Chase to end leasing for Chrysler
Chase to end leasing for Chrysler
Automotive News | July 29, 2008 - 4:33 pm EST
Chase Auto Finance said today that it will not finance leases for Chrysler LLC vehicles.
Chase was afraid auto dealers would flock to it in the wake of Chrysler Financial’s decision on Friday, July 25, to stop financing leases, said Chase spokeswoman Mary Kay Bean.
Chase is concerned about declining vehicle values, said Chase spokeswoman Nancy Norris. Lease payments are based on the residual value, the vehicle’s estimated value when the lease expires.
“We want to keep our lease portfolio small,” Bean said. Chrysler vehicles make up 1 to 2 percent of Chase’s auto finance portfolio, Bean said. She said Chase wants to maintain that level.
Chase Auto Finance, a unit of JPMorgan Chase & Co., notified dealers of the move Monday, July 28, Bean said. Chase will continue to finance auto loans.
Most of Chase’s auto finance business is with Subaru, she said.
Donna Harris contributed to this report
