03-27-2012, 12:05 PM | #1 |
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Will the Chrysler Dealers get a new Captive Lender?
The possible break-up of Ally (bankrupting ResCap and splitting off the online bank and the automotive operations) is in the news and frankly I'm betting it's already a done deal. The Treasury (which owns 74% of Ally) knows they can't float an IPO for Ally and the company has little value given the obligations they're exposed to with ResCap.
The purpose of this thread, however, is to ponder what Chrysler will do for a Captive Lender if Ally is sold to General Motors. Chrysler already has a "side by side" relationship with Chase Bank and Chrysler's endorsed Santander Bank as a source for "near prime" loans. TD Bank is an obvious choice given their DNA (TD Bank bought Chrysler Financial from Cerberus) and Wells Fargo has also been mentioned. What's your bet, will Chrysler need to find a new captive and if so, who will it be? |
03-27-2012, 12:59 PM | #2 |
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our biggest hesitation to td is the old cfc snakes employed by td today. they became the worst form of life in their last two years and that memory will never be gone. if i couldnt find someone else i may just get out.
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03-27-2012, 02:37 PM | #3 |
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If TD is full of old snakes as you say...that should fit in perfectly with Chrysler. Chrysler is not exactly exempt from pulling a fast one, especially when it comes to the treatment of it's dealer body. There are still plenty of oldco exec.'s still roaming the home office
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03-27-2012, 02:44 PM | #4 |
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I guess I am in the minority here. CFC was always there to help me and my CFC reps were FAR superior to most of the reps and mgrs. I did business with at Chrysler. Yes there were a few bad apples with CFC (there is with every business) but I would gladly do business with old CFC anyday!
Would Chase be a better fit nationwide than TD, Ally, etc.? |
03-27-2012, 04:04 PM | #5 |
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I agree with chryslersrt8, CFC always treated us well.
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03-27-2012, 04:51 PM | #6 |
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I will have to agree too! CFC always treated me Positive Attitude. They would bend over backwards to get what ever deal done I needed. GMAC would Auto Decline them. I was at a dual Chevrolet/CDJR combo store and CFC was my bread and butter. Always butted Heads with GMAC/Ally and still have a HARD ON for them to this day. Once had a GMAC/Ally rep tell me that my store should have not be sending business to them since we were small volume. And could not understand WHY we did business with each other. That pi$$ed off big time along with my SM. That comment was made in 2010.
I also enjoyed CFC E Contracting System my rep ask me to Pilot that program for our district. The good old days.... |
03-28-2012, 06:58 AM | #7 |
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Our Chase rep was in said it's a done deal.
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03-28-2012, 09:10 AM | #8 | |
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Quote:
The other concern is Chase's lack of interest in leasing. While Chase does provide leasing for their "private label" brands (Mazda, Subaru, Land Rover, Jaguar) they've indicated they have no interest in offering lease products to the rest of their dealers. It would be interesting to hear what a Mazda dealer thinks about having Chase as a captive. In the old days when Mazda was supported by Ford Motor Credit I remember hearing that having access to FMCC was one reason a non-Ford dealer kept his Mazda franchise. |
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03-28-2012, 09:16 AM | #9 |
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04-10-2012, 01:19 PM | #10 |
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Chrysler must give notice to Ally by the end of the month
The Detroit News reported that Chrysler needs to notify Ally by the end of the month if they want to terminate their current relationship. Chrysler's current agreement with Ally continues through April, 2013. I assume the agreement is extended for one year if Chrysler does not indicate they want to break the agreement. Here's a link to the report in The Detroit News - click here
My bet, for what it's worth, is Chrysler has no intention of breaking their relationship with Ally because they do not have a succession plan in place. I further speculate that the notification issue is a "non-event" because Ally will likely be split-up and sold off long before April, 2013 arrives. |
04-11-2012, 11:54 AM | #11 |
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I for one hope that if they do dump ALLY...I can still use them, they have been very strong for me with commercial lending....retail rates on commercial vehicles in only the business name in most cases.
They have been very easy for me to work with and I have 0 complaints. But...I don't do many retail deals so I may be waaay off base. |
04-12-2012, 11:21 AM | #12 | |
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Quote:
While there are some examples where an OEM's captive will provide financing to off-brand dealers all of the situations I can think of existed because of a partnership between two OEMs. As an example, Chrysler Financial used to provide financing for Volkswagen dealers and Ford Motor Credit used to provide financing for Mazda dealers. To the extent that GM and Chrysler are direct competitors I cannot imagine GM would want Ally to continue to have a tie to the Chrysler dealers. On a related note, I was somewhat surprised by the figures I read regarding Ally's penetration with Chrysler dealers:
Here are the sources for the information posted above: |
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04-12-2012, 03:07 PM | #13 |
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When you consider the longevity of Chrysler in Ally portfolio vs. GM stores maybe that's why. Longer contracts from longer ago. Also how few deals when Ally first started as well as leasing portfolio for Chrysler vs. GM. Our store wasn't involved heavily with Ally finance until recently. I know a number of dealers that use Chase instead of Ally.
On the other hand was the ABC program that kicked off in March (successfully at least in the Midwest) a way to entice Chrysler to stay with Ally??? |
04-12-2012, 07:45 PM | #14 |
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My ALLY commercial rep was in today..he said they will always want my commercial business regardless of what happens...and of course he said everything we read in the press is bs...
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04-13-2012, 05:17 AM | #15 |
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Be VERY careful of people that use the terms always and never....they are both a very long time.
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