Chrysler Capital is making a big sales push in New York state as the lender’s loan and lease volumes are up 128% year over year for the month of June, according to Experian’s Auto Count data provided to Auto Finance News.
The company originated 5,465 contracts across the state, up from 2,391 the same month the year prior. Chrysler Capital’s month-over-month originations also increased by 35%, which helped propel the company to the No. 7 top lender in the populous state, up from No. 17 a year ago.
Leasing was the main driver of the volume gains as originations rose to 4,763 contracts in June up from 1,597 the same period the year prior.
“Part of the increase can be attributed to higher overall leasing volumes,” a company spokeswoman told Auto Finance News. “New York is a heavy lease state and with leasing up overall our share has increased as well.”
The trend matches with Santander Consumer USA’s year-long push to increase lending to prime consumers, particularly in the Chrysler Capital portfolio. Santander owns and runs the OEM’s captive arm, but Chrysler is currently negotiating a price to buy the unit from Santander to form a “true” captive financial unit.
“We did put a little more bonus cash to work in the quarter, which drove some incremental production,” Santander Consumer Chief Executive Scott Powell said on the company’s second-quarter earnings call. “But for the most part, it’s just working together [with Chrysler Capital], providing better dealer service, being more responsive, kind of working on those same initiatives, which is producing results.”
Overall, loan volumes in New York rebounded following a sharp 22% year-over-year decline in May. Lenders in the state originated 123,873 loans and leases — up 15% year over year.
Originations were up in Texas and Virginia year over year by 1.6% and 9.1%, respectively. However, California and Michigan were down by 1% and 8%, respectively.1 - Reader Likes This Post