Chrysler LLC, the US automaker that stopped offering leases today, will extend six-year loans and $2,000 cash rebates on many of its models to trim buyers' monthly payments.
Chrysler, the third-largest US automaker, is using the incentives to help stem further US sales declines from the loss of leasing that it says accounts for 20 per cent of its volume. US sales for the Auburn Hills, Michigan-based automaker fell 23 per cent through July.
“We are leveraging the move from leasing to retail purchases to offer our customers the best deals of the year and make buying as affordable as renting,” President Jim Press said today in a statement.
For example, a the buyer of a 2008 Jeep Grand Cherokee Laredo sport-utility vehicle would be able to tap a 72-month, no-interest loan with a monthly payment of $368, Chrysler said. That same SUV had a lease payment of about $400 a month for three years, the automaker said.
Chrysler also may let employees offer their discount price for new vehicles to outsiders through September 30, Chief Executive Officer Robert Nardelli said today in a letter to workers.
The new incentives include $2,000 in cash rebates to customers who want to lease vehicles through an independent lender, Chrysler said.
Chrysler announced July 25 that its financial arm would exit the leasing business as of today, saying borrowing costs had become unaffordable.
Meanwhile, Chrysler is “aggressively” working on new models and alliances with other automakers and may introduce new vehicles next year, Chief Executive Officer Robert Nardelli said.
“If we are successful with some of our discussions relative to alliances or platforms, you very well could see some new platforms, some new vehicles out next year,'' Nardelli said in an interview today at a dealership opening in Sterling Heights, Michigan.
