January 28, 2009

Chrysler is Desperate: Offers "Employee Pricing Plus Plus"

Thanks to a larger than 30% drop in sales for 2008, Chrysler is now offering employee pricing plus rebates as high as $6,000 on 2008 vehicles and $3,500 for 2009 vehicles. In addition, they're offering 0% financing for up to 48 months and an additional $1,000 if you finance through Chrysler financial. Chrysler is desperate and throwing everything including the kitchen sink into the deal.

The program is called "Employee Pricing Plus Plus" (yes, we agree it's cheesy) and was put into effect January 26th. The only vehicle not included is the Dodge Sprinter. No cutoff date has been announced.

We must admit, this is a great incentive. If you're interested in a Chrysler vehicle, now is the time to act. Start by getting a free price quote here

Great Deals on Small Cars Due to Lower Gas Prices

When gas prices peaked last summer, small fuel-efficient vehicles were selling like hotcakes. It was practically impossible to get a good deal on a Toyota Prius or Honda Civic.

Now that gas prices have dropped, dealers are having a hard time selling these smaller cars. A used 2007 Toyota Corolla was selling at wholesale for $12,700 just 4 months ago. Now the same car goes for $10,000. That's more than a 20% drop. The Toyota Prius is even worse, with a $10,000 price drop in 4 months. (yes, you read that correctly).

On the flip side, large trucks and SUVs have become more expensive. Used prices are inching up as consumers brush off worries of high gas prices. This is a great example of how outside factors can affect the selling price of your car. It's usually not good to follow the herd. The best time to buy an SUV or large truck was when no one wanted them a few months ago. Now that no one wants small cars, this is the time you should be considering one.

GM Dealers Under Pressure to Sell Older Inventory

Starting in March, GMAC will charge GM dealerships more to keep older new vehicles on their lots. This will affect GM dealers who use GMAC to finance vehicle inventories. It comes at a terrible time because cash flow is already a big problem for dealers.

Now they will be required to pay back 10% of the original loan each month for 2007 or earlier model years that are still on the lots. They'll have to pay 10% each month for 2008 vehicles financed before September 1, 2007 and 5% for every other 2008 model on the lot.

Most dealers who still have aged inventory on their lots are already in big trouble when it comes to cash flow. Now they'll be under huge pressure to sell these cars so they don't have to incur these paybacks.

As unbelievable as it sounds, there are still over 1,000 brand new 2007 Chevrolets sitting on dealer lots. There are over 20,000 2008 models still on the lots. If you're looking to pay used prices on a brand new GM car, wait until after March to get the best deals.

Car Buying Report Archives:

  Week of June 18, 2009

  Week of June 11, 2009

  Week of June 4, 2009

  Week of May 28, 2009

  Week of May 21, 2009

  Week of May 14, 2009

  Week of May 6, 2009

  Week of April 30, 2009

  Week of April 23, 2009

  Week of April 16, 2009

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