No wonder these car companies are going under. O% financing - these numbers just don't add up and a major reason of why they are in the ****storm now. These companies screwed themselves by offering these ridiculous deals in the past and as you can see just from this thread alone, people will not buy the vehicle unless they get 0%. I honestly believe 0% financing will never return, if it does, these companies never learned their lesson in the first place.

 

That doesnt even start to sum up automaker's issues. The main issues with Gm and Chrysler, is simply put: they had way too many hands in the money pie.

Just because they offer 0% financing option does not mean they aren't making money. Hell, you bought a new Ram, I don't care what you paid for it, but consider this: if that truck retailed out at 48,000 and say you bought it at 32,000, the dealer still made one hell of a profit on your ***.

 

you'd be surprised what they build these trucks for, they're making a profit either way. Chrysler gradually grew as demands did and when the economy fell, they were too big to make enough money to sustain what they had built.... They'll get on there feet and then grow like they once did.

 

Is that not what I just said?

 

yes, that's why i'm agreeing with you, would you like a +1 or a what he said in my post to avoid confusion?

 

lol, man its 1 in the morning here, Im buzzed, and just handing out chit

 

I agree with the other posters about Chrysler still making a profit. Remember, Fiat wanted in because they want access to Chrysler's manufacturing lines. Chrysler has one of the most efficient assembly lines and it's a cost efficient way for Fiat to break into the American market and start bringing their products like the Alfa Romeo to the States.

As for the 0%, the point here is that it was supposed to be good through Monday, 4 May and many people here had deals agreed to this past weekend and then the financing was pulled because Chrysler Financial is essentially going out of business under the Chapter 11 Re-organziation. I would expect 0% too when it was advertised and already agreed to. I was lucky and still got the 0% from my dealer this past Saturday but I too would have been very upset if I was told after I negotiated the deal last Friday on the phone that the 0% was gone when I went to pick up the truck on Saturday.

Ultimately, dealer rep does play into this because different dealers have different leverage. One person wrote on one of the threads here that they had 7% (reduced from 8%) and thought it was a good deal but that's terrible in this market. Anything over 5% is ridiculous right now in this market.

Jason

 

They can certainly offer 0% if they want to do it and still make a profit. They are not even actually carrying the note. In the case of a new Dodge, they pay an upfront fee to the financial arm (Chase or Chrysler Financial, which was not the same company as Chysler Motors). This is usually only a fraction of the actual amount you would pay in finance charges for a couple of reasons:
#1: Chase and/or Chrysler becomes the preferred lender, which gives them the first shot at people whose credit will not qualify for 0% and they can charge them.
#2: They get the money up front, which they can invest and make profit on the interest.
#3: A good number of the cars/trucks (more than you might think) never are kept the full term of the loan. Some are stolen or totalled, but many people like to trade every 2-3 years, so when that happens they are off the hook for the rest of the time value of that money.

 

Let me put a spin on this, you want to buy used car or truck, intrest rates can be 7% or higher, most banks will not deal on a two or three old car or truck, but chrysler credit used to jump all over a new one thats worth more, and the used car sales person walks you over to a brand new one with o miles, some times o% sound nice.

Truth be told o% is built into the price anyways.

The japanease sold products, Ford Gm and Chrysler sold o% Financing..

 

I tried to get the internet advertised price but they told me that is internet special only you have to apply onliine etc. I said you gotta be kidding me left and that is why I now drive 50 miles to my dealership. Its fun. good boot on the highway Not like I go there much.