Chrysler Anticipates Leasing Uptick With Santander Venture
Once Chrysler Capital launches May 1 as a joint financial venture with Banco Santander SA, Chrysler Group expects dealers to nearly double their volume of new-car leases.
At just about 10% of sales, Chrysler’s leases are below the 18% industry average. Peter Grady, the carmaker’s vice president of network development and fleet, doesn’t foresee the company trying to move models with sluggish sales via leasing to beat that average, though.
Grady feels the venture will allow Chrysler to assert itself in segments it currently doesn’t focus on, as well as offer competitive subvented leases in more segments, like midrange minivans or the redesigned Chrysler 200, which is expected to be unveiled next year.
As the sole Detroit carmaker without its own captive, the partnership will use Chrysler’s name and Santander’s balance sheet for financing, wholesale and floorplanning to the company’s 2,500 dealers, which include Fiat. Chrysler Capital will also offer real estate and commercial loans for those dealers.
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Chrysler Capital replaces Ally Financial May 1 as the automaker’s primary lender, but dealers can still work with other lenders if they want. Santander does consumer lending at many Chrysler dealerships already and will continue to do so under its own name. |
