Filed under: Car Buying, Chrysler, LLC.
Chrysler gets specific about this whole lease business
With all the news swirling around about the downfall of leasing among the Detroit 3, Chrysler has decided to stick Stuart Schorr, Senior Manager, Sales, Mopar and Dealer Communications, in front of the mic to clear up a few things. The first point he makes is that Chrysler LLC dealers can still offer leases to customers from other financial institutions besides Chrysler Financial. While this is true, some of those financial institutions have also backed out of the business of leasing Chrysler vehicles, including Chase Auto Finance. We're not sure how many lease backers that leaves, but the ones remaining will likely be forced to raise lease prices, much like Ford has done with its truck and SUV leases, to protect themselves from losing tons of money when vehicles leased today are eventually turned back in. The second point made by Schorr is that all current leases are not affected and their lease terms will remain in effect. Well we would hope so! Third is that Chrysler Financial will waive the disposition fee if a current lease owner decides to buy his or her vehicle at the end of the lease term. LeaseGuide.com tells us that this fee usually amounts to between $250 and $450. Here's some friendly advice – do not buy your lease vehicle at the end of its contract. Unless you've driven a ridiculously low amount of miles (not likely), your vehicle is worth way less than what Chrysler thought it would be and the disposition fee will not make up the difference. You would effectively be letting Chrysler Financial off the hook for overestimating the car's residual value. Schorr's fourth point is that employee leases and company cars are not affected. Cool, 'cause we were pretty worried about that. At the end of the day, leasing is still a viable option for many people who find the cost agreeable, as we've no doubt learned this past week that the financial institution backing the lease is shouldering the risk. [Source: Chrysler LLC]
From Chrysler's Firehouse Media Blog
Stuart Schorr is Senior Manager, Sales, Mopar and Dealer Communications
Given the media interest in vehicle leasing, I wanted to take this opportunity to give more details on what customers can expect from Chrysler and their local dealers. Steven Landry, Chrysler Executive Vice President of North American Sales, elaborates in the video above.
1) Chrysler's dealers are still able to offer customers lease financing arrangements with other financial institutions, separate from Chrysler Financial.
2) Current vehicle owners, Chrysler employees and retirees with leased vehicles through Chrysler Financial will not be affected by this shift, and the terms of their contract will remain in force. Chrysler Financial will continue to support and service current Chrysler, Jeep and Dodge lease and balloon-contract holders.
3) Should current lessees purchase their existing lease vehicle, or a new Chrysler, Jeep or Dodge vehicle at the end of their existing lease, Chrysler Financial will waive the disposition fee. Chrysler is also offering a loyalty bonus of up to $750 incremental to most other incentives with the purchase of a new vehicle. Chrysler wants to keep these customers in our family!
4) Chrysler employee lease/company car programs for current and retired salary Chrysler employees, in which vehicles are obtained through the company, are not affected.
_opt_thumbnail.jpg)
Reader Comments (Page 1 of 2)
AngeloD 10:09AM (7/30/2008)
Why the use of the rusty logos for the American companies in nearly every Autoblog report on their financial woes?
It seems like some kind of juvenile cheerleading for the demise of these companies.
Why any car hobbiest would wish for Ford, Chrysler, or GM to go out of business is beyond me. We all lose when our choices in cars become more limited.
Reply
bakka 10:28AM (7/30/2008)
AngeloD
I don't think anybody wants any of the Detroit 3 to go under. What has a lot of the AB ers PO'd is the huge mistakes these guys keep making.Just take a look at what has happened over the years from 1980 onwards. Yes they were building too many big trucks and SUV's, and the public did buy them. But who lobbied the government to keep these behemoths from the CAFE standards? Detroit ! These guys really just don't seem to know what they are doing. Why is Chrysler is financial problems AGAIN? Didn't Ford go through a financial crises in the 1980's? While Toyota was busy building cars,Ford wanted to buy up Volvo, Aston Martin, Jaguar, and Range Rover and create a Premium Brand! Why didn't they just stick to building cars?
I certainly don.t want to see Detroit go broke, but they are their own worst enemy.
Seminole 10:57AM (7/30/2008)
The logo is back from when Chrysler was having better days. Now things are serious and their once market domination has deteriorated (represented by the rust).
It is not cheerleading for the collapse of the Big3 but rather a symbolic comment on the current condition of the industry.
azzo45 12:21PM (7/30/2008)
I tend to agree with Angelo's observation. Readers of AB are well aware the Detroit 3 (especially Chrysler) are in a world of $h*t (self imposed or not).
Rusted out images comes off like some bad, inside joke. It does have the appearance of kicking someone after they are already down & receiving the count.
John 1:54PM (7/30/2008)
I agree with Angelo's sentiment. The rust was cute the first time, but not the second and third.
I fail to understand why anyone who cares about their own job in NA, their financial future, or that of their children would appear to cheer for the demise of Detroit or any other business HQd is NA. Nor do I understand why these people think they should be looked up to when they drive around in their Lexus or Acuras. I sure don't look up to them.
Sure manufacturers like Nasser at Ford made mistakes with his PAG idea, but current management are working on resolving their problems. However that doesn't seem to change the attitude of the oh so clever auto publishers or enthusiasts who think they are so smart for praising foreign manufacturers at the expense of those whom we are dependent on for our future.
What you buy and drive isn't just about your manhood. It's also about your family's future wealth and freedom.
And don't give me any crap about driving foreign brands made in NA. The profits still go to countries that will not give a dam about our future.
Richard Warren 10:20AM (7/30/2008)
"With all the news swirling around about the downfall of leasing "
The only thing swirling is the press and stupid comments..
Reply
Juan 10:34AM (7/30/2008)
I sure hope the American car companies do succeed. I'm not old enough to remember the "good old days" but I sure would not want to see ANY company go under that has been around since nearly the beginning of automobiles themselves.
And it truly does baffle me to see how Americans can wish for one of their home team companies to go under. I just don't get it...
Reply
garlinski 10:44AM (7/30/2008)
The Big 3 got drunk on the profit margins and now are suffering from a horrible hangover from it.
Reply
AZMike 11:17AM (7/30/2008)
"drunk on the profit margins"?
any of those Japanese companies who built factories here is make big trucks and SUVs having a little "love hangover"?
you might want to ask a Toyota dealer which margin they would prefer; the one on a Yaris, or the one on a Sequoia.
AZMike
garlinski 12:03PM (7/30/2008)
Last I knew, or read, was that Tundra's are piling up on lots. I'm sure they made a killing on leases of the trucks like the Big 3, but somehow they are still moving the steel off the lots. I drive by a Ford/Lincoln/Merc dealer in Wilkes-Barre, PA a lot and for some reason their LARGE supply of trucks are still sitting on the lot. They thought they were going to line their pockets with those margins. Toyota delaers are not bulging at the waste with Sequoias like this Ford dealer is with Expeditions. That's the reason they are getting killed on the risidual values. A car is worth less if there are hundreds of thousands of them that are worth less. Toyota seems to know how to react to the situations and makes changes pretty quickly while the Big 3 seem to not know how to get out their own way.
I may be completely wrong on this, but it kind of makes sense. A toyota lot full of Prius', Yaris' and Camry's looks better than a lot full of Explorers, Mountaineers, F150, 250, 350's, Expeditions and Navigators. Who's making sales and who's praying to stay of out bankruptcy?
mroverlord 1:45PM (7/31/2008)
Not sure where you are, but Tundras are growing roots on the lots around here.
garlinski 11:12PM (8/03/2008)
That's exactly what I'm saying.
shaz 11:11AM (7/30/2008)
Yea, if these companies go out of business, maybe these ridiculous soap opera auto blogs will too.
Reply
jfiv 11:13AM (7/30/2008)
If you've leased a car and at the end of the lease you know that the value of the car is going to be a lot less then the residual, you should have no problem calling up the lease company and negotiating a proper buyout. Keep this in mind...
Reply
Toledo Guy 11:38AM (7/30/2008)
In the past, the captive finance arms of the automakers were not will to bend from the buyout price on the contract at lease end. When the banks were more in the leasing business, they were more likely to play "Let's make a deal" at lease end. But I'll be curious to see what Chrysler does when my Jeep lease comes due in November. My local dealer has called my house twice in the past week, reminding me that Chrysler won't be leasing anymore. I just won't be leasing another Jeep this fall. Probably won't own a Chrysler at all.
Inside Lane 11:19AM (7/30/2008)
I'm sorry to say this but in America GM have gone a bit mad. To put it into context, in England and europe Ford .ect are doing great! Our Mondeo looks amazing, our focus is not a block of recycled children and the new Kuga is out of this world. So why are they only just starting to sell our cars out there? You all love the new fiesta; and the Astra has been out here for years badged as a Vauxhall. European cars in the US are the way forwards but for now they only have them selves to blame!
Reply
martin 11:45AM (7/30/2008)
what i find funny is the best selling european cars are from american manufacturers anyway (gm & ford) how can they get it so right in europe yet get it so horribly wrong in america.
Brian 12:40PM (7/30/2008)
The idea for cars in the U.S. for GM was to cheapen them to make them cheaper for the consumer for so long. Alot of the competative product that was going against the imports was selling for less money, therefore you got less of a quality product. But over the last 4 years GM has tried to change their strategy with more in line of what the imports have. They have shown that they can build great cars. (malibu, cts, G8,etc)
But sadley, it ruined some of their reputation. We get the euro Opels over here as Saturns and they still aren't selling great. Ford will have the same problem to when they bring their euros over here.
We have alot of people who have never set foot in any of the D3's showrooms. There are alot of people out there too that think that buying American is "uncool". Or some people who simply won't buy American because it was union built and would never buy one made by the UAW because they think they make too much money. Some parents have passed these ideas on to their kids too. Which is sad because they are missing out on some good stuff.
I've never bought a Japanese car because I've never really found one that I liked. Their just to boring to me and seem more like appliances. This seems more of a reason not buy a car you don't like than some other ones I have mentioned.
THE STIG 11:19AM (7/30/2008)
I'm sorry to say this but in America GM have gone a bit mad. To putit into context, in England and europe Ford .ect are doing great! OurMondeo looks amazing, our focus is not a block of recycled childrenand the new Kuga is out of this world. So why are they only juststarting to sell our cars out there? You all love the new fiesta; andthe Astra has been out here for years badged as a Vauxhall. Europeancars in the US are the way forwards but for now they only have themselves to blame!
Reply
Inside Lane 1:49PM (7/30/2008)
I am a Journalist and I know from experience that cars from the US are built down to a price, but to do this the cars can be nothing better than s**t. Poor quality materials and not enough time put into thinking about the user means as a car it’s not a generally not a nice place to be. I know every manufacture is out to make money but it seems apparent in US cars that profit is all that matters and the customer always comes second.