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Old 01-06-2008, 09:26 PM   #1
XDCX
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Default Do any of the Chrysler Finance Leasing Programs Help?

It seems like there are a number of different enhancements that Chrysler LLC and Chrysler Financial offer to encourage leasing - do any of them actually help?

I know that leasing was always big in the Detroit area with all of the Employee Purchase vehicles, but it never seemed like it worked that well anywhere else.

Is anyone out there using Chrysler's Lease Incentives?
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Old 01-13-2008, 06:40 PM   #2
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Default Does anyone use the Lease Pull-Ahead Programs?

It appears that Chrysler/CFC have offered a number of Pull-Ahead programs for Lease Customers in the past.

Have many dealerships been able to use these programs to increase sales, or is it more of a "Detroit thing" that only works for people that have used the Employee Lease program?
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Old 05-21-2008, 05:10 AM   #3
ljbprrfmof
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We have used the pull ahead program to our benefit several times (which would translate to using it often in a bigger store). It works best when the pull ahead is for more than the normal three months. When that happens, the customer is more likely to benefit and make the move. When it is under 3 months, we find it is better to take the lease loyalty rebate in most cases and make the final payment(s). We then can pocket the difference as gross profit.
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Old 05-22-2008, 11:09 PM   #4
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Quote:
Originally Posted by ljbprrfmof View Post
We have used the pull ahead program to our benefit several times (which would translate to using it often in a bigger store). It works best when the pull ahead is for more than the normal three months. When that happens, the customer is more likely to benefit and make the move. When it is under 3 months, we find it is better to take the lease loyalty rebate in most cases and make the final payment(s). We then can pocket the difference as gross profit.
Thanks for the post - great information.

With longer loan terms and increased negative equity it will be interesting to see if leasing makes a comeback.
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Old 06-07-2008, 10:36 AM   #5
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Default Leasing Programs

We are a huge leasing dealership and really take advantage of the different programs available. The Pull ahead program is a great tool to get people into a new vehicle early or if they are way over in mileage. The only factor being that they must be within 12 months of the maturity in their current lease. I feel Chrysler has one of the best leasing programs in the industry. I preach to all my sales people to offer a lease every single time. Just like the F&I guys present 100% of their product 100% of the time!
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Old 06-07-2008, 12:23 PM   #6
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Originally Posted by Stlcarguy View Post
We are a huge leasing dealership and really take advantage of the different programs available. The Pull ahead program is a great tool to get people into a new vehicle early or if they are way over in mileage. The only factor being that they must be within 12 months of the maturity in their current lease. I feel Chrysler has one of the best leasing programs in the industry. I preach to all my sales people to offer a lease every single time. Just like the F&I guys present 100% of their product 100% of the time!
Great post. I think Chrysler and Chrysler Financial have a lot of great programs that dealers never use because they're so damn confusing.

Does your store do a lot of Employee Purchase deals with the Truck Assembly Plant being in your area? I know that the Detroit Dealers did great with some of the Chrysler Lease Programs that were offered to Chrysler Employees.
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Old 07-23-2008, 12:28 PM   #7
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[QUOTE=XDCX;1046]Great post. I think Chrysler and Chrysler Financial have a lot of great programs that dealers never use because they're so damn confusing.

XDCX You are 100% correct. Chrysler's incentives are so confusing it's silly. I have been with the same Chrysler dealer fro 20 years and i am amazed how Chrysler continues to tell the dealer body they are simplifying incentives yet the Chrysler Financial program alone is 28 pages long. I really believe they keep it so confusing so in the event of an audit the can reap great rewards. One audit allows Chrysler to charge back all incentives on a deal if any one incentive is incorrectly claimed. You can cliam a $500 rebate that the customer actually does not qualify for and get charged back that $500 plus say the $5,000 national consumer cash on that vehicle. The rules are so crazy that they actually encourage dealers to cheat. Example certain owner/competetive make rebates that require a customer to own a vehicle for a pre determined amount of time.
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Old 07-24-2008, 10:08 AM   #8
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[quote=goodone414;1393]
Quote:
Originally Posted by XDCX View Post
Great post. I think Chrysler and Chrysler Financial have a lot of great programs that dealers never use because they're so damn confusing.

XDCX You are 100% correct. Chrysler's incentives are so confusing it's silly. I have been with the same Chrysler dealer fro 20 years and i am amazed how Chrysler continues to tell the dealer body they are simplifying incentives yet the Chrysler Financial program alone is 28 pages long. I really believe they keep it so confusing so in the event of an audit the can reap great rewards. One audit allows Chrysler to charge back all incentives on a deal if any one incentive is incorrectly claimed. You can cliam a $500 rebate that the customer actually does not qualify for and get charged back that $500 plus say the $5,000 national consumer cash on that vehicle. The rules are so crazy that they actually encourage dealers to cheat. Example certain owner/competetive make rebates that require a customer to own a vehicle for a pre determined amount of time.
I totally agree.

In fact, I think if you had a large volume store you could probably hire an "Incentives Manager" and pay that person $40K/year just to review each new car deal and ensure that all of the incentive were claimed. For most dealerships I think that person would more than offset their wages by finding and correcting incentive errors.

The one I always used to wonder about was Price Protection for Sold Orders. I wonder how many dealers actually go through the process and file a claim to cover the price increase? If it were more than 25% I'd be amazed.
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Old 07-26-2008, 06:41 AM   #9
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Great point. We do file price protection but we are a small dealer and typically only have 2-3 sold orders a month coming in. I agree about an incentives manager for a high volume store. I don't know about other automobile manufactures, but Chrysler lies awake at night figuring out how to beat dealers out of incentive money.
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Old 07-28-2008, 06:46 AM   #10
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Originally Posted by goodone414 View Post
Great point. We do file price protection but we are a small dealer and typically only have 2-3 sold orders a month coming in. I agree about an incentives manager for a high volume store. I don't know about other automobile manufactures, but Chrysler lies awake at night figuring out how to beat dealers out of incentive money.
I've always wondered if Chrysler was more difficult to do business with than other manufacturers. I've asked Dealer Principals that own multiple stores that question and the general response seems to be that all manufacturers have their issues.

That's one of my main goals for this forum is to make it a place where dealership people can go to get quick/accurate answers to their questions.
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Old 07-28-2008, 06:50 AM   #11
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Default Well I guess that this thread is dead....

Given Chrysler Financial's statement last week that they're leaving the leasing business I guess that this thread is officially dead.
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