Chrysler offering millions to dealers and consumers to move 2006 inventory

In this day and age it's a sin to still have 2006 models sitting on your dealer lot. Unfortunately for dealers under The Chrysler Group umbrella, their lots are teaming with '06 metal. The Detroit News quotes analyst John Casesa of Casesa Shapiro LLC as saying, "To have a third of your inventory in old models when you're two months into the (2007) model year, that's heavy." Heavy indeed, John.

Chrysler has put into effect two campaigns that it hopes will start clearing out the lots of last year's inventory. The first is aimed at the dealers themselves and involves about $500 million in dealer cash incentives to sell 2006 models. Dealers will earn an additional $2,500 to $7,000 for every 2006 model they sell. The easiest to sell models like the Dodge Charger and Chrysler 300 will earn dealers $2,500 unit per unit, while the tough sell trucks and SUVs like the Ram pickup and Durango will fetch a hard-earned $7,000 per unit. Consumers will be happy to know that on average Chrysler passes 85% of that money on to consumers.

In addition to lower transaction prices from the dealer cash Chrysler's shelling out, more than 3 million consumers are receiving coupons worth $1,000 that can be used towards the purchase of most 2006 and 2007 models. These coupons can be added on top of any existing incentive offers, as well. The only vehicles excluded are the 2007 Chrysler Sebring sedan; Dodge Viper sports car, Nitro, and Sprinter van; Jeep Wrangler, Patriot, and 2006/07 Grand Cherokee SRT-8.

The coupon mailing is the largest ever sent about Chrysler, and while the dealer cash is not being advertised to the public, you heard it here that these double discounts are in effect and now might be the best time to pick up that 300C you've had your eye on.

[Source: The Detroit News]

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