Chrysler Expands Lease Offers Under New Pact with U.S. Bank
DETROIT - Chrysler Group has taken another step toward reviving its leasing business by signing an agreement to offer leasing through US Bank, Automotive News reported.
The automaker announced the arrangement in an e-mail to dealers. Dealers now can offer customers two leasing options: U.S. Bank and Ally Financial.
The company is offering leasing only on select models using either finance source: the Chrysler 300 and Town & Country; the Dodge Charger, Grand Caravan, Journey and Nitro, and the Jeep Wrangler and Liberty.
“Starting today, your customers now have a choice of finance sources to lease select vehicles. Special lease rates and residuals are now available through US Bank,” the e-mail said. It is signed by Fred Diaz, Ralph Gilles, Michael Manley and Olivier Francois, CEOs of the Ram, Dodge, Jeep and Chrysler brands, respectively.
“While Ally remains our preferred lender, this new relationship with US Bank will now give your customers a choice in lenders and will continue to allow you to write your leasing deals at the most competitive rates and residuals available in the market today,” the message said.
Ally has financed about 50 percent of all Chrysler Group's retail sales so far this year, according to a company statement.
The move comes a month after Ally Bank announced it was opening leasing to a wider range of customers. Ally lowered the FICO score threshold for lease customers to 620 from 660. A 660 score is on the lower end of prime credit, while a 620 score is on the upper end of subprime.
Chrysler has gradually been rebuilding its leasing business after it collapsed during the credit crisis of 2008. In 2006, when Chrysler Financial was still Chrysler's captive finance company, leases accounted for about 22 percent of the automaker's new-vehicle sales transactions. After Chrysler Financial left the leasing business in 2008, along with most of Chrysler's lenders, the percentage of leases plummeted to under 1 percent of all sales by mid-2009.
Leasing has slowly come back since then, accounting for between 4 and 6 percent of Chrysler sales now.
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 →