July 22 (Bloomberg) -- Chrysler Group LLC is offering new-car buyers as much as $4,500 in cash, doubling the potential savings for customers who use a U.S. program to get less fuel-efficient cars off the road.
Customers who get the maximum $4,500 credit for a trade-in under the federal “cash-for-clunkers” initiative will reap a $9,000 benefit, the Auburn Hills, Michigan-based automaker said in a statement today. The incentive runs from tomorrow through Aug. 31 and covers most 2009 Chrysler, Dodge and Jeep models.
Chrysler’s offer takes effect alongside the $1 billion U.S. Car Allowance Rebate System and includes buyers who don’t tap government aid. The company’s 46 percent drop in first-half domestic sales was the deepest among big automakers in the U.S., damped by the recession and its April 30 bankruptcy filing.
“It’s a smart move, and I’m sure we’ll see this from other automakers,” said Jeremy Anwyl, chief executive officer of auto-research company Edmunds.com in Santa Monica, California.
U.S. credits to purchase qualified new autos are designed to speed the scrapping of older vehicles with lower fuel economy. Chrysler’s incentive may sway some buyers whose trade- ins or new autos aren’t eligible for federal help, Anwyl said.
“From a dealer perspective it gives them a much-needed tool to deal with the cash for clunkers rejects,” he said.
Chrysler is offering zero percent financing for 72 months through GMAC LLC on most 2009 models for consumers who don’t take the cash. GMAC took over lending from Chrysler Financial as part of the restructuring in which a group led by Italy’s Fiat SpA bought most assets of the former Chrysler LLC in Chapter 11.
The new Chrysler financing follows 60-month, no-interest loans on some models that started July 1 and end today.
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