Automakers usually struggle to sell current-model vehicles once they have shown their replacements, say, at an auto show. Typically, they ladle profit-sapping incentives on an outgoing model. But this week, try something different after it reveals the refreshed 2015 Challenger and Charger.
Dodge will launch a Dodge Double-Up offer on April 17 that is aimed at keeping sales up at the 2014 Charger or Challenger, which refreshed version will be unveiled at the New York Auto Show. The deal provides for an offer of a one-year lease on a 2014 Charger or Challenger.
In a year, the buyer can shift into a three-year lease on a 2015 Charger or Challenger for the same monthly payment. Likewise, the buyer would not have to make a down. Also, if a shopper buys the 2015 model instead of leasing it, he or she will receive a $1,000 incentive.
The program will run through August, according to Dodge brand chief Tim Kuniskis, who is head of fleet operations for Chrysler Group. He has inked a deal with Enterprise Holdings to take the 2014 Chargers and Challengers as the vehicles come in from the short-term leases.
Enterprise operates three rental brands in the United States and buys over 1 million new vehicles annually. The Enterprise deal prevents the off-lease 2014 models from going to auction and push down residuals of 2015 Dodge vehicles, Kuniskis remarked.
Higher residuals enable the brand to offer lower monthly lease payments. In the first quarter of 2014, Dodge posted a 4-percent drop in sales for the Charger and a 24-percent decline for the Challenger. The brand will roll out the 2015 Challenger in the third quarter and the 2015 Charger in the fourth.
According to Kuniskis, the Double-Up program gives respect for Charger and Challenger owners. He said that he wants these owners to to feel good about “what Dodge is doing for them."
“If you have your eye on a new Challenger or Charger, there’s no need to wait for the new models to arrive,” said Tim Kuniskis, Dodge Brand President and CEO, Chrysler Group LLC. “The Dodge Double-Up program lets you drive today’s Charger or Challenger and trade to the 2015 with no increase in payment. This is our way of thanking our loyal Charger and Challenger customers, and extending this offer to any new customers longing to get into one of these iconic muscle cars.” [source: Chrysler]