Chrysler's financial arm to stop leasing vehicles
 

DETROIT - Chrysler LLC has told dealers that the automaker's financial arm plans to get out of the auto leasing business before the end of the year.

A dealer who asked not to be identified says the reason is that the value of leased sport utility vehicles and pickup trucks has dropped, so Chrysler takes a loss when it tries to resell the vehicles when the leases are over.

Chrysler spokesman Stuart Schorr declined to comment on the issue but said Chrysler executives will hold a conference call Friday afternoon.

The Chrysler dealer did not want to be identified because the company had not made an official announcement.

Word of Chrysler Financial's move comes a day after Ford Motor Co.'s credit arm took a $2.1 billion charge because of the drop in the residual value of leased vehicles.

Copyright 2008 The Associated Press.