Yeah, we just heard Chrysler Financial will no longer be offering auto leases. We're just as stunned as everyone else. Hit the jump for the full report and our analysis including what this means for Cerberus-owned GMAC.
Follow up on WSJ report that Chrysler will no longer offer auto leases through its lending armJalopnik Snap Judgment: We'd heard Chrysler Financial was having a tough time as of late what with all of those default loans and oh yes, the resale values of trucks and SUVs dropping like a rock. This is only surprising from a shock value perspective, but what else should we expect? Guess the days of a cheap lease deals on a vehicle are now gone with the winds of higher fuel economy.
As mentioned at 14:24, Chrysler has started telling dealers it will no longer offer auto leases through its lending arm Chrysler Financial, people familiar with the matter said on Friday. Chrysler is expected to brief dealers formally later today in a conference call, these people said. The move comes as auto makers and their financing units have been piling increasing losses stemming from leases, mainly as a result of falling resale values of trucks, sports-utility vehicles and other less fuel-efficient models that many consumers now shun.
What concerns us more is — doesn't Cerberus also own a controlling stake in GMAC? What does this mean for them? Will they suddenly no longer be offering lease loans either?