$4,000 rebate on a new Chrysler

Automaker announces incentive plan, gives new customers rebates, offers more to current customers and credit union members.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Peter Valdes-Dapena, CNNMoney.com senior writer

2009_dodge_ram.03.jpg
Incentive savings could be used on this 2009 Dodge Ram.
Why I love Detroit
Detroit residents often are asked why they stay. 13 locals answer that question - and reveal their favorite treasures of the Motor City.

Find your next Car


NEW YORK (CNNMoney.com) -- Chrysler announced a new sales incentive plan Wednesday as the carmaker seeks to spur sales while it works through bankruptcy and restructuring.

Chrysler is immediately offering up to $4,000 in cash rebates on 2009 model year vehicles. Actual cash rebates will vary by model and location. Chrysler could not immediately provide specific examples.

Additionally, current owners of Chrysler, Dodge and Jeep vehicles can get $1,000 more toward a new Chrysler vehicle.

While these offers are good, potential Chrysler customers who were expecting blow-out deals now that the automaker is officially in bankruptcy may be disappointed.

"This is not that, certainly," said Jack Nerad, editorial director for Kelley Blue Book, which provides pricing data.

There is also nothing fancy about Chrysler's new incentives. The company is not offering to cover car payments in case of job loss; nor will it compensate buyers for losses in car value should the automaker be forced out of business.

"Consumers are telling us that the net purchase price of the vehicle is the most important factor right now," Steve Landry, Chrysler vice president for sales said in a press release. "So we are pleased to introduce incentives that address what the consumer is looking for."

Job-loss based incentives may have worked for Hyundai, which was first to offer a payment-protection plan, they didn't have the same effect for General Motors (GM, Fortune 500) or Ford (F, Fortune 500), Nerad said. That's because the newness factor of the protection plans had already worn off by the time the American automakers announced their versions.

"If you figure you're going to lose your job, or the odds that that's going to happen, you're pretty unlikely to be considering a new car purchase in the first place," Nerad said.

Buyers who finance their vehicles through participating credit unions can also get another $1,000 toward their purchase. More than 1,500 credit unions with members in all 50 states are participating in a special low-rate financing program, the automaker said.

These rebates are expected to be combined with dealer incentives. Chrysler gives such sweeteners to dealerships, rather than to the customers, but dealers often pass on the savings by reducing the purchase price of vehicles.

A Chrysler spokeswoman would not discuss dealer incentives, which are generally not made public.

Chrysler's "Employee Pricing Plus Plus" incentive program, which ended yesterday, offered customers up to $6,000 on Chrysler, Dodge and Jeep vehicles, including 2008 models, as well as 0% financing.

Chrysler has been the biggest spender among all auto manufacturers on incentives in the U.S. market. Last month, Chrysler spent $4,288 per vehicle on incentives, according to auto data Web site Edmunds.com.

The next highest spender was GM, which is also undergoing a government-driven restructuring and may declare bankruptcy later this month. GM spent $4,063 per sale. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.