Life Truly is Stranger Than Fiction

The Coconut Telegraph has been rumbling about this for a week or so, but Chrysler’s announcement today they are re-entering leasing borders on the sublime.

Just 13 months after they led the mass exodus from consumer vehicle leasing, they announced today leases are again available on all 2010 Chrysler, Dodge and Jeep vehicles.

Our friends at AutoRemarketingToday have the complete story at: http://www.autoremarketing.com/ar/news/story.html?id=10082. However, here are a few observations:

• This is great news for leasing in general.
• Here’s hoping they FINALLY learn from the past and don’t get aggressive on residuals OR rebates. Unfortunately, I’m not going to hold my breath.
• GMAC is underwriting the program. I realize GMAC took over Chrysler Financial earlier this year, but I still look at it and say, “WTF? Over.”
• In the wake of the announcement, they also stated they are now offering 72 month 0 percent financing or $4,500 rebates on select 2009’s. Again, “WTF???” If you're going to get back into leasing, get back into it!

Lastly, the article included a comment that almost caused me to fall out of my chair. GMAC stated leasing is “generally for customers who prefer to rotate vehicles more often and do not like dealing with trading-in or resale. In fact, GMAC states that this option is for customers 'not purely driven by a lower payment.'"

BING-O!

All too often dealers look at leasing a course of last resort. Can't get the customer into the car they want with a traditional loan? Then let's put them in a lease!

Horsefeathers.

If more dealers would take the stance that a lease is THE vehicle to put consumers in the right car, for the right payment on a SHORTER term, we would all be in much better shape.

The consumer gets a vehicle that makes sense for their budget and their driving habits, the dealer can make an honest profit and get the customer back in three years rather than five (or more) and everyone wins. CSI goes up and the dealers get more referrals.

How dealers and banks can continue to pursue 72 and 84 month plus loans just floors me.

Nevertheless, those of us who hang our hat in the leasing marketplace welcome you back Chrysler. Here’s hoping the banks that followed you out so quickly, take your lead and jump back in too.