Chrysler offers 0% financing, or cash back on vehicles

Terry Kosdrosky | DETROIT (MarketWatch) -- DaimlerChrysler AG's (DCX) Chrysler Group launched a new sales incentive offering 0% financing for 60 days or cash back on most 2006 Chrysler, Jeep and Dodge models as the auto maker tries to clear inventory of older vehicles.

The "All About the Best" offer runs until Oct. 31 and follows a 0% financing offer it ran in September. Cash-back amounts will vary depending on model, and can go as high as $6,000, said Chrysler spokesman Kevin McCormick.

Chrysler earlier Tuesday reported a 3.8% decline in September U.S. sales, a much lower drop than analysts expected.

Crosstown rival Ford Motor Co. (F) on Tuesday also launched a new "Truck Month" incentive offering 0% financing for 60 months.

U.S. auto makers have been stung this year by slowing sales for pickup trucks and sport utility vehicles. High fuel prices and high interest rates, along with a slowing housing market, depressed sales of these main profit centers.

Chrysler announced steep third-quarter production cuts, and a smaller fourth-quarter cut, after inventories of sport utility vehicles and pickup trucks piled up. Summer sales incentives didn't have the same effect as last year, when they generated a huge sales spike.

DaimlerChrysler AG's (DCX) Chrysler Group launched a new sales incentive offering 0% financing for 60 months or cash back on most 2006 Chrysler, Jeep and Dodge models as the auto maker tries to clear inventory of older vehicles.

("Chrysler Offers 0% Financing, Or Cash Back On Vehicles" at 1:18 p.m. EDT Tuesday incorrectly reported the length of the 0% financing.)

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