Chrysler Group LLC has been looking at means to improve the resale value of their cars for some time now. And for this the company has resorted to methods to increase their revenue from leases as also to improve the company’s image. The grand success that they had experienced when the redesigned Jeep Grand Cherokee model had hit the market is what they wish to repeat. As per ALG Inc the research firm there has been a boost to the residual value of the Grand Cherokee’s four-wheel-drive version in the third quarter as compared to sales last year which was 35 percent. The reason for this boost has been attributed by them to the volume of production as well as pricing strategy that the company has adopted. The residual value in layman’s term is that value which the buyer could get back in resale and that also determines the buyers monthly lease payments. For test case Chrysler simulated a three year usage program during the buildup of the Grand Cherokee.
There has been an increase of 35 percent in the vehicles delivered by the third quarter. The higher percentage came by way of leases. Then there are 15 other new models that are in the pipeline as yet and would also be sent thought the same lease process. A Chrysler Dealer in suburban Detroit, Dan Frost attributes the rise in sales of the Grand Cherokee solely to the leasing factor.
As per Edmunds the lease sales of the car took a jump to 25 percent this September when compared to the just 2 percent jump the company witnessed in September last year. Since the time Chrysler went into bankruptcy the company has had the best period of third quarter sales. Net loss has come to $84 million and this is also thanks to the sales of the Grand Cherokee as also the revenue rise has been 5.2 percent from the second quarter to $11 billion.
Source: 4wheelsnews
