Chrysler Boosts Incentives To Offset End Of Leasing
The auto maker will give up to "This is an unprecedented shift to make owning as affordable as renting," said
Chrysler spokesman Chrysler's sweetened offers come a few hours after the auto maker stopped offering leases through its Chrysler Financial arm because of steep declines in the residual values of pickup trucks and sport-utility vehicles. Sales of large vehicles have fallen precipitously in recent months amid high fuel prices and weakened consumer confidence, which has taken a big toll on Chrysler and its domestic rivals. Some Chrysler dealers experienced a flurry of business in recent days as consumers rushed to get a new car with a lease before the tool was no longer available. Dealers, meanwhile, were holding out hope that Chrysler would come through with big incentives. "The cash back is a help especially for some of us that relied on leasing to
drive sales," said a Chrysler announced a week ago that it had decided to suspend leases. In recent
days, Ford said last week that it wrote down The reduced availability of leasing, which has typically accounted for about 20% of new-car sales in the U.S., leaves dealers without a key tool that enables many buyers to get into vehicles they couldn't otherwise afford. Lease payments are usually lower than monthly financing costs for purchases. The changes come at a difficult time for the auto industry in the U.S., where sales are at their lowest levels in 15 years and concerns are rising about the ability of auto makers to weather the downturn. Auto makers will report their July sales figures Friday afternoon, and industry watchers will be looking for comments from Chrysler's rivals about possible new incentives to compensate for fewer leases. -By Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=DH3lPMl3%2BwxoeLrPETJcbQ%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires |
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