$7500 Ally Loan question
Grab our Forum Feed

+ Reply to Thread
Page 1 of 2 1 2 LastLast
Results 1 to 10 of 16

Thread: $7500 Ally Loan question

  1. #1
    Join Date
    Nov 2010
    Posts
    328

    Default $7500 Ally Loan question

    Folks,
    I need some help understanding this. Ally is offering the following;

    Finance Alternatives through Ally
    Ally is providing 3 finance alternatives to assist dealers/customers when a customer purchases a Volt:
    • Option 1: "$7,500 Single Payment Program" which allows you to get the benefit of the tax credit at the time of purchase with a 0% interest loan.
    • Option 2: "Spike Payment Program" which allows you to get the benefit of the tax credit at the time of purchase while offering equal monthly payments with an increased payment of up to $7,500 (due in June of the year following purchase) with no deviation in the payment schedule.
    • Option 3: "Equal Monthly Payment Program" which offers equal monthly payments at standard rates up to 72 months.

    I need some clarification on what these mean....I interpret (guess) the following;
    Option 1 - they loan me 7500 at 0% interest (like a second loan?) and the payments are added to my normal car payment? Over the same term (length) of the car loan?
    Option 2 - ??? they loan me 7500 at 0% interest? and then no addition to my car payment till june of next year when I make one 7500 re-payment?
    Option 3 - ?? Same as option 1?

    As you can see, Im confused as to what these actually mean..

    Anyone know?

    Stilgar
    ally.jpeg

  2. #2
    Join Date
    Jul 2008
    Location
    San Diego
    Posts
    12,437

    Default

    Not enough info on Option One. Is this a separate loand? Do you pay this in installments? In one lump payment? If it's a lump when is it due?

    I think you understood Option Two correctly. Works if you can use the credit and want the float. Just don't ask for an extension if you need the money! LOL

    Option Three would seem not be be Option One. This Option seems to be that you borrow the money for the car and pay it off with the same interest rate as is applicable to the rest of the loan.

    As between Three and One or Two, free money always beats an interest rate.

    Speaking of which, what rate were you quoted for the loan?

  3. #3
    Join Date
    Nov 2010
    Location
    Grosse Pointe, (Detroit) Michigan
    Posts
    513

    Default

    What kind of arrangment does ALLY have for those of us who will pay cash for their Volt? If I am reading between the lines of the first post here, I would say that ALLY will give me $7,500 cash and I can repay them with $7,500 cash on or before next June, (2012). Am I correct?

  4. Remove Advertisements
    GM-Volt.com
    Advertisements

  5. Advertisement

  6. #4

    Default

    Quote Originally Posted by maynard View Post
    If I am reading between the lines of the first post here, I would say that ALLY will give me $7,500 cash and I can repay them with $7,500 cash on or before next June, (2012). Am I correct?
    You are correct sir!

    I got the $7500 "option 1", 0% interest, single-payment loan. It is due June 29, 2011 because I bought the car on 1/31/2010. As long as I make a single payment of $7500 by June 29, I pay no interest.

    I wanted to pay cash for most of the amount, then pay for the rest with the "option 1" $7500 0% interest loan and another loan for $5000 at their standard interest rate. My dealer said no-go on the $5,000 loan. He said I can only get the "option 1" $7500 0% interest loan if I pay cash for the remaining amount, which is what I did.

    When I bought the car, my dealer did not know how to access info on the "option 1" $7500 0% interest loan, so he had to overnight the paperwork to me a week after the sale when he got more of the details, so don't be surprised if your dealer is not aware of it.
    Last edited by honoreitiscom; 01-14-2011 at 01:36 PM.
    #469
    Personal best: 72.9 miles (One charge only, no Mountain Mode, no gas, no significant elevation change.)

  7. #5
    Join Date
    Apr 2010
    Location
    Central Long Island, NY
    Posts
    314

    Default

    honoritiscom,
    You got it?! Congrats!
    I forwarded my dealer e-mails from Angie and from Doug Weinhart before they would even consider calling Ally.
    To the other members here looking for the $7500, don't even bother calling Ally for details. The people answering the consumer phone lines will only talk about existing loans. The finance manager from the dealer must call them and be persistent! Ally, like GM, is huge and everybody doesn't know everything. Have them keep calling or have them call GMs dealer relations department.
    BTW: I wound up using my credit union for financing, so I'll have to wait 'til 2012 for my $$.

  8. #6

    Default

    Ally Bank will finance the Tax Credit Of 7500.00 @ 0% until approx mid 2012.......Giving you the time to file for the credit or simply finance the entire purchase price ...

  9. #7
    Join Date
    Jul 2010
    Location
    New Canaan, CT
    Posts
    34

    Default

    You have part of the info - let me try and fill in the gaps:

    Ally is offering 3 variations on financing terms as follows -

    Option 1: for customers paying cash.... Ally will provide a $7,500 loan with zero interest and one scheduled payment of $7,500 due in June of the year following your purchase. Thus, if you were lucky enough to take delivery in December 2010, your loan is due in June 2011. If you take delivery in January 2011, June 2011, or November 2011 (or any other month in 2011), your $7,500 zero interest loan is due in June 2012.

    Option 2: For customers who want to finance, but who want the benefit of the $7,500 tax credit upfront, Ally will finance your Volt with a specail term, providing for up to 60 months financing and essentially showing the $7,500 tax credit as a downpayment to reduce your loan balance. The trick is that you are not actually paying the $7,500 tax credit until June of the year following your purchase. Example: Your new Volt is $43,000, less the $7,500 tax credit, nets out to $36,500. You put cash down to cover sales tax and downpayment so that your monthly payment is $400 per month. You pay $400 per month and then in June the year following your purchase, you pay $400 PLUS the $7,500 you received back from the governement as a tax credit. Esentially, Ally is fronting you that money until the government pays.

    Option 3: for customers who want to finance and don't want to worry about the tax credit. Example: you buy your Volt for $43,000, and finance your purchase under normal terms. Your monthly payment is fixed for whatever term you decide. The year after your purchase, you claim your $7,500 tax credit and you keep that money when the government pays you.

    Ally has provided this information to dealers, but it can be confusing. Hope this helps!

  10. #8
    Join Date
    Jul 2010
    Location
    New Canaan, CT
    Posts
    34

    Default

    Quote Originally Posted by maynard View Post
    What kind of arrangment does ALLY have for those of us who will pay cash for their Volt? If I am reading between the lines of the first post here, I would say that ALLY will give me $7,500 cash and I can repay them with $7,500 cash on or before next June, (2012). Am I correct?
    You are reading between the lines correctly:

    Ally is offering 3 variations on financing terms - with Option 1 specifically for customers who plan to pay cash but would like to avoid laying out the $7,500 until Uncle Sam pays up....

    Option 1: for customers paying cash.... Ally will provide a $7,500 loan with zero interest and one scheduled payment of $7,500 due in June of the year following your purchase. Thus, if you were lucky enough to take delivery in December 2010, your loan is due in June 2011. If you take delivery in January 2011, June 2011, or November 2011 (or any other month in 2011), your $7,500 zero interest loan is due in June 2012.

    Hope this helps!

  11. #9
    Join Date
    Nov 2010
    Posts
    328

    Default

    That helped. Thanks!

    Stilgar

  12. Advertisement

  13. #10
    Join Date
    Jul 2010
    Location
    Atlanta GA
    Posts
    1,156

    Default

    Added to FAQ, thanks LeoK!
    2011 Volt #284, ordered 30-Jul-2010, built 30-Nov-2010, shipped 15-Dec-2010, delivery 22-Dec-2010, lease return 22-Dec-2013, Hidden Content
    - Hidden Content
    - Hidden Content
    - do yourself a favor and register at Hidden Content immediately so you can track your Volt's performance

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Quick Reply Quick Reply

  • Decrease Size
    Increase Size
  • Remove Text Formatting
  • Insert LinkInsert ImageInsert Video
  • Wrap [QUOTE] tags around selected text

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts