The Detroit News Reports……..
DaimlerChrysler AG's Chrysler Group is leasing 2006 model year vehicles at a drastically higher rate than cross-town rivals General Motors Corp. and Ford Motor Co. as it works to unload a glut of new cars and trucks.
Lease deals can help automakers boost sales because they typically offer lower monthly payments.
Dealers say Chrysler is making lease deals on 2006 models even more attractive by lowering lease interest rates, relaxing credit requirements and raising vehicles' residual values.
This news just give me flash backs, wasn’t this the exact same thing that Ford did in the nineties to boost sales? This is really a great way to hurt resale’s
And trade in values on its vehicles.
Chrysler seems to be going into desperation mode to keep its sales up, which really seems ironic considering that Chrysler has a pretty good product line
Going and shouldn’t need to do this kind of thing.
I think that this points to a bigger problem, one of perception of the product, granted that everybody is doing leases in one form or another, but I don’t think that Toyota or Honda have such high lease vs. sales ratios.
Time for a some new thinking in Detroit.
Read More...
Joe
DaimlerChrysler AG's Chrysler Group is leasing 2006 model year vehicles at a drastically higher rate than cross-town rivals General Motors Corp. and Ford Motor Co. as it works to unload a glut of new cars and trucks.
Lease deals can help automakers boost sales because they typically offer lower monthly payments.
Dealers say Chrysler is making lease deals on 2006 models even more attractive by lowering lease interest rates, relaxing credit requirements and raising vehicles' residual values.
This news just give me flash backs, wasn’t this the exact same thing that Ford did in the nineties to boost sales? This is really a great way to hurt resale’s
And trade in values on its vehicles.
Chrysler seems to be going into desperation mode to keep its sales up, which really seems ironic considering that Chrysler has a pretty good product line
Going and shouldn’t need to do this kind of thing.
I think that this points to a bigger problem, one of perception of the product, granted that everybody is doing leases in one form or another, but I don’t think that Toyota or Honda have such high lease vs. sales ratios.
Time for a some new thinking in Detroit.
Read More...
Joe
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