Chrysler group sales and marketing head Jim Schroer on Thursday told Reuters that interest free financing will remain a popular sales incentive for vehicle makers as long as interest rates remain low.
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“As long as interest rates are low, it’s a great incentive mechanism. The consumer gets a great deal, it’s not an enormous cost to the manufacturer,” Schroer told Reuters following the opening of a new headquarters for DaimlerChrysler’s North American financial services unit.
“If the interest rates increase significantly, then you’ll see the end of zero percent,” Schroer told Reuters. However, the US economy would have to strength beyond “any reasonable expectation” for interest rates to rise, he added, according to Reuters.
