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Chrysler Dumps Remaining 2006 Inventory on Used Car Market

By Joe Benton
ConsumerAffairs.com

June 20, 2007

The sales program could produce thousands in savings for value-oriented consumers.

Under the program, a 2006 model-year Dodge Durango SUV with a sticker price of $30,000 as a new vehicle could be discounted by as much as $11,500 on the used-car lot after being used as a demo for a day.

The deep discounts on older models may sway Chrysler consumers to pass over newer cars and trucks, particularly if the updated vehicle doesn't have any new features or a new design.

Previously, Chrysler dealers had to use a vehicle as a loaner for three months before designating it as used and selling it at a steep discount. Loaners are used for test drives or lent to customers who are having their vehicles serviced.

The move helped Chrysler to boost May sales numbers and while giving dealers a tool to unload the outdated inventory from their new-car lots.

As soon as the vehicles are transferred to the used-car side of the dealership Chrysler counts them as sales.

The last-ditch effort is an unusual sales tactic. The excess vehicles are a major source of friction between Chrysler and its dealers who have been refusing to bankroll extra inventory that they feared they could not sell.

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