Jul 25th, 2008 by Liz Opsitnik
Chrysler LLC has started telling dealers it will no longer offer auto leases through its lending arm, Chrysler Financial, reports the Wall Street Journal.
Chrysler and other auto companies with financing units are taking on a lot of losses from leases, due to low resale values of trucks and SUVs.
This will make it harder for dealers because certain rebates and incentives kick in only when customers lease a vehicle through Chrysler Financial.
Chrysler Financial will probably see higher borrowing costs in early August when it rolls over about $30 billion of short-term debt backed by the loans and leases it makes. That, in turn, will make it harder for the company to offer low-interest loans to buyers and for dealers to hold inventory.
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