Car sales in the U.S. flat-out suck right now, and both domestic and Japanese automakers are feeling the pinch. Chrysler posted a 13.2% decline in its Daily Sales Rate last month while offering 0% financing, so the Auburn Hills-based automaker has little choice but to continue offering free loans in an effort to stop the bleeding. Current deals include five years at 0% for 2008 models and six years for leftover 2007 models. Chrysler is also dealing with folks with less than perfect credit, which is a risky move with credit restrictions so tight right now.Beyond money for nothing, Chrysler is also looking into further production cuts to keep dealer inventory in check. It's also cutting labor costs by offering buyouts to workers to shed its army of industrial storm troopers by up to 10,000. Times are tough right now in the auto industry, but if you're in the market to buy a new car, 0% appears to be making a comeback
[Source: Automotive News - subs. req'd]
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Reader Comments (Page 1 of 1)
Avinash machado @ Apr 2nd 2008 8:27AM
Chrysler seems to be on death row.
Menice @ Apr 2nd 2008 8:54AM
thinking the same thing.
you know i used to route, hope for the best, even owned a Chrysler 4yrs ago,(total POS) but when its constant wrong move, after constant wrong move, sooner of later you turn your back in exasperation, wave a hand and say good riddens.
With Mr.Home Destroyer and Cerebrus it's clear the concern is making 'money now'. which means cutting back and in this market there is no way to cut back, and improve quality with the wounds that they have and the competition that is burying them
i wish a money man with a passion, not a burning greed, would step in and save there ass, fire the powers that be, and turn the company around.
MajorGeek @ Apr 2nd 2008 8:39AM
0% is not at all rare anyhow. Car buyers think these are all scams because half the time, it is a rebate OR 0% which often can be used by the dealer to lower trade or raise price they could sell you the car for. Also, usually to get 0% interest you need perfect credit. Many people miss out right there.
Uncle Bo @ Apr 2nd 2008 11:10AM
Historically, the acceptance rate of 0% financing is 10-15%. When the finance divisions reject 85-90% of the applicants, the promotion becomes more a marketing ploy than anything.
Loosening the credit requirements will help more people take advantage of the offer. They don't have to give away money like Ford has done in the past with their loans and leases. Just loosen the purse strings a little bit. If lenders aren't willing to loan money, nobody's gonna buy a damned thing anyway.
SPG @ Apr 2nd 2008 11:21AM
I trust 0% financing as much as I do retailers in around December.
BigWill @ Apr 3rd 2008 12:27AM
Is that 0% financing being offered to Ghosn by Cerebus to take Chrysler off their hands?