Dealers who have already signed up with Chrysler Capital say the fledgling financial firm is more attracted to subprime borrowers than competitors Ally Financial or Chase Auto Finance. A 2011 agreement between Chrysler and Chase that provided retail subvented loans through Chase expires Tuesday, April 30.
Beginning May 1, all subvention from Chrysler will be through Chrysler Capital, a spokesman for the automaker said. Grady said he expected that almost all Chrysler dealers would be signed up to write loans with Chrysler Capital by that time.
"Probably the biggest concern is for dealers who are already doing quite a bit of leasing through Ally right now," said Gary Brown, chairman of the Chrysler National Dealer Council and a dealer on Long Island in New York. Brown said the question for dealers is whether Chrysler Capital will be fully ready to go when it opens this week.
"They've hired hundreds of people. It's really miraculous how fast they're trying to get this up and running," said Brown, whose dealership has been piloting Chrysler Capital operations under the Santander Consumer USA name for about the past month with few problems.