Chrysler turns to 0% financing as Employee Pricing ends
Chrysler summer-long Employee Pricing incentive ends today and is being replaced by a good old fashion Zero Percent Financing deal. The new deal applies to all 2006 models, which means Chrysler is eager to reduce the inventory of its dealers to make room for a flood of new products it plans on introducing this year, including the Chrysler Sebring and Aspen that were given prices today by the company.
Chrysler now falls in line with Ford that announced last week it was going back to zero percent financing for six years as an incentive to lure customers back into the showroom. While Ford is willing to offer the deal to people with borderline credit, Chrysler is only offering its promotion to well qualified customers. For its part, GM is offering anywhere from $500 to $1,500 cash back on most of its models right now.
Both incentive deals by Ford and GM end after the upcoming Labor Day weekend, while Chrysler new zero percent financing deal will go on until Sept. 30th.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
Denis 5:10PM (8/30/2006)
See the results! This just goes to show you that the Automobile Franchise Dealership concept is finished.
Its gone -- Dealers could care less above selling NEW cars -- There front line is all USED vehicles.
The Manufacture are having problem getting vehicles out. The 21st century will see the arrival of the Manufactures "LICENSE."
Factory reps. working out-of the retail store and owning the inventory free and clear. You heard of JIT.
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AnonymousInsights 6:31PM (8/30/2006)
It doesn't really matter what the Big 2.5 offer me, I don't want anything they have. It's sad to say but these companies are down and are not going to get up. It's over!
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Leroy 6:29PM (8/30/2006)
Denis,
The Japanese Big 3 aren't having problems like the American Big 3, so I wouldn't jump to conclusions just yet.
Dealers care about selling new cars -that's what gets people in the door. The money has been on the used car side for years.
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Miyoshi 9:33PM (8/30/2006)
Dr. Z better build some larger storage lots for Chrysler dealerships. There's bound to be alot of unsold Sebrings and Aspens sitting around for 2007, especially with reduced incentives.
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jfrolang 9:48PM (8/30/2006)
I don't see Honda or Toyota offering employee discounts, cash-back or 0% financing. Just goes to show, build a better product and people will pay more for it.
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Michael Karesh 10:13PM (8/30/2006)
The Employee Pricing did nothing for them this year based on the vehicles people research on my site. On the other hand, 0% financing hasn't done much for GM and Ford, either. These guys are running out of tricks. Might be time to rely on product.
To find out how much 0% saves you, price a vehicle against itself, then on the results page finance one at 0% and the other at the market rate (6% for excellent credit, more for not).
http://www.truedelta.com/prices.php
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Michael Karesh 10:16PM (8/30/2006)
By the way, the Employee Pricing doesn't end till midnight on the 31st, which is tomorrow night. And 0% could be combined with it. I think the maximum term of the loan at this rate was just 36 months, though. Will probably be 72 come Friday.
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Seth 1:13AM (8/31/2006)
Wait? You mean i can't pay what the underpaid mexican workers that build these second rate cars pay anymore? All is lost!
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carnut 12:59PM (8/31/2006)
Funny, as Honda and Toyota around here are offering 1.9 or cash back on certain models.
Honda is touting Mr. Opportunity again which means clearance sale.
Granted, both car lines are overrated - Honda still can't build an automatic transmission and Toyota can't build a sludge free engine. Not to mention both make some BORING cars.
The only Japaneese brands that are even appealing are Nissan/Infiniti and Mazda. At least those cars look great and are reliable.
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tl 12:30PM (9/01/2006)
So many people have overrated Honda's and Toyota's to the point that American brands have to offer more to sell their cars. Toyota and Honda in my opinion make some of the most boring cars on the market. Toyota has recalled almost all of its lineup this year and honda has come out with some of the UGLIEST designs yet (new CRV and MDX) but people still buy their cars faster than they can make them. I dont get it, I wont be joining that ignorant bandwagon!!
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Terry 7:54PM (9/12/2006)
Chrysler seems positive still that they'll be able to clear their dealership lots of 2006 cars and trucks for 2007 models. I for one also believe that its in the product and not in the incentives that ultimately decides the sales results
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Joe 2:29AM (9/20/2006)
There seems to be no end to this incentive wars. Experts warns though that buyers can get so distracted by the lure of zero financing offers that they actually forget to negotiate on the price of the car. Car buying experts suggest that you agree on the price of the car before you even discuss financing. So gotta be careful when biting these automakers' seemingly attractive offer.
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