In an effort to boost sales, Chrysler Group said Thursday it is expanding a program that allows customers to return new vehicles within 60 days if they aren't happy with their purchase. In addition, the automaker is also offering zero-interest financing on most 2010 model year Chrysler, Dodge, Jeep and Ram truck vehicles, it said.
The Auburn Hills, Mich., company first offered the vehicle-return program on its line of Dodge and Chrysler minivans, and has extended the offer to include most 2010 models. Chrysler will also make the first two months payments of up to $500 a month -- a maximum $1,000, it said.
The incentives come as Chrysler and other automakers reported disappointing sales in June. Though higher than a year ago, most manufacturers reported sales slipped more than usual compared to May. June sales are typically slightly less than those in May, but most carmakers reported double-digit drops in new registrations. Chrysler reported a 12% month-to-month decline.
In addition to zero-interest financing for up to five years and the return-purchase program, Chrysler is also offering up to $3,000 cash back on purchased and leased vehicles. The incentives can't be combined with one another, and are valid until Aug. 2, Chrysler said.
Other automakers are expected to roll out similar deals in the coming days. Toyota Motor (TM) began the incentives war earlier this year to stem falling sales caused by its recall of some 8 million cars in the U.S. over defects that could lead to unintended acceleration.
Toyota, the world's largest automaker, said Thursday it is opening seven additional safety field offices across North America to speed investigations into vehicle defects.
Investing Like Warren Buffett
Learn from one of the world's best investors.View Course »