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AMC Chops Interest to Zero for 1986 Models on 2-Year Loans

September 03, 1986|Associated Press

DETROIT — American Motors Corp. announced today that it would offer zero-interest financing for most of its 1986 cars and Jeeps, the latest volley in the incentive war among U.S. auto makers trying to clear the way for its 1987 model year.

"You just can't go below zero. . . . We wanted the best program for our customers and they got it," said Joseph E. Cappy, AMC president and chief executive officer.

Last week, General Motors Corp. and Ford Motor Co. began offering 2.9% loans and Chrysler Corp. offered car buyers 2.4% loans through their financing arms.

The GM and Ford offers were on three-year notes, while the Chrysler offer, like the AMC offer, is on two-year notes.

AMC also will offer 2.9% financing on 36-month notes and 5.9% financing on 48-month notes.

Cappy said the program begins Thursday and covers all 1986 Renault Alliance and Encore compacts, made in Wisconsin, as well as its four-wheel-drive AMC Eagle, Jeep Cherokee and Wagoneer sport utility vehicles and its Jeep Comanche compact pickup trucks, made in Ohio and Canada.

Dealer showrooms have been swarming with potential car buyers since the latest wave of incentives began.

AMC, the nation's fifth-largest auto maker, has been suffering from lagging sales of its U.S.-made cars. It is 46% owned by the French firm Renault.

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