The Auto Writer

Chrysler LLC has reintroduced zero percent financing for qualified buyers. One of the models eligible for special financing is the Dodge Challenger.

In a bid to at least stabilize its free fall, Chrysler has rolled out zero percent financing for sixty months on a wide variety of 2008 and 2009 models. Thanks to a $1.5 billion federal loan to its financing unit, Chrysler Financial, the nation’s third largest automaker may have a compelling reason for buyers to consider a Dodge, Jeep or Chrysler product.

Chrysler suffered the most of all car companies last year when its US sales plunged by 30%, even dropping by 53% in December. Extremely tight credit shut many buyers out of the market while other potential buyers were certainly concerned about the automaker’s future.

Big Bucks For Chrysler Financial

With both GM and Chrysler issuing dire warnings last month that they would shut down by year end, purchasing a Chrysler product suddenly carried more risks with it than many consumers would want to assume. Thanks to the new loan deal for Chrysler Financial, that concern has been reduced at least for now.

The vehicles eligible for special zero percent financing include the following:

• Jeep: Wrangler, Grand Cherokee and Commander

• Dodge: Ram, Grand Caravan, Charger, Challenger and Magnum

• Chrysler: Town & Country and 300/300C

Up until recently, only buyers with a credit score of 700 or above were eligible for Chrysler financing, while the new financing deal captures consumers whose credit score is above 620. Leasing won’t be included with this offer as that is something the automaker pretty much abandoned back in August 2008.

March 31st Is An Important Date For Chrysler

Last month, Chrysler LLC was the beneficiary of a loan package totaling $4 billion which the company says will see through the first quarter. March 31st is the deadline for Chrysler to prove that it has a viable option going forward in order to be eligible for additional federal assistance.

If they cannot prove that they have the wherewithal to survive for the long term, Chrysler could be forced into structured bankruptcy by Congress. Likely, new car warranties would be protected, but the automaker could be dissolved and its assets sold off.

Source: Chrysler LLC