Chrysler offers 0% for 72 Months on Ram 1500 Quad Cab

[XDCX]

Chrysler just announced that they're offering 0% Financing for 72 Months on the 2008 Ram 1500 Quad Cabs for A-tier customers.

In light of the success that GM had with 0% Financing last month, do you think this incentive will increase the sales on the Ram 1500 Quad Cab?

Are you concerned about CFC's participation? Are they buying deals?

Will most of your customers take the 72 Month Financing or will they need to use the Rebates to structure the deal correctly?

[ssdd]

Steven Starks came on the sebc conference call and told all the sales dm's that they would participate, and buy aggressive.
we shall see

[XDCX]

Originally Posted by ssdd

Steven Starks came on the sebc conference call and told all the sales dm's that they would participate, and buy aggressive.
we shall see

That same message was conveyed to the West BC Dealers but you could tell that there was a fair amount of guarded optimism among the Dealer Principals and General Managers.

It will be interesting to see what the 0% Financing "take rate" will be. Given that it's limited to A-tier customers it may not be that big of an issue. Especially when you factor in how many customers will need the Rebate money to get un-buried from their trades.

[darhaley01]

We will definetly have to what and see if this helps on the trucks. As for the 0% for 72 months will depend on if there is negative equity or not. What really looks good though is the 0% for 60 months for B tier customers. In SE Michigan I am seeing more people who are just happy getting approved let alone worrying about interest rate.

[XDCX]

Originally Posted by darhaley01

We will definetly have to what and see if this helps on the trucks. As for the 0% for 72 months will depend on if there is negative equity or not. What really looks good though is the 0% for 60 months for B tier customers. In SE Michigan I am seeing more people who are just happy getting approved let alone worrying about interest rate.

I guess in this environment there are more "get-me-bought" buyers than we've had in recent memory.

The dealers in the West BC were not certain yesterday if the 0% for 60 program was for ALL B-tier customers or just B+ customers. Hopefully the program is available for B+, B-Flat and B- customers. (I haven't checked the Program Rules yet.)

[darhaley01]

The program for the 0% 60 months 1500's for B Tier customers is for B+, B and B- customers. First you have to get them to tier out and second you have to call your business center to beg for the approval.

[ssdd]

Amen Brotha! we have to work cfc harder than the customers...

Originally Posted by darhaley01

The program for the 0% 60 months 1500's for B Tier customers is for B+, B and B- customers. First you have to get them to tier out and second you have to call your business center to beg for the approval.

[XDCX]

Originally Posted by darhaley01

The program for the 0% 60 months 1500's for B Tier customers is for B+, B and B- customers. First you have to get them to tier out and second you have to call your business center to beg for the approval.

Thanks for the information - I'm pleased to hear that the offer goes to B-.

I'm a little surprised that there hasn't been more coverage of the 0% offer in the media. When GM did their 0% offer they announced their 72 Hour Sale and it seemed like there was a ton of advertising and media coverage.

About the only coverage I've seen so far was an article in Automotive News. (And that was wrong when they first relaesed it - they reported that the 0% offer was for 2009 Ram 1500s.)

I bet most Dodge dealers would be happy if Chrysler just dropped the $2.99 Gas Guarantee commercials and focused 100% of their advertising on the 0% Ram 1500 offer.

[MUAlum92]

We're in a wait and see mode here in Kansas City. We're close to dumping CFC. They haven't bought for sh*t in weeks if not months. It's like they try and find reasons NOT to buy deals. A lot of it is tied in to being given junk bond status and not being able to get money as cheaply as before, but they've become a joke. Not worth the headache.

Keeping my fingers crossed that the incentives will bring people in on trucks. Have a lot to get rid of.

[XDCX]

Originally Posted by MUAlum92

We're in a wait and see mode here in Kansas City. We're close to dumping CFC. They haven't bought for sh*t in weeks if not months. It's like they try and find reasons NOT to buy deals. A lot of it is tied in to being given junk bond status and not being able to get money as cheaply as before, but they've become a joke. Not worth the headache.

Keeping my fingers crossed that the incentives will bring people in on trucks. Have a lot to get rid of.

I hope that the 0% Financing Deal for the Ram 1500 Quads works too. If it worked for GM it should work for Dodge.

Concerning your inventory of trucks, I think that's a problem that all Dodge dealers have right now. I just read the current edition of Automotive News where Zangara Dodge in New Mexico is offering 50% off of MSRP on Ram pickups.

He claims that he's not losing any money but I can't see how the deal would pencil?

[ssdd]

I get a three grand loser on a hemi quad with 20's...

[MUAlum92]

Thanks to a massive hail storm in early june, insurance money allows us to get there an not lose money. We don't play the games a many dealers to: advertising non-national rebates not everyone qualifies for, no plus freight, no excessive doc fee, no finance with us or add $1000 to price, etc. So, I'm happy we are able to legitimately adverstise 50 percent off......you just have to take it with a few dings.

[XDCX]

Originally Posted by ssdd

I get a three grand loser on a hemi quad with 20's...

That's what I was thinking. Even Automotive News questioned how they could do that deal and not lose money.

I checked their website and verified that they are still running the promotion - it's 50% off and they base it off of MSRP. The website featured their TV ad but the fine print was too small to read.

Here's a link to their website (It's a pretty good commercial): www.zangaradodge.com

I'm going to send a friendly e-mail to the GSM and the Internet Manager and invite them to DealershipForum.com and ask that they share some details.

[XDCX]

Originally Posted by MUAlum92

Thanks to a massive hail storm in early june, insurance money allows us to get there an not lose money. We don't play the games a many dealers to: advertising non-national rebates not everyone qualifies for, no plus freight, no excessive doc fee, no finance with us or add $1000 to price, etc. So, I'm happy we are able to legitimately adverstise 50 percent off......you just have to take it with a few dings.

I think you'll have every dealer in the nation praying for a massive hail storm.

It sounds like that deal was a "win-win" for your store and your customers.