• Edward Posted: 9/9/2010 3:00am PDT

    Only a few years ago, the auto finance industry happily and accountably leased vehicles of all US makes and models. Many banks were involved and some ran a tight and profitable division of automotive ownership options. They didn't try to compete with the captives as they offered 36, 48 and 60 month terms and retained the lessee with end of term finance options. The indirect leasing business through smaller, regional banks actually held their own quite well. US Bank may be the one remaining source outside of the once well-funded captive lease sources and it should be a great partnership for Chrysler, Dodge and Jeep. In my opinion, leasing will return as a valuable option for the consumer especially as vehicles continue to rise in price and complexity. Used vehicle leasing is another option for the bank to capitalize on, especially with certified vehicles that have extended warranties. Remember that it's not all that important to an OEM to lease used models as their desire is to deliver more new cars. Leasing makes good business sense to as you’re driving a new or newer car, it will most likely be under warranty throughout the life of the lease and if you really like it, you can finance the residual and keep it. Keep those residual values realistic though, offer reasonable mileage allowances (10,000 mile lease ads are an annoying tease) and take the time to explain to the customer a lease to loan comparison that makes sense!

  • Bill Burke Posted: 9/9/2010 7:30am PDT

    This is one more step in Chrysler's road to full recovery and it's future as a major international auto company.
    Chrysler sales have been steady in a tough economy, being the only domestic to show a sales increase last month,and it will launch many top quality products to join Grand Cherokee shortly as "best in class" offerings to expand sale dramatically. Imagine if Chrysler had the financials fully supporting sales how well they may have done. This is a big help.
    Chrysler customers know how well Chryslers are being built today and the word is spreading. With new product, Fiat influenced modernization, excitng styling, smart management, improved dealers, an expanded world-wide sales network and adequate financial supports the future looks impressively positive.