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Chase Auto Finance to end Chrysler leases

July 29, 2008

Chase Auto Finance said Tuesday it will stop financing leases for Chrysler vehicles on Aug. 1, the same day the automaker's lending arm exits the leasing business.

The finance unit of JPMorgan Chase & Co. will continue to make loans for retail sales with Chrysler's dealers, but it will no longer offer leases on Chrysler, Dodge or Jeep products, said spokeswomen Mary Kay Bean.

After Chrysler Financial’s announcement Friday to ends its leasing business, the company was concerned it would be flooded with lease financing requests from dealers.

"Leasing is a small part of our portfolio and we intend to keep it that way," Bean said.

Leasing represents 1 or 2 percent of Chase's total automotive finance portfolio, but the company was concerned that number would rise as Chrysler dealers looked for other options to continue leasing.

"We could foresee there would be a lot of interest, and that wasn't something we wanted to handle," Bean told the Associated Press. "We keep it small because we were concerned about used car values."

Chase will continue financing leases for other automakers, although most of its portfolio is with Subaru. The company will finance leases written through the close of business Thursday, Bean said.

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