Chrysler's Bankruptcy Clouds Future for Chrysler Financial
While Chrysler LLC's bankruptcy filing under Chapter 11 on Thursday provided a clearer picture of the troubled automaker's way forward, it left the future of Chrysler Financial clouded.
While Chrysler LLC’s bankruptcy filing under Chapter 11 on Thursday provided a clearer picture of the troubled automaker’s way forward, it left the future of Chrysler Financial clouded.
In a letter sent out Thursday, the finance company informed dealers that Chrysler’s bankruptcy filing could jeopardize agreements with its lenders.
“As a separate entity, Chrysler Financial is not included in the CLLC filing,” read the letter. “However, it does present several operational challenges that Chrysler Financial must address in order to maintain our credit agreements with our lenders.”
Until new procedures and process with its lenders are implemented, Chrysler Financial immediately suspended all incremental wholesale funding, all dealer loan advances in electronic fund transfers (ELT), all cash management accounts (CMA) re-advances, all new Dealer Rent-a-Car (DRAC) program funding, and fleet wholesale and fleet lease contract funding.
Additionally, Chrysler Financial suspended participation in Chrysler LLC’s subvented annual percentage rate program. The letter also stated that going forward, credit approvals will only be applicable for standard rate contracts.
“We now require that a contract be fully discounted prior to funding,” the letter read. “These proceeds will be credited toward the wholesale floorplan obligation that may exist on that specific unit at the time of processing. You will have 30 days from the date of approval to fund these contracts.”
As for retail financing, dealers will still be able to offer retail financing to customers at standard rates through Chrysler Financial. Dealers will also still be able to process applications through RouteOne.
Dealers were also notified that Chrysler Financial’s point-of-sale systems – CF Connect, eContracting, AutoOrigination, and ACE – will remain available. The company’s Dealer Rewards and CF Achievement will also remain available to dealers, as well as its Rewards Visa Instant Credit Card.
The letter also offered a 30-question Q-and-A section, and directed dealers with questions about their franchise agreements to Chrysler LLC. It also directed dealers to Chrysler Financial’s CF Connect dealer portal for additional updates on the finance company’s progress to rectify agreements with its lenders.
“Chrysler Financial remains focused on our operations,” read the letter. “We will provide updates as events unfold and as new processes that affect our current products and services are established and implemented.”
More F&I

Modern Technology Objection Handling
In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.
Read More →
Consistency at Scale: Driving F&I Performance
With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.
Read More →
Gitty Up on GAP
The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?
Read More →
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →