Chrysler Leasing Program Could Get a Goose from GMAC
New York. Sun-kissed Crysler Building., originally uploaded by egold (almost back…)
A little over a year ago, Chrysler Financial became unable to renew its line of credit, therefore it became no longer eligible to continue their leasing program. What followed was a loss in market share, and what some say would become the key event that lead to their ultimate decline that would end in a Chapter 11 bankruptcy on April 30, 2009.
Proof of such accusations comes from market share statistics that pegged Chrysler at somewhere around 11.3 percent before July of 2008, dropping sharply to 11 percent in December 2008, and finally tapering off to just 9.2 percent this past August. What can Chrysler do to renew their market share? Start leasing again of course.
Auto News brings us word that Chrysler’s leasing days maybe closer than some would have thought. This is all thanks to GMAC Financial Services, of whom the Obama administration has appointed to Chrysler. Rumors are pointing to a return to leasing as early as this coming September 18th, 2009. Chrysler is waiting on residual value numbers before making the final decision, so at the moment things are still up in the air, according to Chrysler spokespersons.
Just this small move could help dealers push twice as much business through high lease areas, such as Detroit, Michigan. Many dealers complained last summer of losing as much as half their normal volume once their leasing options were stripped from them. Dealers will certainly be looking forward to a return, assuming Chrysler gives the green late later next week.
With the scent of bankruptcy still in the air for Chrysler, they plan on sliding into the leasing scene gradually, with a choice few models, such as possibly the Dodge Ram, Nitro, Journey, Grand Caravan, Jeep Liberty, and Town & Country. While Chrysler has been lagging behind the other former members of the Big Three this summer, this might be their big move to help level out the playing field.
Source: Auto News
