Chrysler Announces 0% Financing - But Will It Matter?
Thanks to a loan from the government, to the tune of $1.5 Billion, Chrysler Financial is now offering 0% financing (for up to 60 months) on 11 Chrysler, Dodge and Jeep vehicles. Included in the program are Chrysler Town & Country, 300 and 300C, Jeep Grand Cherokee, Commander, Wrangler, Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty. Customers need not have perfect credit to get the 0% rate either, with the minimum credit score being 620, instead of the 700+ that had been the requirement.
Of course, 0% financing does nothing to help consumers who are still afraid of losing their jobs, homes or both. Even with Toyota's [annoying] "Saved By Zero" campaign, sales still dropped nearly 37% in December. So it is clear that cheap financing alone will not be enough to save Chrysler.
That uncertainty in the future of the weakest of the domestic auto manufacturers has resulted in my advising, anyone who asks me, to avoid Chrysler products. I just can't see recommending their vehicles when there is no guarantee that the company will still be around by the time the loan is paid off. This is especially true when there are so many other more competitive products out there from other manufacturers. Sure, if Chrysler is sold off or liquidated, Jeep will likely survive in some form, but Dodge and Chrysler products are a big question mark. Yes, that is just my opinion.
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- Posted by
- Lee Scott January 19, 2009, 12:00 PM
- Permalink
- Categories:
- Car Buying, Car Loans and Financing
- Technorati Tags:
- 0% Financing, Chrysler, Chrysler Financial, Dodge, Jeep
LOL! I guess consumers figured out how annoying Toyota's "saved by zero" was and decided not to buy!
More seriously, although 0% might not help consumers, it could sway them into buying (the better) Chrysler products......
....... which brings me to my question. Lee, isn't the bailout loan supposed to virtually guarantee that they wouldn't go under? I mean, I know it's not all the money they need, but I've assumed that if they make good use of this money the government would probably give them more. Am I being realistic here?
@BA: The government has pumped something like $200B into Citigroup and they are still on the brink of going under.
The money loaned to the automakers offers no guarantees of success. Unless consumers buy vehicles, nothing will save them.