What percentage of your new car business is going to Chrysler Financial?

[XDCX]

As I mentioned in another thread, there was an article in the Wall Street Journal last week indicating that Chrysler Financial could run out of money to lend in the middle of this month if they don't receive more TARP money.

One portion of the article reported that CF currently finances 90% of Chrysler's new vehicles. I thought that number seemed high so I sent an e-mail to the reporter who sent me a note back indicating he's confident the percentage is correct.

What percentage of your new car business went to CF last month?

To be clear, my objective is not to discredit the story in the WSJ. My objective is to determine what percentage of Chrysler's new car business CF is funding and what plans dealers have in place if CF's funding runs dry in the middle of this month.

[squish]

according to cf connects dealer reward report we did 0% in Jan, 50% in Feb and 79% in march. does any of 90% reflect fleet/rental business?

[XDCX]

according to cf connects dealer reward report we did 0% in Jan, 50% in Feb and 79% in march. does any of 90% reflect fleet/rental business?

Thanks for the information. :)

Concerning how the 90% figure was calculated, that's still unclear. The inference is that it's just retail, but who knows?

The reporter from the WSJ was great, he wasn't argumentative, he just felt confident his numbers were correct. If he is correct, then I'm worried about what will happen if CF runs out of money - are the banks and credit unions ready to fill the void again?

[CL Pgh]

One part of the story I don't agree with is this excerpt: "In the first two weeks of March, more than 90% of Chrysler vehicle sales were backed by the finance company, the person familiar with Chrysler Financials operations said."

Is it possible that CF's been buying 90% of Chrysler's deals? I'd be surprised if they were buying 50% of the paper.

This 90% figure falls under the category: Figures Lie & Liars Figure!

For CF, the far majority of first two weeks of March was spent “booking” the last week of Feb. business (remember we had 0% @ 48mons.). I think most can agree Chrysler bought deeper & faster at the end of Feb. vs. any other time in the last six months. Now take those “bookings” that happened for CF vs. the first two weeks of NVDR’s… and you could get a 90% penetration for CF.

Guessing Here:
These figures most likely are in CF’s current request for additional TARP/Government funds and that’s why this reporter is standing behind them. Neither him nor any of the Politicians actually understands what happens in this business and they simply rely on the information provided. Scary ain’t it!!!

[XDCX]

CL, you're awesome - I really feel fortunate to have you as a member here. :)

That makes perfect sense. CF received a surge of applications at the end of February in response to the 0% APR incentive but didn't book the deals until March. Since the first two weeks of any month are typically slow, the figures suggest a 90% penetration rate.

Concerning CF and the WSJ reporter, I agree that CF has an agenda and they may have manipulated the data to make their TARP application more persuasive. Concerning the WSJ reporter, perhaps I'm biased, but I think he's digging for the facts.

To the rest of our members who read this thread, please post your current CF penetration for new vehicles.

[CL Pgh]

Actual new vehicle sales vs. deals finance thru CF. Am I reading this quote correct?
Jan. 35%
Feb. 81% (see what 0% @ 48 did)
Mar. 41%

1st quarter avg. 54%

Didn't mean to side track thread. The reporter standing firm on his quote made think about these numbers from an individual’s point of view who doesn’t understand… rather than someone who knows what is and isn’t happening in this business. (at least I use to know what was happening in this business :mad: )

[goodone414]

According to the April 1st Webcast Chrysler Financial financed 36,386 units in March for a 52% penetration rate. This compares to 28,000 units in February for a 43% penetration rate. As a dealer we had a 1st quart penetration rate of 70.59% with a March penetration rate of 83%

[XDCX]

According to the April 1st Webcast Chrysler Financial financed 36,386 units in March for a 52% penetration rate. This compares to 28,000 units in February for a 43% penetration rate. As a dealer we had a 1st quart penetration rate of 70.59% with a March penetration rate of 83%

Thanks for the information - I didn't get a chance to watch the telecast. :)

Those penetration rates for CF make much more sense - that's the real world picture. Although it's not 90%, your numbers prove that CF is still financing a lot of vehicles for Chrysler dealers. I sure hope they're able to get more TARP money so they can continue to issue loans.

[MICDJDLR]

We're a rural michigan CDJ store. Of the 21 new vehicles (mostly minivans and rams) that we sold in March 14 were financed by CFC, 4 were cash deals and 3 were financed by a credit union. Just want to say, luv the site & the info....keep up the good work.

[XDCX]

We're a rural michigan CDJ store. Of the 21 new vehicles (mostly minivans and rams) that we sold in March 14 were financed by CFC, 4 were cash deals and 3 were financed by a credit union. Just want to say, luv the site & the info....keep up the good work.

Welcome to DealershipForum :wave:

It's always great to have a new member, especially someone who posts in a thread on their first day.

Concerning CF's penetration, it appears CL has figured out how the 90% penetration rate was calculated and we've established that it doesn't reflect reality.

That said, CF is still an important source of funds and I hope they get some additional TARP money.

Thanks again for your post and I hope you'll become a regular contributor.

[CL Pgh]

First: Welcome aboard MIC... :D
Jump in anywhere... we need all the help we can get!

Second: CF must be officially out of money!!!
Husband & Wife signing... 736 & 842 FICO's... $10,000 down (no trade) ... both with years at same employer and CF conditioned them! This is the worst condition/decline I've seen our store have in over six months. :eek: Needless to say Chase pick'd them right up.

[XDCX]

Second: CF must be officially out of money!!!
Husband & Wife signing... 736 & 842 FICO's... $10,000 down (no trade) ... both with years at same employer and CF conditioned them! This is the worst condition/decline I've seen our store have in over six months. :eek: Needless to say Chase pick'd them right up.

That's amazing - I guess now we know why CF is going to layoff some of their employees; they're running out of money. :(

The irony is Chase is one of the banks that's alleged to be holding up the Chrysler bond negotiations, yet Chrysler's funneling business to them.

How can the dealers boycott Chase if CF isn't buying 800+ FICO customers?