By on May 6, 2009

One of our sources reports that Chase has just told Chrysler dealers that it will no longer loan them money to buy Chrysler products.

Just got the call. Chase has officially terminated the floorplanning of Chrysler vehicles. Given the freeze at CFC [Chrysler Finance], now nobody can buy cars. Supposedly the haulers won’t deliver units because of payment concerns. A suggestion: see if the sales projections match the dealer network. My take is they aren’t even close . . . meaning, the expected losses to the taxpayer are going to be through the roof.

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26 Comments on “Chase Terminates Chrysler Dealer Loans...”


  • avatar
    GS650G

    The sun is beginning to be eclipsed by the moon.

  • avatar
    gossard267

    That’s no moon…it’s a debt star.

  • avatar
    TexN

    Wait a minute!!! The taxpayers are going to lose money on this deal!?!?! Maybe we should rethink this bailout…………

    gossard267,
    “debt star”. That is freaking classic!
    Tex

  • avatar
    JG

    lmao, brilliant!

  • avatar
    superbadd75

    Was this not something we saw coming? Why would any bank want to finance anything even remotely related to Chrysler or their vehicles right now? I’m curious as to how hard it will be for a consumer to get a loan to buy a Chrysler car.

  • avatar
    menno

    The Obama Debt Star.

    11 trillion dollars and counting.

    Took 203 years for the first trillion in debt to be accumulated. Ronny Ray-gun doubled it in 4 years (very bad – fail).

    Obama-nation has indebted us more since he has been in office, than Bush II did in 8 years, I read.

    (EPIC fail). Criminal, too. In Chrysler’s case.

    http://www.powerlineblog.com/archives/2009/05/023497.php

  • avatar
    brettc

    Hmm, this doesn’t seem to be working out all that well so far. Who woulda guessed that it’d be a clusterfsck so soon? Oh yeah, that’s right, everyone with a working brain woulda guessed that.

  • avatar
    obbop

    All is well.

    Sleep soundly.

    Rest assured that your money was passed along to the “proper” people to ensure their lofty life-styles are maintained.

    The class war continues.

  • avatar
    TonyJZX

    to be fair every country is facing the same thing

    massive debt due to supposed ‘stimulus packages’… for the long term… 7, 10, 15, 20 years in deficit

    while obama is being blamed i don’t know what’s worse… doing very little and acculumating less debt or shotgun scattering money in the hope things will pick up

    didn’t bernanke or geittner say end ’09/early ’10 things will get better?

    hmmm

  • avatar
    EricTheOracle

    Tinfoil hat says, “Wait, wait: if you continue to floor Chrysler dealers the stress tests suggest you’ll need to raise one bajillion dollars in reserve capital to offset the tsunami of Denny Heckers doing a swan dive off of the diving raft into bankruptcy.”

    In other news: What stimulus? I’m told our country’s problem is that I don’t pay enough taxes.

  • avatar
    Rod Panhard

    You know, we’ve seen how the keepers of the Debt Star (epic win gossard267) have no problem destroying lenders value by just changing the rules.

    So as it is, where do the Keepers of the Debt Star get their money? And who is to say that one day, they’ll just change the rules on THOSE lenders.

  • avatar

    Methinks we are about to learn the REAL liquidation value of a car made by an orphan company. Daewoo, Yugo, Pontiac and Bricklin owners are about to meet new friends.

  • avatar
    Robstar

    Anyone seen auctions for 2009/2010 vipers new? Start the bidding at $10k and I’m in :)

  • avatar
    NBK-Boston

    I am assume / hope that this means that dealers can’t floorplan new cars to replace any that they might sell in the coming days / weeks, and not that their existing stock will be carted off (to where?). Since Chrysler isn’t making new cars at the moment, is this just limited to dealers being unable to finance purchases of inventory sitting on Chrysler storage lots? Given dealer stock levels and sales rates, is anyone really going to run short any time soon? Are there other methods of moving cars down the pipeline should any one model prove popular and sell out at retail?

  • avatar

    Chrysler and Airtemp, reunited at last.

  • avatar
    Ralph SS

    If you have money in your house, someone can break in to your house and steal it. A criminal act.

    If you have money in a bank, someone can steal your debit card, or your identity, and get your money. A criminal act.

    If you have a money, in any place, someone can print so much more of it and redistribute it that it can make the pittance you have virtually worthless. A criminal act?

  • avatar
    Ferrygeist

    “Debt Star:” brilliant!

    I heard a fleeting comment on NPR this morning to the effect that Chrysler dealers are now going to offer $6,000 incentives. Nothing on the sites yet, but there is something on Jeep’s site about being able to deduct your sales tax on this year’s returns.

    I don’t know what much of it means. I do know that if a Jeep Wrangler Rubicon with a manual transmission hits $20k or less, I might–maybe just might–bite.

    Or, on second thought, maybe not…

  • avatar
    Richard Chen

    When is GMAC supposed to pick up Chrysler floorplan financing?

  • avatar
    Airhen

    Supposedly the haulers won’t deliver units because of payment concerns.

    Just last Saturday night while out on the town I saw two haulers loaded with mostly Grand Cherokees and a few Nitros.

  • avatar
    Srynerson

    That’s no moon…it’s a debt star.

    gossard267 deserves some sort of award for that one!

    And, to address the OP, besides ChryFi and Chase, does no one else finance floorplans for Chrysler dealers?

  • avatar
    menno

    Ralph SS said “If you have money in your house, someone can break in to your house and steal it. A criminal act.

    If you have money in a bank, someone can steal your debit card, or your identity, and get your money. A criminal act.

    If you have a money, in any place, someone can print so much more of it and redistribute it that it can make the pittance you have virtually worthless. A criminal act?”

    Apparently not, if the ones making the rules are the counterfieters (aka “the Government and the Federal Reserve”).

    Actually, none of the world’s nations have anything other than fiat money. Worth only what we think it is, no intrinsic value at all.

    I have a pal who married a Ukrainian woman 7 years ago. She moved here to the US at that time. She said that when the soviet union fell, virtually all Ukrainians had money in the bank – lots of it. Saving was a way of life.

    One day, all the money was gone. Nobody ever saw it again. (Back to Russia and the Russian mafia, no doubt).

    For awhile, the Ukrainian government simply handed out “coupons” worth “X amount” of “X food”. You couldn’t even use money to buy food because – there was no money.

    When the economy collapsed and Ukraine tried to print new money, it tooks some while before the country recovered.

    Obviously, folks in much of the ex-Soviet controlled world don’t trust banks so much….

    Point is – money we think is “ours” and “secure”? Can evaporate instantly.

  • avatar
    menno

    I just found this article and it is well worth reading and contemplating. Gangster Government.

    http://www.washingtonexaminer.com/politics/White-House-puts-UAW-ahead-of-property-rights-44415057.html

    Maybe the death of Chrysler will have been worth it, if it starts to take the scales off American’s eyes re: who they have elected.

    Roll on 2010 and 2012.

  • avatar
    wsn

    menno :
    May 6th, 2009 at 1:39 pm

    If you have a money, in any place, someone can print so much more of it and redistribute it that it can make the pittance you have virtually worthless. A criminal act?”

    Point is – money we think is “ours” and “secure”? Can evaporate instantly.

    ——————————————–

    Very very true. And that’s why most Americans only borrow and don’t save. No, they are not stupid. The savers are stupid and being gradually phased out by Darwinism.

  • avatar

    Ferrygeist :

    The tax break is on almost any vehicle

    http://www.irs.gov/newsroom/article/0,,id=205863,00.html

    dror

  • avatar
    kowsnofskia

    “Very very true. And that’s why most Americans only borrow and don’t save. No, they are not stupid. The savers are stupid and being gradually phased out by Darwinism.”

    I don’t think most Americans have the wherewithal to realize this is the case. Most of them are thinking “how much can I afford a month”

  • avatar
    ZoomZoom

    WSN:

    “Very very true. And that’s why most Americans only borrow and don’t save. No, they are not stupid. The savers are stupid and being gradually phased out by Darwinism.”

    Yup, I just said the same thing about the sign guys. They’re not stupid. They keep coming back to the same corner because they are rewarded nearly every time.

    kowsnofskia:

    I don’t think most Americans have the wherewithal to realize this is the case. Most of them are thinking “how much can I afford a month”

    Maybe they don’t have the presence of mind to realize it consciously. But I must wonder…are they possibly a superior being, already adapted for the begging of the future?

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