With more than 20% of its potential customer base falling into the less-than-650 credit score range, Chrysler Group LLC has ramped up its financing to that sector, subsidizing loans made by GMAC and Santander Consumer USA, AutoFinanceNews.net has learned.
Earlier this week, Chrysler inked a deal with Santander to offer financing to subprime customers at lower-than-market rates. GMAC will offer a similar program to Chrysler buyers, in a subvention effort that starts today, GMAC told AutoFinanceNews.net.
“Chrysler Group LLC has a long-term contractual relationship with GMAC Financial Services as the company’s preferred lender,” said Chrysler spokeswoman Kathy Graham. “Chrysler Group is very pleased with the relationship with GMAC and the services they provide to both our dealers and consumers.”
“Santander Consumer USA has extensive expertise with nonprime consumer auto loans and is a complement to our continued partnership with GMAC,” she added.
The subprime subvention programs are part of Chrysler’s goal to “provide a wide range of financial options for consumers interested in purchasing a new vehicle,” Graham said. Specifically, Santander will offer rates as low as 7.49%, in a sector typically marked by rates in the 16%-to-18% range, she said. GMAC would not comment on the rates it would offer as part of this program.
GMAC has been a “full spectrum” lender on Chryslers since GMAC assumed the retail and floorplan financing for Chrysler vehicles last year. This new program comes at Chrysler’s “initiation,” said a GMAC spokeswoman.
Chrysler estimates that these programs will enable it to sell another 2,000 vehicles per month. In April, Chrysler sold 95,703 vehicles, up 3% from March and up 25% from April 2009.
