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.
This week, Dodge will try something different after it reveals the refreshed 2015 Challenger and Charger at the New York auto show.
The deal, called the Dodge Double-Up, boils down to this:
Dodge will offer a one-year lease on a 2014 Charger or Challenger. In a year, the shopper can move into a three-year lease on a 2015 model of either vehicle for the same monthly payment and no more money down.
If a shopper buys the 2015 model instead of leasing it, he or she gets a $1,000 incentive.
The program will begin Thursday, April 17, and run through August, Dodge brand head Tim Kuniskis said.
Kuniskis, who is also head of fleet operations for Chrysler Group, has signed an agreement with Enterprise Holdings to take the 2014 Chargers and Challengers as they come in from the short-term leases. Enterprise operates the Enterprise, National and Alamo rental brands and buys more than 1 million new vehicles each year.
The agreement with Enterprise keeps the off-lease 2014s from going to auction and driving down residuals of 2015 models, Kuniskis said. Residuals are the future off-lease value of vehicles.
Higher residuals allow Dodge to offer lower monthly lease payments. Kuniskis did not disclose the details of Enterprise’s purchase agreement.