Chrysler matches 'Cash for Clunker' rebates - - Aftermarket Business - Wholesaler, retailer automotive parts

Chrysler matches 'Cash for Clunker' rebates

Source: Aftermarket Business

Chrysler Group plans to double its incentives under the current "Cash for Clunkers" legislation, which can offer drivers up to $9,000 in savings for a new Chrysler, Jeep or Dodge.

"Everyone shopping for a new car or truck qualifies for an incentive of up to $4,500 - even if they don't have a vehicle that qualifies under the U.S. Government's program," says Steven Beahm, vice president, Sales Operations, Chrysler Group LLC. "This incentive is great in that it's easy to understand and available to everyone."

Beginning July 23, Chrysler Group LLC will offer up to $4,500 Consumer Cash or 0 percent financing for 72 months through GMAC Financial Services on most 2009 model vehicles. These incentives are valid through Aug. 31.

The Car Allowance Rebate Systems (CARS) program, more commonly known as "cash for clunkers," begins July 23 and offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased.

Not all vehicles qualify under the legislation. Consumers get a voucher worth $3,500 if they trade in a vehicle getting 18 mpg or less for one getting at least 22 mpg. The voucher grows to $4,500 if the new car's mileage is 10 mpg more than the vehicle being traded in.

"The administration's program is aimed at getting less fuel-efficient vehicles off the road, and for vehicles that meet the requirements, offers a great incentive to do so," Beahm adds. "But we didn't want consumers without qualifying vehicles to feel left out so we are offering up to $4,500 to everyone."

Chrysler emerged from Chapter 11 bankruptcy protection last month under new ownership and is now working to lure back car shoppers in a depressed market. Chrysler sales were down 46 percent for the first six months of the year.

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