DaimlerChrysler AG's Chrysler Group is leasing 2006 model year vehicles at a drastically higher rate than crosstown rivals General Motors Corp. and Ford Motor Co. as it works to unload a glut of new cars and trucks.
Lease deals can help automakers boost sales because they typically offer lower monthly payments.
Dealers say Chrysler is making lease deals on 2006 models even more attractive by lowering lease interest rates, relaxing credit requirements and raising vehicles' residual values.
It's good news for car buyers who can lease a loaded Jeep Commander full-size SUV at some dealerships for less than $200 a month. But analysts say it could prove a risky strategy for Chrysler, particularly as 2007 models are arriving at dealerships.
To make payments attractive, automakers typically have to subsidize leases with precious marketing dollars. Moreover, Chrysler could take a hit on the back end when it sells vehicles coming off lease -- especially if it overestimated their residual, or resale, value when the lease was calculated.
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