Chrysler Capital on pace to hit first-year volume target

Article by Christian A., on March 27, 2014

Chrysler Capital, the private-label preferred finance company for Chrysler Group, is one pace to achieve a first-year volume target on May 1 that will allow it to renew its contract with the US carmaker. The target was announced in an annual report recently filed by Santander Consumer USA, which in collaboration with Chrysler Group launched Chrysler Capital on May 1, 2013. Chrysler Capital offers prime and subprime auto loans and leases for Chrysler, Dodge, Fiat, Jeep and Ram truck dealerships as well as wholesale financing for dealers.

Santander Consumer USA replaced the carmaker’s former preferred lender, Ally Financial. According to the report, Chrysler Group could cancel its current contract if Santander Consumer USA fails to achieve target figures for its share of total Chrysler volume. From May 1, 2013, to Dec. 31, 2013, Santander Consumer USA originated more than $7.5 billion in Chrysler Capital auto loans as well as more than $2.4 billion in Chrysler Capital leases -- representing a 26.4-percent penetration rate on Chrysler’s total volume for the period.

Chrysler Capital targets to hit a penetration rate of 31 percent for the first year, 44 percent in the second year and 64 percent in the fifth year. In exchange, Chrysler Capital is entitled to limited exclusivity on Chrysler Group incentives, like loan and lease incentives. Since launching Chrysler Capital last year, Santander Consumer USA’s mix includes 30-percent prime-risk loans for the last eight months of 2013. In the full year 2013, Santander Consumer USA managed to more than double its auto loan and lease originations to around $19 billion, according to the report.

If you liked the article, share on:

Comments

Recommended

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries