Any idea why Chrysler is using CF for May APR Program?

[XDCX]

I was surprised to see that Chrysler's offering a subvented APR program through Chrysler Finance for the rest of May. With all the EFT restrictions CF has in place I was under the impression they were tight on cash and not adding to their loan portfolio.

Any idea why Chrysler decided to use CF instead of GMAC?

Is CF stepping up and buying deals or is this primarily a marketing effort?

[F&I Pro]

XD, what you're seeing must be in your market area, in the SEBC, no rates for CF and per GMAC reps visit today, GMAC not offering any to Chrysler dealers at this time

[XDCX]

XD, what you're seeing must be in your market area, in the SEBC, no rates for CF and per GMAC reps visit today, GMAC not offering any to Chrysler dealers at this time

Wow, that's strange. It was on DealerConnect yesterday and it appears to be a National Program.

In fact, I just noticed that Automotive News has a story about the new 0% APR CF program too. I wonder if any of the BC's "opted-out" because they have some other program in place?

[Granch]

We have it, subvented 0% through cfc on specific 08's up to 72...
100% LTV.

in lieu of a ton of dealer cash...

I have no 08's that qualify..

[XDCX]

Granch - thanks for the update. :)

I guess the fact that it's limited to certain 08 models and the dealers have to give up Dealer Cash, this 0% APR program is mostly for marketing purposes.

I was just surprised to see Chrysler was using CF - I thought everything going forward was going to be limited to GMAC.

[CL Pgh]

Got it yesterday in mabc. Definitely weird that dead-ol CFC suddenly has a heart beat. It won't last long... they've already signed the DNR. :D

[dealer3100]

"Got it yesterday in mabc. Definitely weird that dead-ol CFC suddenly has a heart beat"

Well its either do this or CFC is on the hook for all the left over 2008's. Franchise agreements state that Motors must buy the current model year inventory. Out in the West BC most vehicles were being sold 30% less than Invoice. They keep the dealer cash/ Rebate and essentially write down the rate and save themselves thousands of $$$$ compared to liquidating the remaining 2008 inventory at the auction.

[XDCX]

Well its either do this or CFC is on the hook for all the left over 2008's. Franchise agreements state that Motors must buy the current model year inventory.

Normally I'd agree, but bankruptcy has allowed Chrysler to break the franchise agreements and walk away. The only way CF would get stuck with the vehicles is if the dealer goes under - which is a genuine risk. If that were to happen, CF would get stuck with ALL the vehicles since the factory wouldn't be repurchasing the 2009s.

To your point, however, it's to CF's benefit to have the OLDCO dealers sell down their inventory as much as possible. CF would take a major hit if they had to liquidate a large portion of the OLDCO units because of dealer bankruptcies.