You have to understand how financing works for manufacturers.If only! Fed rate is above that, so they'd be taking a financial hit immediately. But I agree, there should be some consideration for Day 1 supporters beyond "pre-order pricing", which is starting to sound like it may hold for a while. I know demand is through the roof, but I suspect there are a lot of folks like me that see it and love it, but the reality of ownership costs brings them back to earth. Man, if only it were $15-20,000 less, I've be forever in love. Maybe I just need to orbit for a couple of years and pick one up on the used market. Even the red hot new Bronco eventually became just another used car, complete with depreciation. I think once you get a Grenny, new or used, it'll go the distance. Used may help the entry point and allow the love affair to start.
First off, their cost is prime. Not consumer retail.
Secondly, they have profit built into the vehicle.
So they can forgo some profit, to essentially buy down the interest rate on your loan. That’s how all the big auto manufacturers are able to offer below market rate financing packages on their new sales.
It is a cost shift commonly used to keep selling a lot of cars, but not give the UAW big bonuses.
I won’t bother anybody with the math, but essentially you can back out, the expected rate of return on the loan, using basic finance formulas.
Expect to see 2.99% spreading across popular lines to keep volume up.