What percentage of all new cars financed in the U. S. in (a recent
year) were paid for with zero percent subvented financings from the
auto manufacturers' finance subsidiaries?

I expect an answer in percentage and dollar terms and bullet-proof
sources. The data cannot be more than 3 years old, but I would prefer
a recent 12-month period.

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Request for Question Clarification by bobbie7-ga on 21 Sep 2006 20:02 PDT

Rainydayman,

All I could find in the percentage of all new auto sales in 2004 that
were made with zero percent financing.

Would this figure work for you?

Bobbie7

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Clarification of Question by rainydayman-ga on 22 Sep 2006 09:12 PDT

Yes, I will accept 2004 data as long as it is precise and the source(s) is solid.

Hello Rainydayman,

Thank you for your positive response to my clarification.

Zero-percent financing

Zero-percent financing is another name for providing interest-free
loans (e.g., a borrower pays no interest).
Auto manufacturers use zero-percent financing to boost auto sales.
http://www.secumd.org/html/secu/lower.htm?page=education.fa_auto_glossary


According to Power Information Network approximately 7 percent of all
new car sales in 2004 were made with interest-free loans.

Excerpt:

 ?Consumer shouldn't assume they'll receive a zero percent loan on
their new car. Approximately 7 percent of all new car sales in 2004
were made with interest-free loans according to the Power Information
Network. And national reports suggest that auto makers may be less
likely to offer zero percent deals in 2005 as rates rise.?

Zero Percent Auto Loans Are Rare Today
http://www.theallineed.com/money/05022002.htm



About Power Information Network (PIN) 
http://www.powerinfonet.com/

?PIN's automotive solutions are based on the collection and analysis
of daily new- and used-vehicle retail transaction information from
more than 10,000 automotive dealership franchises in North America.?

Power Information Networkis  a division of J.D. Power and Associates

?PIN collects extensive data on each sales transaction including
pricing, cost, profit, financing, leasing, trade-in, and general
customer information.  Over 250 different elements are captured,
enabling PIN products to offer a unique picture of what is happening
in the marketplace.?

Some of the measures that are available:

Pricing / Cost Measures
? Vehicle Price
? Vehicle Cost
? Customer Cash Rebate / Penetration
? Service Contract Premium / Penetration
? Insurance Premium / Penetration

Financing / Leasing Measures
? Buy Rate
? APR/IRR
? Monthly Payment
? Amount Financed / Net Cap
? Lease Residual

http://www.powerinfonet.com/pinmeasures.asp


Search terms:
Zero-percent financings
zero percent financing
no interest loans
cars OR vehicles 2004 2005 2006-09-22 
loan market
interest free loans


I hope the information provided is helpful!

Best regards,
Bobbie7