates by 1.5% more.
This means the actual rate on a Blazer EV could be as high as 9.29% APR. At this rate on a $50,000 loan, the total interest costs are estimated to exceed $15,400 over the 6 year term.
Buyers need to look closely at the fine print before deciding. Additional interest charges can end up costing significantly more in the long run versus the short term benefit of pushing back payments. Knowing all aspects of the offer is important for customers to maximize savings.
Eligibility for Tax Credits and Incentives
While the new Equinox and Blazer EVs qualify for the $7,500 federal EV tax credit, earlier models may not be eligible. For those select units, GM is providing $7,500 cash termed as “Ultium Promise Bonus”.
It is crucial for buyers to confirm with dealers whether a particular vehicle qualifies for tax credits or other offers from the company. Changes in rules means information gets outdated rapidly.
Understanding incentives upfront helps reasonably judge the vehicle’s actual price before making the purchase decision. Customers must clarify all rebate/credit particulars for their specific model of interest.
The Equinox and Blazer EV: A Closer Look
Chevy is focusing on their new electric Equinox and Blazer SUVs. The Equinox EV starts at $43,995 for the 2LT model. Meanwhile, the lower priced 1LT version at $35,000 is set to be available soon. GM states the Equinox EV has over 300 miles of range.
For the Blazer EV, the new starting price is $50,195 for the 2LT model. A cheaper one is expected later this year below $50k as well. Both EVs get $7,500 tax credit, lowering Equinox to $35,795 and Blazer to $42,695.
While the 120-day payment deferral sounds good, buyers must understand the specifics of the financing offers. The promo rates allow dealers to hike numbers without transparency. Consumers need full knowledge to avoid undesirable outcomes down the road.
Competitive Analysis: Chevy vs. Tesla and Hyundai
Chevy faces competition from Tesla and Hyundai. Tesla’s Model Y, eligible for the tax credit, has a really low rate of 0.99% for 72 months. This makes it a better value.
Hyundai’s Ioniq 5 built in Georgia may qualify for the tax credit as well. Their EVs usually offer generous features at affordable prices. Chevy will have to up their game on pricing and financing to truly compete.
Meanwhile, the Equinox costs more than gas versions and $100/month over the Blazer EV. Chevy must address these issues or risk losing customers to rivals like Tesla known for superior value. Overall buyer experience beyond just the vehicle itself will become a deciding factor.
Practical Advice for Potential Buyers
Chevy is offering customers the attractive option to delay their first payment on new EVs by 120 days. However, 57.2% financing terms must be examined closely.
The Equinox EV has a “promo rate” of 5.99% for 72 months while the Blazer EV has 7.79%. But dealers can hike rates further by 1.5%. This could result in unnecessary interest costs exceeding $15,400 on a $50k loan at 9.29% APR.
It’s also important to confirm incentive eligibility. Although newer models qualify for the $7,500 tax credit, initial production Blazer and Equinox EVs may not.
GM is offering $7,500 “Ultium Bonus Cash” instead. Be sure to verify details with dealers on specific vehicles. Interest will accrue regardless of deferred payments. Lower rates are available but not with the 120 day option.
Carefully weighing alternatives can help save thousands in the long run.
Final Words
Chevy is making efforts to push EV sales through enticing payment programs. However, buyers must do their research to get the full picture and avoid unfavorable loan terms or missing out on savings.
Ask dealers clear questions, compare multiple EVs factoring in financing, and use any online tools to evaluate true costs. The Equinox EV faces competition at its higher initial prices versus gas versions.
With EVs from Tesla and Hyundai providing lower rates and tax credits, Chevy will need to improve overall value if they want to succeed in the growing electric vehicle market.
Be an informed consumer to get the best possible deal. You can keep visiting the Auto Freak website as we will keep you informed of the latest news, deals, and updates related to this promotion.
