Fiat Chrysler Launches Zero-Interest, 84-Month Loans to Drive Sales During Pandemic
Ninety-day payment deferrals are also on the board.
We're only four months into the new decade and the world has already been subject to a whirlwind of events. The deadly coronavirus outbreak has agitated most of life's normalcies and hammered the delicate economic climate across the globe. The automotive industry is among the largest players affected by the pandemic, and automakers' slipping sales have barreled over the edge as we turn from 2020's first to second fiscal quarter.
Fiat Chrysler Automobiles launched a new marketing campaign this week titled "Drive Forward," specifically aimed at stimulating its flatlining sales by offering consumers financial incentives when purchasing a new vehicle from the majority of its brands.
To kick things off, FCA is offering no payments for 90 days on all 2019 and 2020 Chrysler, Dodge, Fiat, Jeep, and Ram automobiles. However, select vehicles are offered with another enticing promotion: no-interest financing for 84 months.
A spokesperson at FCA told The Drive that the following models are eligible for the program:
- 2020 Dodge Durango (excluding SRT)
- 2019 Dodge Grand Caravan
- 2020 Dodge Grand Caravan
- 2019 Dodge Journey
- 2020 Dodge Journey
- 2020 Jeep Compass
- 2020 Jeep Grand Cherokee (excluding SRT/Trackhawk)
- 2019 Jeep Renegade
- 2020 Jeep Renegade
- 2019 Ram 1500 Classic "DS"
- 2019 Ram 1500 "DT"
- 2020 Ram 1500 "DT"
You might notice the lack of performance-oriented vehicles included in the offer. FCA says that despite not being able to buy a Hellcat with no-interest financing, you can still take advantage of the Dodge's Power Dollars promotion which gives consumers a $10 discount for every pony pumped out by the powertrain. The Dodge Charger, Challenger, and Durango are all included in the Power Dollars program.
Chrysler vehicles are also absent from the offer, though the marque's lineup is said to be offered at employee pricing. No financial incentives are offered on Alfa Romeo models as part of this promotion.
FCA also touts the ability for customers to order their new vehicles from the safety of their home—this includes conducting a trade-in and applying for financing. Once the vehicle is purchased, customers can have the vehicle delivered directly to their driveway.
Online ordering is something that automakers like Tesla have been advocating for, though notable push-back has outright banned the process in some states. FCA explained to The Drive that while it cannot sell directly to customers, those interested in purchasing a car can complete the process through a dealer online.
By now it's evident that many consumers don't have a tough time stomaching an 84-month vehicle loan, meaning that no-interest financing might just be the icing on their proverbial cash cake. However, it's difficult to predict if this tactic will bolster slipping sales in a bittering economic climate. More than 10 million Americans filed for unemployment in March as a result of coronavirus-inspired layoffs and furloughs, meaning that 90 days of no-payments might not be enough to persuade uneasy consumers to make a large financial commitment like a new vehicle.
Got a tip? Send us a note: firstname.lastname@example.org
- RELATEDAuto Loans Rank Third-Largest Factor in American Consumer Debt, Rates to Rise in 2019Low rates are coming to an end, and consumers are likely to feel the pinch.READ NOW
- RELATEDOver Half of New Car Loans in Canada Have 84-Month Terms as Sales Continue to RiseIn most cases, however, this doesn't end in the buyer's favor.READ NOW
- RELATEDInterest Rates on Auto Loans Highest in Eight YearsThe average annual percentage rate on new financed vehicles was 5.2 percent last month, according to analysts at Edmunds.READ NOW
- RELATEDReport Highlights Racial Discrimination in Car Sales, Auto LoansLess-qualified whites were given more financing options than more credit-worthy non-whites at eight dealerships in Virginia.READ NOW
- RELATEDSubprime Auto Loans Decline in Third Quarter, Experian SaysStatistics from credit-reporting agency Experian has average term for new-vehicle loans hitting an all-time high of 69 months.READ NOW