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The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

[Source: Automotive News - sub. req'd]


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  • 21 Comments
      • 6 Years Ago
      HURF A DERF SELL A TRUCK HURF A DERF

      It's the automotive equivalent of "Trade you my broccoli for your juice box" In my day, to get people to buy cars they MADE QUALITY CARS NOT FAILBOXES THAT FALL APART IN 5 YEARS! Chrysler's got nothing to worry about. McCaine's going to bail them out and they'll never learn that Quality=sales.
        • 6 Years Ago
        Roanoke: Dude, since obama is supposed to be the canidate for "the little guy" how could he walk away from the american car makers? How many jobs do they provide?

        Management there are not the ones who will suffer if these companies go belly up, yet they are the ones to blame for all their problems (well UAW needs to take a fair share of the blame too obviously).
        • 6 Years Ago
        Brent, are you insane? Just because he wrote a letter to the UAW "pledging" his support... just to get their votes? C'mon. Get real. Politicians say things all the time to get votes. He's flopped on the auto industry more than a few times and when push comes to shove, I'll bet he'd walk away from the american makes. Hopefully he/we don't get the opportunity. And, Obama wants to redistribute my hard earned money to the people that don't want to work hard (or are "less fortunate").

        ...Sorry, I hate politics on this blog, but really.
        • 6 Years Ago
        Obama favors an auto industry more than McCain does....
      • 6 Years Ago
      Seminole

      Were just bitter you don't keep them!!!
      By the way it is 90 degrees here in western canada and my igloo is air conditioned
      • 6 Years Ago
      Jeremy Korzeniewski,

      You may want to do some research before making a statement, such as:

      "In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1."

      You can lease vehicles through other banks for very similar rates on most models still, and Chrysler will still offer Lease rebates for those customers. So, in no way is it COMPLETELY cutting it out, they just don't want to be in the same boat as Ford with a 2 billion dollar write down on residuals over 3 months....It's called looking ahead and seeing the light. Leasing in this country has ruined the industry, just look at GM's moronic $200 per month leases on $22,000 vehicles.
      Kare
      • 6 Years Ago
      My girlfriend has been approached by cheap to unload her 2006 Commander Limited now because the lease program with Chrysler is being eliminated. While under the pretense that the residual on gas guzzling SUVs is so bad, mostly because they're not appealing to consumers in our horrific economic times. So they sell a Chrysler brand to consumer via the financing route and offer the 0% apr for 72 months. I'm not a mathematician by any means but common sense tells me that the consumer will not benefit from this deal. If residuals are so bad after 36 months, how can they be better in another 36 months. If dealers are having problems moving the SUVS then why would a dealer offer top dollar to a consumer with a trade-in. Then there's the warranty factor and after it expires you have to either pay for repairs out of pocket or buy an extended warranty. All factors that are not presented with their nice offer of 0%, they're playing on the tunnel vision syndrome consumers have now during our tough times by waving a big ZERO in their faces. Plus, Jeep went totally nuts just 3 years ago with expanding their fleet of SUVS and now all of those leases are coming to the end. A total nightmare is coming around the bend because any consumer with an ounce of common sense, will just walk into their dealer, slam the keys down and walk out. And I won't be surprised if that happens once people begin to realize that Chrysler is just looking to their customers to bail them out of bad strategic planning on their part.
      • 6 Years Ago
      If I was considering a Chrysler product, I'd call their bluff and wait until the current deal expires at the end of the month. I'd say whatever they come up with next month will have to be even better. Or if it's not, then come September they'll really be in a hole with 2008s sharing the lot with 2009s, and then they'll have no choice but the sweeten the offer even more.

      How about -2% for 72 months? (What I really meant is rebates in addition to the 0%)
      • 6 Years Ago
      I'm just sick of seeing Chrysler being run to the ground. Cerebus really needs to get in gear and do something, quick! Dump your current line of passenger cars, fire your designers (they obviously came from the same camp that designed the Aztec), hire fresh new aspiring designers, build some appealing cars with awesome build quality and materials, quit selling to the rental fleets (that's all Chryslers ever seem to be these days). You might actually survive if you take these measures.

      Then again, I might be asking for too much...

      Perhaps we should just wish for this company to die before they embarrass themselves even more than they already have.

      Kare
      • 6 Years Ago
      My girlfriend has been approached by JEEP (Freudian slip) to unload her 2006 Commander Limited now because the lease program with Chrysler is being eliminated. While under the pretense that the residual on gas guzzling SUVs is so bad, mostly because they're not appealing to consumers in our horrific economic times. So they sell a Chrysler brand to consumer via the financing route and offer the 0% apr for 72 months. I'm not a mathematician by any means but common sense tells me that the consumer will not benefit from this deal. If residuals are so bad after 36 months, how can they be better in another 36 months. If dealers are having problems moving the SUVS then why would a dealer offer top dollar to a consumer with a trade-in. Then there's the warranty factor and after it expires you have to either pay for repairs out of pocket or buy an extended warranty. All factors that are not presented with their nice offer of 0%, they're playing on the tunnel vision syndrome consumers have now during our tough times by waving a big ZERO in their faces. Plus, Jeep went totally nuts just 3 years ago with expanding their fleet of SUVS and now all of those leases are coming to the end. A total nightmare is coming around the bend because any consumer with an ounce of common sense, will just walk into their dealer, slam the keys down and walk out. And I won't be surprised if that happens once people begin to realize that Chrysler is just looking to their customers to bail them out of bad strategic planning on their part.
      • 6 Years Ago
      My wife has a 2005 Tacoma with 50,000 miles and no problems. She hauls our 5000 pound tractor and concrete and all kinds of stuff. My friend has a 2005 Dakota that has had "everything possible" go wrong with it. Luckily he has had it fixed under warranty, but he agrees it is a piece of S.
      • 6 Years Ago
      And if you live in Canada, you can expect 12.29% APR on leases, and 8.83% on financing.
        • 6 Years Ago
        Sheeeeeet....

        On top of paying thousands more for the same exact car, ridiculous taxes, and having to deal with living in igloos Canadians have to pay 8.83%!! No wonder you stick to dog sleds! I feel bad for you guys.





        * I'm just playing with you Canadians. I'm just bitter you send us all the Quebecians during winter time.
      • 6 Years Ago
      For people who want C to dump their line up: They are trying...it just can't be done overnight. The only serious way they can fix the problem is to develop a whole new car...which they are doing, and it takes time.
      • 6 Years Ago
      Styling is important, yet Chrysler has the ugliest line of vehicles on the market, from compact to Suv. Not only exterior styling, but the interior as well....all cheap feeling FLAT surfaces.
      • 6 Years Ago
      Come & get it... your 2008__________ Make a deal!!

      Before we won't let you LEASE it!!!
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