Non-Prime Chrysler Customers Can Now Get Financed Via Santander; Expanded Automaker Relationship with GMAC
AUBURN HILLS, Mich. — Thanks to a new partnership with Santander, starting today, Chrysler dealers can ramp up the number of credit-challenged customers they are getting behind the wheel of Chrysler, Dodge and Jeep models.
Furthermore, a Chrysler spokesperson told SubPrime Auto Finance News that GMAC is also expanding down the credit spectrum to finance more non-prime customers for the automaker.
Ultimately, this gives customers and dealers more options when it comes to financing a Chrysler model. It also helps Chrysler increase its market penetration by adding about 2,000 sales per month, which is a win for both customers and dealers, according to Ralph Kisiel, a Chrysler spokesperson.
Santander will specialize in financing customers with FICOs of 650 and below. About 22 percent of Chrysler customers fall into the non-prime category. As for GMAC, how far down it buys in the credit spectrum largely depends on each individual customer's credit history as well as time at residence, time on same job, etc., which is what most finance companies review prior to booking a deal.
"There has been so much turmoil. Some of these customers had credit scores fall because they lost their job, they were impacted by the economic downturn," Kisiel explained to SubPrime Auto Finance News Wednesday.
"These consumers couldn't get financing or had to shop around to other banks or had to shop for a used car," he continued. "Through Santander, they will now be able to get attractive deals, about 30 percent lower than what they could get on the open market. It will result in savings for consumers of up to $3,000. That's a significant drop."
Chrysler is subsidizing the deal with Santander; however, Kisiel said he could not share the details.
Apparently, about half of the Chrysler dealer network already works with Santander to move used vehicles, and the remaining half will have received applications this week via DealerTrack or RouteOne to establish a relationship. In addition to financing new Chrysler models via the deal, Chrysler dealers will also be able to take advantage of the deal to help customers finance used models as well, including those of other automakers.
An added benefit of the new non-prime partnership is that Santander has the ability to let dealership finance departments and customers know within minutes whether a credit application has been approved.
While Santander is now the preferred non-prime lender for Chrysler, Kisiel stressed that GMAC remains the preferred prime lender.
There are rumors abounding that General Motors is seeking to either establish its own finance company or perhaps purchase back GMAC from Ally.
In response, Kisiel said, "We still have a very good relationship with GMAC as our preferred prime lender. They have expanded to include non-prime business, so customers can now go through Santander or GMAC (to see where they get the best deal). Chrysler is excited about strengthening its relationship with GMAC with the expansion."
Beyond that, he indicated that GMAC is an independent company and Chrysler cannot comment. However, he did note that GMAC financed the largest number of deals for Chrysler in the first quarter.
SubPrime Auto Finance News also reached out to Santander to discuss the latest deal with Chrysler. However, a company spokesperson indicated that Santander is not currently making any public statements.