NEW YORK (CNN/Money) -
DaimlerChrysler AG's Chrysler group said Wednesday it plans to offer interest-free three-year loans on most 2003 model cars and trucks, following the lead of rival General Motors Corp.
GM (GM: up $0.20 to $45.75, Research, Estimates), the world's largest automaker, has led the industry into two rounds of zero-interest financing in the past year. In extending this new round of incentives to 2003 models, GM will no longer offer the zero interest financing on 2002 models, although it will continue to offer cash back or low-interest financing of between 1.9 and 2.9 percent to move out the remaining 2002 vehicles through the end of the year. The incentives on 2003 models will run through Oct. 31.
| |
CNN/Money Autos
| |
| | |
| | |
|
The first, in the wake of Sept. 11, produced a record sales month for the industry last October, and strong sales throughout the first quarter.
The second round, which started in July, applied to 2002 models that GM and other automakers wanted to clear off of dealer lots to make room for the 2003 models. Ford, which announced more modest incentives the same day as GM's second round of zero-interest was announced, responded the next day by basically matching the offer.
Gary Dilts, Chrysler's senior vice president of sales, told reporters on a conference call that the incentives will officially begin at midnight Wednesday, according to Reuters.
Chrysler is a subsidiary of DaimlerChrysler AG (DCX: up $1.65 to $41.52, Research, Estimates).
Ford Motor Co. (F: up $0.11 to $11.05, Research, Estimates) announced its own plans to extend its zero-percent financing summer clearance sale through the end of September on 2002 models, although at this point 3.9 percent is the best interest rate that it will offer on 2003 models.
Ford spokeswoman Susan Krusel said that the zero-interest offer on up to 5 years loans for its 2002 model will give it a $50 a month advantage on a $30,000 vehicle compared to GM's financing offer. And she said that the majority of vehicles Ford dealers' lots today are still the 2002 models.
"We're still focusing on '02 sell down," she said. "We believe our programs are effective. We will continue to look at our '03 inventory and respond (to the GM offer) if it's necessary."
|
