Chrysler is hoping generous incentive spending this month will jump-start its retail sales performance.
It's unclear how much of Chrysler's 25-percent sales increase in April over the same month last year went to fleets, but with a number of new products still many months away, adding cash on the hood might be a good idea -- especially considering the fact that Toyota's zero-percent financing on several models continues through June 1.
"We've got to rebuild the brand to remove any cautions consumers have," said Bob Carter, group vice president of Toyota's U.S. sales, in a conference call. "We're going to do what it takes to keep ourselves competitive in an improving but challenging market."
The same is true for Chrysler, which is offering zero-percent financing for 60 months on all Chrysler-brand vehicles plus hefty incentives on Jeep, Ram, and Dodge vehicles. As you may have guessed, the Dodge Challenger is not one of the many vehicles with zero-percent financing, but potential buyers do get $2000 in Mopar Bucks with any lease or purchase of the muscle car.
Others like Chevrolet and Ford are keeping pace in the incentive race, too. Both automakers offer zero-percent financing for 60 months on many vehicles. On the 2010 Ford Fusion and 2010 Chevrolet Malibu, for example, zero-percent financing for 60 months is available.
With these types of deals continuing through the end of May, it might prove difficult for automakers to distinguish themselves from one another.
Source: Chrysler, Reuters