Chrysler Capital is now top lender at Chrysler dealerships

Article by Anita Panait, on June 27, 2013

Chrysler Capital is now the top loan writer at Chrysler dealerships, less than two months since it started its operations in May 1, 2013. Chrysler Capital, which is created by Santander Consumer USA and Chrysler Group, provides Chrysler dealerships a wider range of loan choices for customers. Santander Consumer USA owns Chrysler Capital. Likewise, all of Chrysler's subvented loans and leases are now done exclusively with Chrysler Capital.

Since its debut until mid-June, Chrysler Capital wrote around 21 percent of consumer loan and lease originations at 2,500 Chrysler dealerships in the United States. Reid Bigland, head of US sales at Chrysler Group, remarked that the lender's debut is "pretty strong," considering that there exist a number of financial providers from which dealerships could avail from.

Chrysler Capital replaced Ally Financial Inc. as Chrysler's preferred lender on May 1, 2013. Ally, however, still has an active relationship with most Chrysler dealerships.

Prior to Chrysler Capital, Santander only had a single-digit share of business among Chrysler lenders, with primary concentration on subprime loans. Chrysler Capital's credit risk is held by Santander, not Chrysler.

Rich Morrin, executive vice president of business development for Chrysler Capital, remarked that they want data to show that the lender has helped Chrysler dealers grow "through incremental car sales."

According to Bigland, financial providers are aggressively penetrating into automotive finance since asset values of vehicles held up better through the recession than home mortgages. He noted that credit availability now is the "best it has ever been in the history of automotive financing." [source: automotive news - sub. required]

Topics: chrysler, dealership

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