Jalopnik Snap Judgment: As we expected, Chrysler is going to try to bring the monthly cost of purchasing down to the same level at which leasing used to be. The key word is "monthly." Consumers will still be paying more in the long run by purchasing a vehicle than they may have through a carefully negotiated lease. But no matter how it's viewed, excluding leasing from the mix is going to sell more small, inexpensive vehicles to the detriment of more expensive offerings. Chrysler is just trying to prevent consumers from going elsewhere for them.

Auburn Hills, Mich. - As the market makes a shift from leasing to retail purchasing, Chrysler LLC today announced that in August the Company will repackage its incentives to make purchasing a vehicle more affordable than ever. The new strategy includes 72-month finance deals on an expanded range of compact, mid-size and full-size vehicles. The program creates retail payments similar to 36-month lease payments, and lower than previously offered finance payments. With these new incentive offers, customers can get lower payments with the benefits of ownership.

The Company is able to achieve this by repackaging incentive resources from leasing to retail. Helping achieve these low-finance payments are special retail finance rates and a bonus consumer cash program in which customers can now receive up to $2,000 cash back on select retail purchases when financed through Chrysler Financial.

"As part of our annual August model-year clearance, we are leveraging the move from leasing to retail purchases to offer our customers the best deals of the year and make buying as affordable as renting," Vice Chairman and President Jim Press said. "We have re-packaged our incentive spending typically spent on leasing into retail purchase packages to lower monthly payments on select vehicles from the Dodge Caliber and Dodge Charger to the Chrysler Town & Country and Jeep® Liberty. With the model year ending on 2008 vehicles, the time to buy has never been better."

Returning lease customers will receive a Lease Loyalty incentive up to $750 for use towards the retail purchase of an eligible new Chrysler, Jeep or Dodge vehicle. The disposition fee, up to $425, will be waived by Chrysler Financial.

Special deals for August also include the continuation of 0 percent APR for 72- month deals on the Dodge Ram, Dodge Durango, Chrysler Aspen, Jeep Grand Cherokee and Jeep Commander.

For those customers who still wish to lease a Chrysler, Jeep or Dodge vehicle through an independent financial institution, they can take advantage of Chrysler's Customer Cash Allowance on select vehicles up to $2,000.

The Company also announced its "Shop 'Til You Drive Sales Event" sales promotion campaign consisting of new television ads, radio spots, a new national print campaign and Internet promotions. These initiatives are intended to substantially increase awareness and consideration levels of retail purchases, offering lower monthly payments among the Chrysler, Jeep and Dodge brands.

Option One: Kick yourself. Chrysler flirts with bankruptcy at least once every decade, so what were you thinking not selling out when you had a chance? Did you really think it was going to be different this time? You have no one to blame for your declining profit margins but yourself. And possibly Dieter Zetsche.

Option Two: Line up alternative forms of financing. There's this guy we know named Tony. He lives down off Cass Avenue in Detroit, and he'll finance pretty much anything you want. Tony'd love to have the business, and the real advantage for dealerships is a significant reduction in paperwork. Cash payments only, please.

Option Three: Buy a pallet of Honda badges. Hondas still sell themselves, so pry all those cash-sapping Chrysler emblems off your lot full of Sebrings and slap the Golden H of Profit on with some emblem adhesive. Will some people know the difference? Sure, but the important thing is: Some people won't. While you're out there, you may as well make some of them VTECs and V12s, you know, for the kids.

[Detroit News]

Follow up on WSJ report that Chrysler will no longer offer auto leases through its lending arm

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?

We're kind of on the fence with this one. Sure the possibility of identity theft is annoying and who hasn't had to deal with a compromised credit card these days, but is this really something to get your panties in a bunch over? First, a data tape was lost. Data, tape. Those with the wherewithal to read them these days probably aren't in the business of trafficking in stolen or lost UPS packages. No, they're too busy running server farms, reading about the latest in iPhone news on Gizmodo and filling out TPS reports in their cubicles. Second, blame Canada blame the Canadian mail system over Chrysler for the slow letter delivery. And if you still want to get in Chrysler's face about something, beat on them about the Sebring. [Windsor Star]