For the most part, the Big Four are standing pat on the allowances they offered during the previous year. But the changes are significant. In some instances they reflect a new interest on the part of the manufacturers in up-grading and customizing those models that are most popular with their volume purchasers. In Other cases, new incentives are offered to promote a new model that will be entering a highly competitive market for the first time in the oncoming year. But in all cases, the most important allowance modifications show an increased awareness that fleet cars-whether they are used in business, government, leasing, or daily rental-represent an ever-increasing portion of their sales.

Since the major manufacturers offer a number of plans and alternatives, each designed to meet the needs of a particular kind of fleet, only the most widely used plans for business, leasing, and daily rental will be presented here. And since even these programs are somewhat complex, we will highlight only the more significant changes that have taken place since last year.

AMERICAN MOTORS

To emphasize promotion of their new compact, the Hornet, American Motors this year offers $25 under their Purchase Objective Allowance for those choosing this model. Except for one important change, the basis for calculating the Purchase Objective Allowance and applicable payments remain the same as last year, as does the allowance for air conditioning. The change is that the higher maximum allowances will be paid, retroactive to the first 1970 model unit purchased, when customer's purchase objective has been met and customer's purchases total minimum of ten 1970 model units. Basis for calculating the Purchase Objective Allowance and applicable payments remain the same as last year, as does the allowance for air-condi­tioning, A fleet allowance is made for their new 360 C.I.D., 245 H.P. V-8 engine when ordered for a Rebel or Ambassador, but the additional charge for the heavier transmission the engine requires must be borne by the purchaser. As in the past, AM has three separate plans for commercial, leasing, and daily rental fleets. The leasing and daily rental plans remain the same as last year.

BUSINESS FLEETS-PLAN I

BUSINESS FLEETS-PLAN II

Designed for larger volume customers, this plan guarantees the resale value of the fleet-purchased car. Exact details are available upon request but basically the plan pledges to reimburse the fleet owner at tradein time when the wholesale value of the used AM car is less than that of a comparable car of the same year made by any other U.S. manufacturer. In order to be eligible for this plan, requests must be made to AM prior to date of delivery.

CHRYSLER MOTORS CORPORATION

As in the past, Chrysler has two separate plans for business fleets and lease and daily rental fleets. The plan for business fleets has been greatly refined so that purchases above the Basic Purchase Allowance are now graduated into Initial Payment Bracket, Inter-Bracket. Purchase objective units will qualify for payment upon purchase of that number of units equalizing purchase objective. The Initial Payment Bracket begins with the first unit, after achievement: of Purchase Objective and up to and. including the unit which is double the Purchase Objective. The Intermediate Payment Bracket begins with the first unit after achievement of Initial Payment Bracket and up to and including the unit which is triple the Purchase Objective. Maximum payments will be made on all additional units.

In addition, as an inducement to equip the Fury and Polara models with their new 383 cu. in. engine, Chrysler offers allowances equal to the published factory price of the engine (plus automatic transmission) less the sum of $15 and the price of an automatic transmission on such a vehicle equipped with a 318 cu. in. engine.

LEASING AND DAILY RENTAL FLEETS

Chrysler is offering larger allowances all across the board on their 1970 models. The allowance for the new 383 cu. in. engine mentioned above also applies under this plan.

BUSINESS FLEETS

FORD

Continuing its three-program approach to fleet sales, Ford has announced some significant changes in 1970. Under the Fleet and Leasing Allowance Plan, no additional allowances are made for automatic transmissions. Under the Guaranteed Depreciation Program all units must be delivered to the fleet purchaser prior to June 30, 1970. The two plans are mutually exclusive so that a fleet owner can apply for allowances under only one of them. Daily rental companies are excluded from the Guaranteed Depreciation Program.

ALLOWANCE PLAN

An additional requirement under this plan in that all units must remain in service at least five months.

GUARANTEED DEPRECIATION PLAN

Under this plan, Ford guarantees a specified "turn-in" value for all eligible fleet and leasing units enrolled in the program based on the next issue of AMR. As in 1969, the Mustang does not qualify for this plan. All units must be kept in service between eighteen and thirty-six months. The guaranteed value is established by a schedule which sets forth the percentage of depreciation by model and length of use before the date of turn-in.

DAILY RENTAL PROGRAMS

Ford has several plans for daily rental fleets. In most cases they remain the same as last year. Under the Basic Daily Rental Allowance, all Ford, Fairlane, and Mustang models which are not returned to Ford under a repurchase plan are eligible for an allowance of $125. Under the Special Daily Rental Allowance Plan, an additional allowance of $150 over that mentioned above on all Ford, Fairlane, Mustang, and Falcon models will be given when those vehicles placed in daily rental after Jan I, 1970 and retained in service until at least October 1, 1970. Accounts electing to use this special plan are not: eligible to participate in any repurchase program covering units placed in service after Jan. 1, 1970.

The whitewall. allowance (no additional charge) for vehicles placed in bona tide daily rental remains the same.

Under the repurchase programs for daily rental vehicles, the basic plan remain the same as last year. However Ford now agrees to repurchase 100 per cent of specified, models placed in service between Jan. 1, 1970 and June 30, 1970 if the vehicles are returned no earlier than October 1, 1970 and no later than Feb. 28, 1971. Mavericks do not quality under this or any allowance or repurchase plans.

GENERAL MOTORS

For 1970, GM announces only a few important changes in their fleet plans of 1969. Most of these occur in. their daily rental programs.

BUSINESS FLEET PLAN

Requirements remain the same. There is no change in the basic purchase allowance or the Guaranteed Value Program.

DAILY RENTAL

There are no changes in the basic allowance or the special basic allowance. A special allowance of 5 per cent is now given on all vehicles purchased after Jan. 1, 1970 and held until announcement date for the 1971 models. This allowance formerly applied only to those vehicles purchased after Feb.1.

Under the buy-back program for daily rental vehicles, there is no change in the full year turn-back guaranteed value. But on those vehicles returned for buy-back within the first six months, CM now agrees to purchase 50 per cent: of the first 500 vehicles and 100 per cent of vehicles in excess of 500.

The Guaranteed Value Plan remains the same as last year.

The fleet program for Lincoln-Mercury remains basically the same at last year as follows.

COMMERCIAL AND LEASING

GUARANTEED VALUE PROGRAM

The guarantee is in addition to the fleet allowance. There is no enrollment requirement. Pay-oft is made on ears kept in service 6 to 36 months. Guarantee value is based on the last issue of AMR of quarter. There is also a Guarantee Value Plan for Lincoln Continental (excludes the Mark III).

DAILY RENTAL

The repurchase plan remains the same as last year. On straight allowance, the following are given on. vehicles purchased before June 30, 1970.

In summary, this plan is 100% repurchase by the Lincoln-Mercury Division depreciation is figured on a daily-rate basis. There is also an opportunity to select rebate allowances in lieu of repurchase.