Leases are a major factor to be considered in the new car sales market, and Chrysler is coming tending to that aspect of its business very diligently. After seeing success with the new Jeep Grand Cherokee after heavily addressing residual value after three-years, the company saw great success and is planning to replicate the method with 15 other new and refreshed models.
The Grand Cherokee’s third-quarter delivery rate rose 35%, with a considerable increase in leases. The lease rate of the vehicle was 25% in September, compared to 2% just one year prior. “Beyond any shadow of a doubt, the leasing factor on the Grand Cherokee is the reason it’s having an outstanding sales rate,” said Dan Frost, a Chrysler dealer in suburban Detroit.
Chrysler’s four brands saw 11% of sales come from leases this year, from 2.6 in 2009. Though this is a vast improvement in such a short time, it is still behind the industry’s 21%.
– By: Stephen Calogera
Source: Detroit News