It's good news that only a relative handful of consumers -- two percent or less -- opted for the six-year, 0-percent financing incentive offered by General Motors and Ford Motor Co. last month.
Judging by GM's big finish at the end of September, the program pulled a lot of buyers into dealer showrooms, which is what it was supposed to do. But the thought of tens of thousands of additional buyers getting locked into 72-month loans must have been enough to give any serious financial exec a good case of the heebie-jeebies.
It's bad enough that in a normal month about 20 percent of GM retail loans are for six years. Think about it. Buyers who go for 72-month paper aren't likely to have enough equity in their vehicles for a trade-in until very near the end of the decade.
That would be counterproductive and counterintuitive to any sales exec. It also means having to devise another clever program to help those buyers get right side up in a couple of years.
Fortunately, you needed to have the very best credit rating to qualify for the 0-percent, 72-month loans, so that those who qualified probably were savvy enough to know that six years is a long time to pay on a car loan.
But there could be trouble.
Just wait. Some assistant attorney general somewhere will say that amounts to bait-and-switch.
Shows how much he knows, eh?