DETROIT – Chrysler is getting out of the car leasing business, according to the New York Times. The company told its dealers on Jul. 25 that it would stop leasing vehicles to customers through its finance arm as of Aug. 1.
A co-president at Chrysler, James Press, said the carmaker would focus on traditional financing offers rather than on lease subsidies. Leasing carries more risk for the automakers, and in many cases low interest rates have made it less appealing to customers than it was years ago.
Chrysler dealers can still offer leases through companies other than Chrysler Financial. Nationally, Chrysler said about one in five customers lease. But leasing is extremely popular in certain regions, like Detroit.
Also, General Motors (GM) said it would make employee discounts more accessible to nonemployees for the rest of July in the hopes of stimulating sales in an otherwise slow month. GM told employees that they can each pass on their discount to one other person.