Doesn’t Dodge’s Innovative 1-Year Lease Make Perfect Sense For Electric Vehicles?

3 years ago by Eric Loveday 2

2015 Dodge Challenger

2015 Dodge Challenger

2015 Dodge Charger

2015 Dodge Charger

When Dodge unveiled the 2015 Challenger and Charger at the New York Auto Show, the automaker simultaneously released details on an innovative 1-year lease program for Model Year 2014 Challengers and Chargers.

The idea, at least according to Dodge, is that this lease deal will allow Challenger and Charger fan to lease a current 2014 Model Year vehicle without missing out on the revamped 2015 version.

Timothy Kuniskis, president and CEO of Dodge, stated:

“The last thing I want to do is take these people for the next five or 10 months and make them upset.  I want them to feel good about what Dodge is doing for them.”

The deal, called the Dodge Double-Up, is explained by Automotive New as follows:

“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 began on Thursday April 17 and will expire in August when the 2015 versions go into production.

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Kuniskis was formerly head of Fiat’s North American operations where he was credited for the cheap lease program tied to the Fiat 500e.

Though the Dodge 1-year lease deal has nothing to do with plug-in vehicles, we see it as a potential way to attract buyers in who seem to be holding out for the next plug-in.  For example, the longer range Nissan LEAF, likely coming as a 2016 Model Year vehicle, is probably making potential LEAF buyers think twice in regards to buying the currently available model.  The same we believe to be true for the Chevy Volt, which has a next-gen version coming soon too.

But what if either Nissan or Chevrolet were to offer this 1-year trade-up lease deal?  Would you then be less afraid of missing out on the next-gen plug-ins?

Sure, the $7,500 federal tax credit would complicate the deal (we’ll let the automakers and dealers figure out how to deal with that aspect of the lease), but wouldn’t this make perfect sense for the ever evolving plug-in vehicle segment?  We sure think so, but do you?

Below, Automotive News details Dodge’s creative lease deal:

• A shopper can lease a 2014 Charger or Challenger for 1 year. Leases of 15,000 miles start at $329 a month with $2,999 due at signing.

• In a year, the shopper can lease a 2015 model of either car for 3 years/36,000 miles for the same monthly payment and no more money down.

• The 2015 model’s sticker price must be within $1,500 of the 2014 model sticker for payment terms to carry over.

• The customer must take delivery of both vehicles from the same dealership.

• The lease terms depend on the shopper’s credit. The lender is Chrysler Capital.

• A consumer who chooses to buy the 2015 model receives a $1,000 incentive.

Source: Automotive News

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2 responses to "Doesn’t Dodge’s Innovative 1-Year Lease Make Perfect Sense For Electric Vehicles?"

  1. mike w says:

    1 year lease wow that’s not for me. that means after 1 year you have to pay sales tax, freight and processing again. it sounds like this process is going to cost the consumer a lot of money.

  2. It’s not a bad deal if you’re rolling over to the 2015, since they stipulate that you won’t have to pay the down again. But if you don’t the $3k down means you’re effectively paying an extra $250 per month, or $579 per month plus gas.

    I’d much rather buy or lease an EV, get the down payment paid for by the $2,500 – $5,000 Clear Air Rebate, and then save another couple hundred bucks a month by not buying gas. The $7,500 Federal credit comes in really handy around tax time, too.