Effective May 1, Santander Consumer USA will replace Ally Financial as Chrysler Group’s primary auto-loan provider. The new captive, to be named Chrysler Capital, will finance new-car loans and leases as well as provide wholesale financing to Chrysler, Jeep, Dodge, Ram Truck, SRT, and Fiat dealers.
Since 2010, Chrysler has been using Santander Consumer USA, a unit of Banco Santander SA, to finance subprime buyers. “I think that signals pretty clearly that that relationship’s been going pretty well,” Jeremy Anwyl, vice chairman of auto information provider Edmunds.com, told Auto Finance News. “To some degree, part of the Chrysler rebound, I think, could be attributed to this expertise with subprime.”
Banco Santander has more than 40 agreements with more than 10 automakers around the world. Per the deal inked today, the Spanish bank will provide Chrysler Group with a nonrefundable upfront payment and quarterly share of revenues, a statement about the agreement said.
Until the May 1 launch date, Chrysler Group dealers will continue using Ally Financial and other lenders to finance autos; the Ally contract expires April 30. According to the statement, the agreement with Santander is for 10 years.
Auburn Hills, Mich.-based Chrysler Group formed an alliance with Fiat in 2009.
