Chrysler calling 2006 models "used" to unload them
When even deep discounts aren't getting the job done, sometimes you've got to bend the rules. Normally, a Chrysler dealer must use a car as a loaner for three months before designating it a used car. Still wondering what to do with a "glut" of 2006 vehicles in June of 2007, Chrysler has told dealers if they use a car as a loaner for just one day, they can consider it a used car and move it off the new car lot. Dealers also get an additional $2,000 discount as an incentive to use the program.
Instead of making fewer cars in 2006, Chrysler built more than dealers wanted and simply parked them around Detroit. Incentives helped move some, but the incentive program was to end May 31 of this year and dealers still had more 2006 cars sitting on lots than they wanted. Chrysler decided it wanted to finish strongly, so it eased the loaner requirements, a move dealers had been asking for. Chrysler still counts the cars as retail sales (even though they're just being moved to the used car lot), but the cars won't distract buyers who are looking at Chrysler's 2007 product. At one dealer in New Mexico, a 2006 Dodge Ram went from $33,000 to $26,000 in one day. An '06 Durango could be reduced by $11,500 after one day. Could be time to run a daily patrol around your local Chrysler dealership...
[Source: Detroit News]
Reader Comments (Page 1 of 3)
Adam 11:27AM (6/20/2007)
My friend Scott got a new Dodge Dakota for $11,500. I didn't believe him, but it's true. To bad they make a crappy product.
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FermitTheKrog 12:58PM (6/20/2007)
I got my son a happy meal today at McDonalds and they were having trouble trying to stuff the PT Cruiser into his happy meal box.
Andy 3:19PM (6/20/2007)
I diagree. I think the Dakota makes a better pickup than the Chevy Colorado or Ford Ranger. The loss of the V-8 option took away any advantage over the Japanese. Chrysler does have some interesting products. The Crossfire, Charger, 300, and Magnum aren't all that shabby. I'd consider a PT Cruiser.
Don 4:00PM (6/20/2007)
a) the Dakota isn't "crappy"
and
b) for $11,500 new it's a steal
Reuben 11:35AM (6/20/2007)
How about a petition to have chevy do this with the vette.
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Tim UF 11:35AM (6/20/2007)
I'd been seeing new "old stock" magnum sxt's and charger sxt's at my local dealers (2005 and 2006 models) being sold at tremendous discounts as well.
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Todd 11:40AM (6/20/2007)
Even with these huge discounts how much will you lose off the car the second you drive it off the lot?
I still wish they made the Razor and that M80 truck. Demon just isn't the same.
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Smarmy Joe 11:53AM (6/20/2007)
I can't help but giggle at this sort of thing. Everyone's always so GM/Ford vs. Toyota on this blog that we forget what happens when another major manufacturer makes far more horrible mistakes and miscalculations. Byebye, Chrysler.
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rrr 11:59AM (6/20/2007)
#5 i do not know why but many car sector analysts still say that Chrysler is in better shape than GM or ford.
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Vinny 12:12PM (6/20/2007)
Congrat's all you Chrysler owners! Your depreciation has just been kicked into turbo and is leading the pack!
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geo.stewart 12:33PM (6/20/2007)
technically, by selling them at a used car rate instead of exorbitant discounts, chrysler helped current owners...
Jim in Tampa 1:09PM (6/20/2007)
We just bought a 2007 Pacifica this past weekend. We didn't buy it as an "investment". We bought the car because we liked it and it served our purpose.
mj 12:21PM (6/20/2007)
Let's remember where the blame lies: Daimler executives thought it was a good idea to completely over produce 2006 Chrysler models and flood the dealerships so that they could record profits for one quarter. What a surprise that Daimler sold Chrysler down the river afterwards.
How much Daimler executives made in this little deal is anyone's guess.
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Kumar 3:28PM (6/20/2007)
That's odd...
I thought it was becuase it cost them the same if they built the things versus paying the union workers for doing nothing while the market was in a downturn.
Turns out they should have done the latter and just eaten the losses instead of causing the end of DC. I don't really see any good coming of this for unions, which is probably why they struck first with the concession proposal that AB posted a story on recently
jw 12:26PM (6/20/2007)
market share!!! these guys at chrysler will do anything to keep there jobs..so now the dealers have a glut of new/used chryslers to sell..are they telling customers that they are really new cars !! lawyers will be all over this one!! now the dealers can take off the monroney stickers and try to high gross the public..the games chrysler plays!! whats next????
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Rick Lyon 12:37PM (6/20/2007)
This is the same company that views themselves as a luxury car maker prices their cars mids 20s and up? haha Make a good car, make it last, then try and rob your customers.
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VenGent 12:42PM (6/20/2007)
Let's see, I need a car but what would I want from Chrysler. Oh that's right, its all crap. And trust me I've rented them all from Enterprise. The worst was the Caliber. Unbelievably horrible vehicle.
Desperation is alive and well.
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kevin werry 12:54PM (6/20/2007)
don't forget the crap from ford and gm
VenGent 1:03PM (6/20/2007)
Actually, Ford has the Fusion, and Lincoln has a few that are respectable. GM has Caddy and some Saturns that are on par. After seeing my friends Civic in the shop 3x and my clients MDX in the shop, and reading about Toyota's fall with the Tundra, they all have their crap now. Nissan has its Altima engine, too. The playing field is leveling.
Aaron 12:39PM (6/20/2007)
lmao according to the articleon detnews this affects 9600 cars - GOOD WORK!
Special thanks to the german Joe Eberhardt who oversaw the overproduction before he was demoted from vp to manager of a mercedes dealer..
lol..
They did this the last couple years for the crossifre too (the car daimler alotted money for to build a successor, yet felt no need to make room for a small car).
tards.
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