DealershipForum.com - Possible return of Chrysler Leasing

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Possible return of Chrysler Leasing

This could be good news to get back all those consumers we are losing dailey to the import brands.

Source:Foxnews

Quote:

Chrysler Planning to Resume Leasing

Friday, September 11, 2009

Chrysler Group LLC is preparing to resume auto leasing, according to a dealer briefed on the plans, more than a year after the auto maker was forced out of the business and three months after it emerged from bankruptcy.

The company plans to make a decision next week on the timing of the return, though new leases may not be offered until later in the month, according to the dealer. Chrysler spokeswoman Kathy Graham said the automaker is seeking to return to the leasing business. "We are actively investigating that market but we don't have anything to announce today," Ms. Graham said.

Chrysler, which merged most of its assets with Italian auto maker Fiat SpA in June, is seeking to revive its business after going through a federally funded bankruptcy process that ended in June.

Chrysler now relies on GMAC Inc. for its dealer financing. It used to rely on Chrysler Financial, a finance company that was owned by the auto maker and became an independent company in 2007 for auto leases, consumer loans and dealer financing. Chrysler, as part of its bankruptcy reorganization, made GMAC its preferred lender.

GMAC recently resumed offering a consumer leasing product for select GM vehicles. The company said it is working with auto makers to evaluate options for adding a leasing option for other makes and models, including certain Chrysler vehicles, and declined to comment further.

They will be doing select models, like Grand cheroke, Liberty, and minivans from what i've heard. Which is good news...

I hope this goes through soon. I have 3 people who have come in lately asking on leasing who I had to put on pause- Mark W.

Quote:

Originally Posted by Granch (Post 10514)

They will be doing select models, like Grand cheroke, Liberty, and minivans from what i've heard. Which is good news...

About the same as I have heard... a Ram truck, a Town & Country, a Grand Cherokee. I did hear no sooner than Oct. and maybe Nov.. :confused:

I read in Automotive News that the decision to return to leasing is dependent on the new ALG Lease Residuals. The article indicated that a program could be launched on 09/18/09 at the earliest.

The rest of the article was mostly re-hash of what's been covered in this thread. The one surprise, however, is they listed the Dodge Nitro as a possible lease vehicle. I don't know about the rest of the country, but on the West Coast the Nitros are virtually sales-proof.

I'd hate to guess what the Nitros will have for a residual.

That said, the ability to offer leasing again on Chrysler vehicles would be great. :)

One good sign, a rather odd one I thought was ALG bumping the residual 7 points on an 09 Gr Cherokee this month. Wierd time to do it, but it shows the market is getting stronger on them.

Leasing is Back
Chrysler, Jeep® and Dodge Return to Leasing–Offering Consumers More Financing Options
Auburn Hills, Mich, Sep 16, 2009

Chrysler Group LLC today announced it will offer a leasing option for U.S. customers on all 2010 model year Chrysler, Jeep® and Dodge vehicles through Chrysler’s preferred lender, GMAC Financial Services.

“We are pleased to re-enter the leasing market so we can offer customers the opportunity to lease vehicles at rates competitive with the marketplace,” said Peter Fong, President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “Our ability to offer additional financing options will benefit consumers who have long been fans of leasing and appreciate the flexibility this financing option gives them.”

Effective Sept. 17, 2009, Chrysler, Jeep and Dodge will offer leasing options for all 2010 model year vehicles in the United States. Featured vehicles with special lease rates through Sept. 30, 2009 are:
• Chrysler Town & Country
• Dodge Grand Caravan, Ram 1500 and Journey
• Jeep Wrangler and Liberty

Chrysler, Jeep and Dodge also offer the following incentives, which are valid through Sept. 30, 2009:

2009 Model Year Vehicles:

Chrysler Group is pleased to offer 0 percent financing for up to 72 months through GMAC Financial Services or up to $4,500 Consumer Cash on select 2009 model year Chrysler, Jeep and Dodge vehicles.

2010 Model Year Vehicles:

On select 2010 model Chrysler, Jeep and Dodge vehicles, limited Consumer Cash of up to $3,000 or attractive financing rates through GMAC Financial Services are available.

Current Chrysler Group vehicle owners are also eligible for $1,000 Owner Loyalty Bonus Cash available to use towards the purchase of select 2009 model year vehicles or the purchase or lease of select 2010 model year vehicles.

My dealer has no idea about leasing???? I asked which vehicles and they said do not know? The press release says.....:rolley:

Jason

Just ran some of the leases, nothing impressive...
i guess time will tell..

Quote:

Originally Posted by jdemonto (Post 10578)

My dealer has no idea about leasing???? I asked which vehicles and they said do not know? The press release says.....:rolley:

Jason

That's one of the reasons I always felt there was a need for a place like DealershipForum.com. :)

While I understand there may be some reasons why a manager may want to shield information from his/her employees, I also believe there are many instances where it's just a function of laziness.

Knowledge is power and I continue to believe that with time more and more people will rely on this site for information which helps them sell more cars and generate more profits.

Quote:

Originally Posted by Granch (Post 10579)

Just ran some of the leases, nothing impressive...
i guess time will tell..

I was afraid of that. :(

Based on past programs, does it appear that the residuals or the money factor is less competitive?

The "Special Rates" are in dealerconnect in incentives under GM tab, just open the smartlease tab

all 2009 and 2010 residuals are in gmacdealer.com, which are pretty much the same us US Banks.

GMAC uses a rate like Ford, not a money factor.

They have underwritten the rate on some of the specials..