Chrysler's financial arm to stop leasing vehicles
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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.
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.
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