By on July 30, 2008

Why are you worried about our leases?  I\'m not.ChryCo NA Sales Veep Steven Landry tells the media not to worry about the company's exit from the lease business. Cause every little thing's gonna be all right. Here are his four little birdies, verbatim [TTAC comments in brackets].

1) Chrysler's dealers are still able to offer customers lease financing arrangements with other financial institutions, separate from Chrysler Financial. [ED: This on the very same day Chase Auto Finance announced it's withdrawing financing for Chrysler vehicles.]

2) Current vehicle owners, Chrysler employees and retirees with leased vehicles through Chrysler Financial will not be affected by this shift, and the terms of their contract will remain in force. Chrysler Financial will continue to support and service current Chrysler, Jeep and Dodge lease and balloon-contract holders. [So no repo man... yet]

3) Should current lessees purchase their existing lease vehicle, or a new Chrysler, Jeep or Dodge vehicle at the end of their existing lease, Chrysler Financial will waive the disposition fee. Chrysler is also offering a loyalty bonus of up to $750 incremental to most other incentives with the purchase of a new vehicle. Chrysler wants to keep these customers in our family! [when a press release throws a spear (!) you know they're desperate]

4) Chrysler employee lease/company car programs for current and retired salary Chrysler employees, in which vehicles are obtained through the company, are not affected. [translation: our execs will continue to get cheap cars]

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14 Comments on “Chrysler Spins Lease Withdrawal...”


  • avatar
    Ralph SS

    So. Question: if the ceasation of leasing, at least to the degree and effect of how it was vs. how it will be at best now, is due to residual values far below the planned value at lease end for Chrysler and GM (and Ford, more or less, too), will companies who’s vehicles do not suffer this malady (Toyota?) change their leasing operations too? Or will they stay the course? Or will they even further leverage this advantage?

  • avatar
    autoemployeefornow

    Company cars for “execs” who have to pay for their lease cars are at 1.9% of wholesale. If you think a lease on a $30,000 car/truck at $570/month (includes insurance) is cheap then I guess your comment about execs continuing to get cheap cars is correct

  • avatar
    tulsa_97sr5

    regarding points 2 and 3, i’d think repo would be the absolute last thing they’d want to do at this point, let that loss hang out there till the last second. I’ll also bet they are going to wheel and deal a lot more than outlined above to convince leasees to buy those vehicles at the end of the lease.

  • avatar
    Conslaw

    I’m currently leasing a 2006 Dodge Grand Caravan. (Not a bad vehicle, actually.) My lease is up February 2010. I wonder whether Chrysler will pay me to keep it by discounting the residual?

    Are there any fair readers out there who have turned in a Chrysler leased vehicle recently? Were they in a dealing mood?

  • avatar
    jaje

    I’m already getting offers from GMAC on my truck lease for a reduced buyout price (expires summer 2009). Truck buyout is $13k at lease end and they are offering $9k but I’ll offer likely $6k (probably all they’d get at the auction) and see if they bite.

  • avatar
    Firehouse

    the Truth is you CAN embed videos from TheFirehouse.biz, just click on the video tab at the top of the page (give it a bit to load) to go to the video library. I tried to include the embed code in this message, but it won’t go. The video can also be seen on the Voices of Chrysler blog at http://www.ChryslerLLC.com, click on the Blog link at the top.

  • avatar
    Airhen

    I suspect that this is about residual values. I’ve been looking at picking up a used car, and there are some real deals right now on slightly used vehicles with average or below average mpg, not mention new.

    Plus, as gas was going up and up, how many people were dumping their gas hogs thinking it would be even harder to do so if gas hit $10 gal.?

  • avatar
    motownr

    Obviously, somebody mentioned that 90%+ of employee business is lease. Take it away, and CFC would have tons of fun towing vehicles away from some very large and very bankrupt dealers.

  • avatar
    toxicroach

    Do employees lease because they are expected to have reasonably newish cars or do they lease cause they know something we don’t?

  • avatar
    motownr

    They lease because they have historically had little need to save for retirement/healthcare, and b/c they can pick up new cars for incredibly low payments.

    As in trucks for $79/mo; minivans for $100/month, and so on. Kids…meet candy store.

    Wouldn’t you have a bunch of cars if they were this cheap? In Detroit, workers frequently have tiny houses with a driveways loaded with year old cars.

    A unique situation, to say the least.

  • avatar
    Under_the_Bus

    our execs will continue to get cheap cars

    Yeah like they drive any of their own products.

  • avatar
    Happy_Endings

    I love the Bob Marley references! Think I’ll go listen to Exodus now …

  • avatar
    50merc

    motownr: “…They lease because they have historically had little need to save for retirement/healthcare, and b/c they can pick up new cars for incredibly low payments.
    As in trucks for $79/mo; minivans for $100/month, and so on. Kids…meet candy store.
    Wouldn’t you have a bunch of cars if they were this cheap? In Detroit, workers frequently have tiny houses with a driveways loaded with year old cars.”

    Wow! I knew management was cosseted from the unpleasant aspects of car buying and maintaining, but I didn’t realize the working stiffs also got such sweet deals. No wonder Detroit couldn’t understand why customers by the many millions felt abused. Ford, GM and Chrysler worked great for those on the inside!

  • avatar
    Beelzebubba

    I can already see the banners now- Chrysler Sebring 4-door, lease for only $499/month for 36 months!

    As to the #4 statement above- it reminds me of how GM took away all the Cadillacs, Corvettes and SUVs from many execs when the Pontiac Aztek hit dealer lots (then refused to move any further). They forced various levels of execs and middle managers to drive an Aztek instead!

    Since actual buyers wouldn’t touch the Aztek with a 10-foot pole they dumped them off on their own employees and, I’m not kidding, I even remember reading that they were told to look “happy” driving them! =)

    Chrysler can’t sell their crap, so they might as well toss a few to their execs and other corporate staffers…they just might be the only new Chrysler vehicles any of us will see out on the road!


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