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/ Friday, August 30,1985 Section C Low financing rates ^ are spurring auto sales It's been feast or famine lately for auto dealers. They were first hit by a slowdown in sales because of the haulers' strike and now customers are flocking to the dealerships. After experiencing shortages of cars due to the truckers not deliver- '• ing them, dealers may again soon experience shortages as cars are selling so fast they can't keep them in stock. u The reason for the dramatic increase in auto sales is that the K big three auto makers, along with a couple of the foreign car t. makers, are now involved in an end-of-the-year financing rate battte. Interest rates for car loans have been slashed by the ?• manufacturers on many 1985 models to make room for the new .1986 model year cars. ; Chrysler currently has the lowest rate with 7.5 percent any ! lower financing. > Each of the big three are offering the special rates on loans \ up to 48 months in length and will be running the specials until the 1986 models are officially introduced on Oct. 2 or 3. f, According to Tim Benoy of Benoy Motor Sales in Woodstock, -/ the special rate offered on Chrysler model cars comes straight ; from the manufacturer and involves no dealer participation. •« Benoy said the rate and the models it applies to were both set : by Chrysler, but he would guess they picked the models they " had heavier inventories of. new vow UflEREST RAJES FINANCING- Page 2C r 41 "It's on most models from the Omni up to the 5th Avenue," he added. v Since it is strictly a Chrysler deal, Benoy said the special rate does not affect the final dealer price of the car. He added that the low rate is available to all qualified buyers and does not require a higher down payment. "The cash rebates run *rom $400 up to $1,500, depending on the car," Benoy said. "There is a break-even point when it becomes more advantageous to take the rebate over the financing." Benoy pointed out, however, that a buyer would have to be financing a relatively small amount before the rebate would be more than the buyer would save on financing. For that reason, he said most buyers are taking the low rate instead of the cash back and financing as much as they can to maximize their savings. "It's moved a lot of cars for us," Benoy said. "Sales have about doubled since they announced the low rate." According to Benoy, bank rates are currently between 11 percent and 12 percent for 48 month loans? which means the special rate saves the buyer about 4 percent in interest payments. "It could work out to d real significant savings," he added. Just how much of a savings depends on how much the buyer is financing." Benoy pointed out that the new rate just announced super­ sedes the other specials that had been running for 8.8 percent financing. He said he felt the new rate really did not have! anything to do with stockpile of cars that resulted from the ] recent haulers' strike and was initiated for a different reason. "Mostly because of the end of the year clear out, Chrysler is helping us make way for the '86s," Benoy explained. Tim Freund, finance manager for Ormsby Motors in Crystal Lake, said he felt the special GMAC rate was started for a similar reason. "The whole reason is to stimulate sales of remaining 1985s left around the country," Freund said. Like Chrysler, Freund said GM set the 7.7 percent level and the local dealers do not have anything to do with it. He added that GM came out with its special rate on August 15 and was the first to do so. According to Fruend, the explanation why GM isn't offering any rebates is very simple. ' - /arr* * w SED CARS ALL paces ̂ MARKEP DOWN! WAS REDUCED TO '78 CAMARO UJ„ »?fl7e Very Clean, 46,000 miles 11254 44W. 0019 to, «.o. lft,50 SHBSy?!¥9 u»s '11,795 '81 SKYLARK 4 DR. ^ Air 11164 4995. ••••••••«•• • bv w '83 CAVALIER 4 DR. . M»oe Auto 11239 .....*4995 *1*99 '82 SUBARU GL WAGON $C0QC 29,000miles#1274 *5795 9i99 '84 CHEVETTE4DR. . $A00fe Auto, 11206 5695.. *1999 :«OtD5MOBaEDILTAWAfiONWJ ,4$95 •83 RE6AL COUPE Low Miles 11239 7695 • 199 '79 ELCAMINO MQQC W/Cap, Loaded, Very Sharp 11276 5395............ *999 '84SUBURBAN - it? 07c Loaded, Low Miles 11262 14,400....... 19i9f 9 •82 CHEVY PICKUP tCQTC Half-Tone 11257 v.495............ 9919 '81DATSUN WAGON $oaQe 11213 *3295 4099 '83 S-10 4x4 EXTENDED CAB PICK-UP $aeQ. 11322, V6, Auto, P.S.,X-Clean 5WD < '84 CELEBRITY EURO-SPORT 4 DR. JftA0- * #1319, V6, Auto, P.S., Air, X-Clean OTW '83 S-10 BLAZER 4x4 $afiQ. 11311, V6,4 Spd., Stereo, Sharp OO *9 '81 CORVETTE 11316, Loaded, Low Miles, Black, Black Leather, X-Clean A Of 199 '83 MAZDA RX7GLS SQQQC l1ia,5Spd.(Ster«,Sunroof BMMF* •81PONTIAC FIREBIRD se?OC nits, AIII»,».C.,LMU-CIMII 9<J99 •84 CORVETTE M 7 9QC WW, Auto, LtMd X-Clean 1114*9 CHEVROLET 49S W. Northwest Hwy. Barrington, IL. 381-2500 * ' v AI EH REGARDLESS OF PRICE! DODGE - CHRYSLER - PLYMOUTH ^ HORIZON/OMNI 7.5% or'400 Cash Rebate TURISMO/CHARGER (INC.SHELBY) 7.5% or $400 Cash Rebate RELIANT/ARIES 7.5% or '400 Cash Rebate LASER/DAYTONA 7.5% or *1,000 Cash Rebate ^ 9 LASER XE/DAYT0NA TURBO,UNCLTURSOU 7.5% or $1,500 Cash Rebate LEBARON GTS/LANCER . 7.5% or *1,000 Cash Rebate LEBAR0N GTS PREMIUM/LANCER ES ! 7.5% or '1,500 Cash Rebate FIFTH AVENUE 7.5% or *1,000 Cash Rebate STANDARD RAM PICKUP 7.5% or '500 Cash Rebate '750 CASH ALLOWANCE ON STANDARD RAM VAN OR WAGON SUNNYSIDt COMPANY 4810 W. ELM (ROUTE 120) McHENRY 815-385-7220 MON.THRUTHURS.9TO? FRI.»T09,SAT.9T05 SUNDAY-CLOSED