Chrysler Financial to End Business in 2011
Chrysler Financial, the former captive lender of Chrysler LLC, will liquidate and cease business in Dec. 31, 2011, according to a letter from the U.S. Treasury Department.
Chrysler Financial, the former captive lender of Chrysler LLC, will liquidate and cease business in Dec. 31, 2011, according to a letter from the U.S. Treasury Department.
Chrysler Financial was replaced by GMAC Financial Services as the preferred lender for Chrysler LLC in April after the automaker filed for bankruptcy. Since then, Chrysler Financial has been in the process of moving its loan business, including floorplan financing, to GMAC.
According to the Treasury Department’s Oct. 22 letter to Chrysler Financial, the lender “is pursuing a successful wind-down of its operations by Dec. 31, 2011, and the repayment of its lenders and investors.”
The future of Chrysler Financial as a business entity remains murky, but the company will continue to service existing loans on Chrysler vehicles, while new loans will be directed to GMAC.
“We remain active and focused on running our operations, including servicing the existing loans and leases of our customers and a portfolio of approximately $26 billon,” Chrysler Financial spokeswoman Amber Gowan said.
The letter sent to Chrysler Financial was among other documents released by the Treasury Department, which ordered the lender and six other companies that received government bailouts to halve total compensation to their top executives.
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →