Chrysler Capital has launched a dealer-loyalty program that offers participants longer car loans and lower rates but requires them to get a quote from Chrysler Capital for every customer loan.
The initiative, called the Precision Support Program, was introduced to Chrysler Group dealers last month when Chrysler Capital unveiled Chrysler Capital Consulting.
That's a data-driven service to help dealers increase finance and insurance profits and build loyalty with car buyers, the company wrote in a March 12 letter to Chrysler dealers.
"You told us that a loyalty program is an important part of the trust- and relationship-building process," Chrysler Capital wrote in the letter obtained by Automotive News.
A Chrysler Capital spokeswoman confirmed the letter but declined to comment.
Chrysler Capital is a full-service finance program managed by Chrysler Group and Santander Consumer USA Inc.
A year ago Chrysler Group replaced Ally Financial Inc. with Chrysler Capital as the primary lender to Chrysler dealers and car buyers. Chrysler Capital offers customers subsidized leases and other incentives, such as 0 percent and low-interest loans.
|Chrysler Capital's dealer-loyalty program offers perks in exchange for a chance to win every customer loan.|
|Source: Chrysler Capital|
The Precision Support Program should strengthen Chrysler Capital's ties to Chrysler dealers, said David Kelleher, owner of David Auto, a Chrysler-Jeep-Dodge-Ram dealership in suburban Philadelphia.
Kelleher, a member of the Chrysler National Dealer Council, said the requirement to submit all potential vehicle loans to Chrysler Capital for a quote shows the lender's commitment to be a strong partner with dealers. He said he also was comfortable with Chrysler Capital's demand for sales reports from participating dealers so the lender can better understand why it was chosen or rejected for a customer's loan.
Still, the program's benefits aren't enough for David Auto to switch from the Ally Dealer Rewards program.
"I'm willing to stay close [to Chrysler Capital], just not ready to get married," said Kelleher, whose dealership sold 142 new vehicles last month.
Among the advantages of the Chrysler Capital loyalty program are a higher flat fee -- $100 more for a standard, nonsubvented contract -- and up to 75 months of financing across consumer credit tiers.