Ally Financial Lowers Credit Threshold for Chrysler Leases;
Posted on August 4, 2010
Filed Under Vehicle Ownership
Ally Financial has lowered the credit threshold for Chrysler leases, which will allow consumers with slightly lower credit scores to obtain leases for the automaker. Honda Dealer Bossier City and other dealerships have been struggling to find financing for those with less than perfect credit, and the move by Ally will help those consumers obtain vehicle leases from Chrysler. Ally Financial will allow consumers with a credit score of 620 minimum to qualify for a vehicle lease. Previously the threshold was 660. Chrysler is attempting to sell as well as Ford and GM have been over the past year. Models like the Ford Focus which can be bought during Ford Focus Deals for additional savings have been selling well and Ford has made leasing and financing options available to a wide range of consumers. Peoria VW also sells Volkswagen models which have been selling well despite the poor economy and lack of available financing options.
Chrysler’s preferred financing provider is Ally Financial and the move will allow some relief for Chrysler which has been struggling to find financing options for some of its subprime consumers. The score of 620 is considered to be at the upper end of subprime. The FICO score of a consumer is used to determine the risk that lenders have for offering a loan or a leasing option. Chrysler formerly had a leasing business which collapsed in 2008 after its captive financing company, Chrysler Financial, left the leasing business. This happened because of the decreasing in leasing sales for SUVs and pickups substantially decreased in 2008 when gas prices increased rapidly over a short period of time.
In 2006, leases were 22 percent of every new Chrysler vehicle transaction. During that time, Chrysler had a captive financing company. After Chrysler Financial left the company, the amount of leases substantially decreased to under 1 percent for 2009. The automaker hopes to change that with the new leasing option by Ally Financial.
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