DETROIT — Chrysler Financial is making it tougher for dealers who do not finance inventories with the captive finance arm.
Under a new policy, non-floorplan dealers who sell vehicles through Chrysler Financial will be reimbursed more slowly for retail and lease contracts than dealers who floorplan with Chrysler Financial. The policy and several related ones took effect Oct. 22.
A dealer who floorplans with Chrysler Financial gets almost instant payment for the vehicle loan or lease, allowing the dealer to pay the floorplan loan. But for a non-floorplan dealership, Chrysler Financial will advance money to cover a loan or lease deal only after paperwork is complete. The delay could be more than a week, dealers say.
Non-floorplan dealers complain the policy will hurt cash flow on retail deals they do with Chrysler Financial, such as 0 percent financing or subvented lease rates.
One dealer, who declined to be named, said the policy would cost him about $6.60 for every day Chrysler Financial held up funding of a $30,000 contract at 8 percent interest. That might seem like a small amount, he said, but it adds up in multiple contracts.