Chrysler Financial is resuming discounted loan rates for Chrysler LLC vehicles, beginning with a 0 percent offer for some 2008 models. The 0 percent program takes effect today and lasts through June 1, offering the rate for 72 months to qualified customers, Chrysler Financial said today in a statement.
Chrysler Financial had stopped giving special rates on retail financing when Chrysler LLC filed for bankruptcy April 30.
Funding for special retail rates comes from automakers, and Chrysler was not providing that money. But the automaker has changed its course, said Chrysler Financial spokesman Bill Porter.
"Chrysler is buying down the rate," Porter said. "I'm not sure what the change of their position is."
Chrysler's bankruptcy plan says GMAC Financial Services will replace Chrysler Financial as the captive lender for the new Chrysler's floorplan and retail financing. Chrysler Financial had floorplanned 62 percent of Chrysler LLC dealers.
GMAC has offered wholesale financing to all Chrysler dealers on a temporary basis, and a majority have signed up. As Chrysler emerges from bankruptcy, GMAC will accept or reject those dealers' floorplan applications using the same financial yardsticks it applies to General Motors dealers.
Now that Chrysler dealers are migrating to GMAC, it isn't clear what role Chrysler Financial will have when Chrysler LLC emerges from bankruptcy.