Chrysler Advertises "Percent Off" Instead Of "Cash Back" For New Incentive Program

[Perian]

Link: http://www.autonews.com/apps/pbcs.dl...&rssfeed=RSS32

Bradford Wernle - Automotive News - August 1, 2008 - 12:02 pm ET


DETROIT -- Chrysler LLC is offering 40 percent off select Dodge Ram pickups as part of its August incentive program for dealers, who were stunned a week earlier by the automaker's announcement that it was getting out of the leasing business.

Chrysler is calling its August promotion "Shop 'til You Drive." It is intended to steer customers who leased in the past into retail incentives by lowering monthly payments.

Said Jim Press, Chrysler co-president: "We are leveraging the move from leasing to retail purchases to offer our customers the best deals of the year and make buying as affordable as renting.

"We have repackaged our incentive spending typically spent on leasing into retail purchase packages to lower monthly payments on select vehicles from the Dodge Caliber and Dodge Charger to the Chrysler Town & Country and Jeep Liberty. With the model year ending on 2008 vehicles, the time to buy has never been better."

Chrysler Financial is offering customers as much as $2,000 cash on select retail purchases and expanding its offering of 72-month financing on a range of mid-sized, full-sized and compact vehicles. To take advantage of the $2,000 offer, customers must finance through Chrysler Financial.

Think clearance sale

Chrysler is offering 0 percent interest for 72 months to customers with an A credit rating on five 2008 vehicles: Dodge Ram, Durango, Chrysler Aspen, and Jeep Commander and Grand Cherokee. Customers with a B-tier credit can get the same vehicles at 0 percent for 62 months.

Chrysler has been telling dealers to think in terms of the kinds of clearance sales that department stores have. Such sales offer goods priced in terms of percentages discounted off retail.

In addition to 40 percent off sticker price for the Ram, Chrysler is offering as much as 25 percent off the Aspen, 24 percent off the Town & Country minivans and 28 percent off Grand Cherokees.

Chrysler's TV commercials will feature the up-to-40-percent-off message.

Full article at link.

[Perian]

Long live Joe Garagiola and "Buy A Car, Get A Check".

[megeebee]

A different way of saying the same thing. But it may resonate with consumers.

personally, I'd rather have a discount up front rather than pay out an amount of money and then wait for a rebate check.

[Hitman1970]

Welcome to clothing retail tactics!

"Back-to-School fall fashions with up to 60% off SUVs and pick-ups!"

[Whitesky]

I saw this a few weeks ago and it very much grabs your attention to see 40% Off in the windshield instead of the big tacky $2,000 Rebate or $0 Down in yellow or neon green on top of the hood. It's cleaner and simpler and people understand what kind of deal they're getting. IMO anyway.

[AERO1]

I guess you have to discount Chrysler products 40% in hopes to move any units. I wouldn't buy a Chrysler product no matter what the percentage off they were offering. They have the ugliest and worst product line of any U.S. automaker.

Ford has a shot. Chrysler should close their doors and go home. They haven't done anything to win over U.S. auto buyers.

GM has gotten the picture. If you design stylish, nice looking vehicles, the public will respond. GM will be back on top within the next 2-3 years. Ford, while slower to respond to styling may make it within the next few years.

[elderon]

i dont know if this is a good idea or not. Kinda sounds like a cheaping of the brand and desperation.

I wish them luck though. I don't want to see the US lose any more brands.

[cad1cts]

Serra Nissan down here in Birmingham has been doing that % off thing for about the past month

[goatgary]

Dallas area has had 40% on F150 for the last 3 weeks.

[Chaz_23]

Why not keep the gas thing going? That was a good one.

[EldoFan]

Originally Posted by elderon

i dont know if this is a good idea or not. Kinda sounds like a cheaping of the brand and desperation.

I wish them luck though. I don't want to see the US lose any more brands.

I don't see it as desperate or 'degrading the brand'.....just a logical business decision made to respond to the 'death of the lease'.

Hope it helps though. Have no wish to see the Big 3 become the 'Big 2'

[Rocket 88]

Personally, I think the percentage off idea is clear and will make sense to consumers. IMO it is better then the complicate $2.99/gal gasoline promotion.

Unfortunately, 40% of a HUGE markdown and shows how bad off Chrysler is doing.

I can't see how Chrysler can survive without a partnership or alliance, such as Nissan-Renault. Can someone see if Iacocca is around?

[nickf1011]

Originally Posted by Chaz_23

Why not keep the gas thing going? That was a good one.

Because gas prices seem to be retreating somewhat. If people see that gas prices are going down, even if it's not by a lot, the idea of having a locked in fuel price might not seem like such a dandy of a deal anymore.

[383_torque]

Just like in Retail clothing, the word "SALE" means nothing anymore. Most consumers don't even notice the signs since there is always a sale going on.

Maybe it is time to move on to a new retail buzzword.

An "Outlet" mall for cars???

[paul8488]

Almost half price for a Ram? That's a whole lot of gas!

As somjeone said in another thread, turns out that the fact that GM's trucks were do for a redo last year has probably worked out for them... as bad as it must be to have released a new truck last year... the only thing worse would be to release one now. GM certainly made a whack of cash on their new trucks and SUVs... lets hope they use it wisely!