FCA to Pursue Creation of a Captive Financing Arm

[BobbiBigWheels]

Article - https://moparinsiders.com/fca-to-pursue-creation-of-a-captive-financing-arm/

I cannot speak for the US dealers, but us Canadian dealers get roasted by Ford and GM Credit.

In Canada there are 3 banks that offer "Sub-vented" rates. Sub-vented refers to FCA paying these banks to offer a lower rate than they would otherwise. TD Bank, Scotiabank, and RBC are the only lenders that offer this.

Where this limits us is 2 ways -
A) Ford/GM Credit are much easier to get an approval on a client with borderline prime credit
B) They always, have lower rates and better residual values for leases.

I know this article is US specific, and that even if the US gets an FCA Finance Arm, us Canadians would be many eons in the future, this article got me excited about the prospect.

 

[Jared B]

They did specify North American market so hopefully it will happen for Canada too. I can't complain about TD but if I could have used a "Chrysler Capital" kinda thing and saved more money I wouldn't complain lol.

 

[Ryan]

Chrysler Capital isn’t exactly loved.

 

[Jared B]

Chrysler Capital isn’t exactly loved.

This is why I think having their own captive financing would be a good thing. We don't have Santander up in Canada but I've read a lot of bad things about them.

 

[Ryan]

This is why I think having their own captive financing would be a good thing. We don't have Santander up in Canada but I've read a lot of bad things about them.

Just one recent example would be putting a stipulation on someone who doesn’t have much credit to put $16,000 down.

 

[UN4GTBL]

Chrysler Capital isn’t exactly loved.

They loved us when we were flipping leases all the time lol

 

[BobbiBigWheels]

Just one recent example would be putting a stipulation on someone who doesn’t have much credit to put $16,000 down.

That's nothing unusual for a client that does not debt-service for a loan, or has poor credit.

 

[Moparjerry]

I would think it would make its way to Canada, really nothing to loose for FCA & will make selling its product that much easier re another credit option.
MOPAR Always!