Chrysler Alone Continues No Interest Financing

DETROIT AP reported that DaimlerChrysler AG's Chrysler Group plans to continue to offer zero-percent financing on some vehicles, making it the lone U.S. automaker to do so.

Chrysler's announcement Thursday came after its two larger U.S. rivals, General Motors Corp. and Ford Motor Co., disclosed they were dropping the no-interest financing plans that the industry embraced last September in the wake of the terror attacks. Ford and GM each omitted no-interest financing from their new incentive programs.

Chrysler's move may not, however, force its U.S. competitors to resume offering the no-interest loans, said analyst Wes Brown of the market research firm Nextrend.

"The programs they're offering are still quite attractive," he said. "They may actually be better because consumers would see immediate benefit from the cash-back programs."

The zero percent loans helped boost sales in the fourth quarter and propelled the U.S. auto industry to its second best sales year on record in 2001. Chrysler was the last of the Big Three automakers to offer no-interest financing.

Chrysler's new incentive plan offers the choice of a $2,500 rebate or no interest, three-year loans on the Jeep Grand Cherokee, most minivans and the Dodge Durango. A $500 rebate, but no cut-rate financing, is available for the Jeep Wrangler. The offers run through May 31, Chrysler spokesman Marc Henretta said.

Ford, the nation's second biggest automaker, unveiled a new incentive program earlier Thursday that gives consumers a cash rebate or a combination of a cash rebate and cut-rate financing on certain vehicles, called the "cash-plus option."

The program runs through July 1 with rebates of as much as $3,000 and finance rates as low as 0.9 percent.

Customers can choose a $3,000 rebate, or a $1,000 rebate with 0.9 percent financing for three years, 3.9 percent for four years or 4.9 percent for five years on the Ford Windstar minivan.

Other Ford vehicles that offer the choice of a rebate or a cash-plus option are the Ranger, F-150, F-150 Super Crew, Econoline E-150, Focus and four-door Explorer.

Ford vehicles that offer the choice of cash back or low-rate financing, but not a combination, are the Crown Victoria, Explorer Sport and Sport Trac, Taurus, Excursion, and V6-equipped Mustangs.

General Motors, the world's biggest automaker, unveiled its new incentive program on Tuesday. It offers $1,000, $2,000 or $3,000 in rebates and financing rates of 1.9 percent, 2.9 percent or 3.9 percent on new vehicle loans.