Filed under: Car Buying, SUVs, Chrysler, LLC., Dodge, Jeep, Earnings/Financials
Chrysler offering even more incentives to close out July
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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Reader Comments (Page 1 of 2)
azzo45 5:05PM (7/25/2008)
Come & get it... your 2008__________ Make a deal!!
Before we won't let you LEASE it!!!
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ddrhero 5:27PM (7/25/2008)
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.
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Brent 6:04PM (7/25/2008)
Obama favors an auto industry more than McCain does....
Roanoke 6:15PM (7/25/2008)
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.
MBS 8:37PM (7/25/2008)
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).
Seoultrain 5:43PM (7/25/2008)
Checking the websites, it seems like you have to choose between the following:
1. 0% for 72 months
2. $2.99 gas card plus $2,000 gas card
3. $3,000 rebate
So to get the 0%, you pay full retail. Might still be worth it, but do you really want to be making payments on that SUV in 6 years? You'll probably be upside down until 4 and a half years in. Be prepared with lube.
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DKB_SATX 6:08PM (7/25/2008)
Well, the 0% for 72 months would be on whatever price you negotiate, you just won't get a rebate on top of the price you negotiate.
Some dealers will want to "include" the rebate into a negotiated price (e.g. if there's a $2000 rebate and you negotiate a price $2k below their ask, they'll try to say that's the price "including all rebates/mfg. cash" so be sure it's clear and written in any offer you make whether or not the rebates are included.)
It looks like the $3k rebate might be the way to go... get $3k off the price of the car, since comparing 0% to 3.9% for 72 months (assuming a $30k note) only saves about $100 more than you'd make if you put the $3k into ING for 72 months. If you can only get 5.9% as the rate, you eventually save $2k more in interest than you'd get on the $3k at ING. You're still probably better off buying an efficient vehicle that Chrysler doesn't sell.
CompWizrd 5:58PM (7/25/2008)
And if you live in Canada, you can expect 12.29% APR on leases, and 8.83% on financing.
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Brent 6:09PM (7/25/2008)
Didn't they stop leasing at the beginning of this month in Canada?
Seminole 6:30PM (7/25/2008)
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.
CompWizrd 6:34PM (7/25/2008)
Their web guys are bloody slow, took them a few days to get leasing pricing up on the website.
At least if you get employee discounts, you can take about 1/3rd of MRSP off, to get your final price.
They put $5000 off on an Avenger R/T this month, along with similar discounts on the Town & Country, and the Liberty.. that's on top of the normal 10% or so off MRSP, and on top of any other heavy discounting.
AKJeeper 6:19PM (7/25/2008)
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.
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Martman 6:53PM (7/25/2008)
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
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mroverlord 7:17PM (7/25/2008)
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.
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kory kickul 7:34PM (7/25/2008)
the reason leasing will not be available is cause they arent gonna be here in 3 years anyway. Chrysler doesnt want the vehicles on dealer lots now. they sure as hell dont want to take another beating when its turned in off lease and they lose another 5 grand. Research and development and design. ask toyota............
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Nightcrawler 9:12PM (7/25/2008)
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%)
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AngeloD 9:26PM (7/25/2008)
""Research and development and design. ask toyota............""
Kool Aid anyone?
Yes, ask Toyota all about their high quality, well designed:
-Tundra with the flexibile-flyer frames, collapsing tailgate, engine cam recall;
-Tacomas that they bought back due to the frames rusting out in less than 5 years;
-FJ Crusiers with the front structural body panel cracking;
Ask those quality mavens at Toyota about:
-the engine sludge class actions suits Toyota has lost;
-the Patent infringement suits they have lost over thier theft of the parallel hybrid design used in the Prius;
Yes, ask the folks at Toyota why 60% of the vehicles they sell in N. America are now on Consumer Reports "not recommended" list.
Sure thing.
Glug glug...mmmmm....cherry flavor...
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Quicksilver 1:59AM (7/26/2008)
"Actual" and "perceived" quality are two different things. Toyota still has a good reputation with consumers and people will continue to buy their products, despite the "minor" problems they have.
I have an 05 Ram in the driveway that hasn't given me any trouble, but I don't have any reason to run down and buy anything Chrysler currently offers. Their current styling doesn't appeal to me and I worry about their future. If they don't change course soon they won't have a future.
tekdemon 1:38PM (7/28/2008)
Funny thing is that Toyotas are still more reliable even with all those problems.
Seeing as how they solved the rusting frame problem by buying back the trucks at 1.5x KBB value for excellent condition-regardless of the actual condition of the truck-I'd say that other manufacturers don't just have to learn from Toyota R&D but also from Toyota's willingness to go all the way to keep their customers even if it means a massive writeoff. You could have had a Tacoma with 300,000 miles on it with a failing transmission and they would have paid you for it as if it was in mint condition, and then added another 50% on top of that. And mind you this wasn't KBB trade-in value, we're talking about 150% of KBB retail value!
And seriously, many of these problems only affected a very small number of Toyotas. Especially the engine sludging issue-if you look at the statistics Chryslers are actually much more prone to engine sludging than Toyotas have ever been, but it's just made a much bigger deal because Toyotas should be bulletproof. Quite frankly I'm of the opinion that the vast majority of engine sludging cases are due to craptastic maintainence-there's idiots out there who go 60K without an oil change.
Of the 2 Camrys we've owned for 5 and 6 years respectively, the most serious problem has been a brake light switch that needed to be adjusted after moving to a much colder climate. Other than that one brake light bulb had to be replaced after 5 years (which cost about $2).
The newer Toyotas have more rattles than the ones from the 90's and early 00's, but Toyota is still far more reliable than the VAST majority of other brands.
And while 60% of their cars may not be on the recommended list, which manufacturers have higher recommended levels?
Billy C. 9:52PM (7/25/2008)
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.
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