Today's Consumer: News you can use

ZERO-PERCENT FINANCING RETURNS

The car wars are heating up again. On Friday, General Motors launched two incentive programs -- including a return of the popular zero-percent financing that supercharged vehicle sales after September's terror attacks.

Ford quickly matched GM's no-interest deal and said it would offer up to $2,500 rebates on most 2002 cars, trucks and sport-utility vehicles until April 8.

GM will offer $2,002 cash back, or cut-rate financing, on most 2002 Chevrolet, Pontiac, GMC, Buick and Oldsmobile cars and trucks through March. Interest rates vary from zero percent on 36-month loans, to 2.9 percent for 48 months and 3.9 percent for five-year loans. Rebates on selected new passenger cars, light trucks and sport-utility vehicles will be $1,500. Those models include the 2002 Chevy Trailblazer, Silverado Extended Cab and Crew Cab, Suburban and Tahoe, GMC Envoy, Sierra Extended Cab and Crew Cab, Yukon XL models, Oldsmobile Bravada and Pontiac Aztek, Cadillac, Saturn, SAAB and Hummer.

The Chevrolet Corvette sports car and 2003 model cars and trucks are not part of the incentive program.

The GM offer of a $2,002 rebate and 5.9 percent financing on selected vehicles had been scheduled to expire on Thursday.

On Monday, Ford is expected to announce the details of its plans to improve its current incentives of $1,000 to $2,500 cash back or zero-interest financing on three-year loans. That offer is due to expire Tuesday.

Meanwhile, a second GM program allows motorists driving leased vehicles to return them between May 1 and September without penalty, if they re-lease or buy a new GM model.

Ford moved to match GM's lease incentive, offering loyalty bonuses of up to $1,500 on most 2002 Ford vehicles for returning lease customers in addition to current rebates. Ford also is offering lease coupons for $1,000 rebates on cars and $1,500 rebates on trucks and SUVs. The new Thunderbird roadster is not part of that program.

GM -- the world's No. 1 automaker -- began offering zero-interest financing last fall to get customers back in showrooms after Sept. 11. Rival car companies matched the deals, jumpstarting sales industry-wide.

The escalating customer incentives will put pressure on DaimlerChrysler's Chrysler Group to match the programs offered by GM and Ford. Chrysler spokesman Marc Henretta told UPI that Chrysler still had rebates and zero-interest financing on 36-month loans for Jeep Grand Cherokees, except the sports model; the Dodge Durango; and Dodge and Chrysler minivans, except e-Series models. Chrysler also is offering a $1,000 rebate on the PT Cruiser in Northeast and Midwest markets, reflecting the automakers' preference for targeted geographic incentives.

MORTGAGE RATES DROP

Freddie Mac says long-term mortgage rates slipped to their lowest level since November during the latest reporting week.

Freddie Mac -- which adjusts mortgage rates according to prices that mortgage-backed securities bring in the secondary bond market -- said the average rate on the 30-year loan to homebuyers eased to 6.80 percent from 6.81 percent last week and from the 6.86 percent level lenders were asking two weeks ago. The latest rate of the 30-year loan was its lowest since the week ending Nov. 23, 2001, when lenders were offering the loan at 6.75 percent.

A year ago, the 30-year average was 7.03 percent, Freddie Mac noted.

Meanwhile, the rate on the 15-year loan remained at 6.28 percent for the second week, down from the 6.35 percent level lenders were asking two weeks earlier. A year ago, the 15-year loan averaged 6.58 percent.

The group said the rate on the 1-year adjustable mortgage slipped to its lowest level since the week ending April 1, 1994. The rates eased to 4.94 percent from 4.96 percent last week and from the 4.98 percent level lenders were asking two weeks earlier. This time last year, the 1-year ARM averaged 6.39 percent.

The rates do not include add-on fees known as points, which averaged 0.7 percent on all the loans.

Mortgage rates climbed to a record 18.66 percent in October 1981 but have been hovering around the key 7 percent level for the past several months.

The Federal Home Loan Mortgage Corporation -- which has been tracking rates since 1971 -- surveys 125 banks, savings and loans and mortgage lenders, to calculate rates. Freddie Mac is a corporation chartered by Congress that buys mortgages from lenders and packages them into securities for investors.