Chrysler Dealers to Get Nonprime Loans through Santander Bank
DETROIT - Seeking to broaden its customer base and add momentum to U.S. sales gains, Chrysler Group on Monday told dealers that it has reached an agreement with Santander Bank to offer financing to customers who don't qualify for prime loans, reported Automotive News. The agreement, with Santander Consumer USA Inc., takes effect Thursday. The bank, the U.S. arm of the Spanish banking giant Banco Santander, will extend loans to customers with nonprime credit scores of 650 or lower. Chrysler is subsidizing the arrangement, although officials of the automaker declined to specify the size or nature of the investment. Chrysler officials said 22 percent of Chrysler customers currently fall into the credit range Santander will cover. Said Kathy Graham, a Chrysler spokeswoman: “Santander specializes in this credit market. They know how to finance it. They don't do prime lending. They have plenty of money. There is not a liquidity issue.” Chrysler said it could add 2,000 sales per month as a result of the new arrangement. About 50 percent of Chrysler dealers already use Santander for used-car financing. Santander can offer loans at a 30 percent savings compared with other lenders, possibly saving customers as much as $3,000 over the life of the loan, Chrysler officials said. Santander was sending its 110 area representatives out to talk with Chrysler dealers this week. Chrysler dealers who don't already use Santander for used-car financing will be sent applications through the DealerTrack communications system. The agreement does not affect Chrysler's relationship with GMAC Financial Services, the bank holding company that acts as Chrysler's captive finance arm. Chrysler sold 329,918 light vehicles in the United States through April, a 2 percent gain over the same four months of 2009. Overall U.S. sales rose 17 percent over the same period. In April, Chrysler sales rose 25 percent, compared with an overall market gain of 20 percent.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →