AUTOMAKERS: The 0% Solution

The 0% Solution

"It can't get any lower. It can't get any better for the customer," said Bennett Bidwell, head of Chrysler's motor division. Last week the automaker began offering two-year car loans carrying the lowest rate possible: 0%. That attention-getting number was part of Chrysler's response to incentives launched a few days earlier by Ford and General Motors.

To boost slumping sales, Ford and GM have offered a 2.9% rate for two-year loans, 5.9% for three-year terms and 6.9% on four-year deals on most 1988 and - '89 models. Chrysler offered the same rates on the three- and four-year plans. The automakers have...

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