Chrysler to end leasing, reverting to traditional (more expensive) finance

http://www.bloomberg.com/apps/news?p...efer=worldwide

leasing ending but some good finance packages by the look of things

July 25 (Bloomberg) -- Chrysler LLC, hurt by plunging prices for used sport-utility vehicles, said its finance unit will stop offering leases to customers on Aug. 1.

Rising borrowing costs drove up consumers' lease payments, helping spur the shift, President Jim Press told reporters today on a conference call. Dealers can still tap other lenders for leases once Chrysler Financial exits that business, he said.

Other automakers may have to follow. Ford Motor Co. took a $2.1 billion second-quarter charge yesterday for leased trucks owned by Ford Motor Credit as $4-a-gallon gasoline eroded the so-called residual values projected for the vehicles when they're returned.

Bang goes the Sebring convertible !!!

Never really understood how leasing worked anyway. Is it basically like hiring only with more expense, i.e. tax, mot, insurance?

Originally Posted by howell811

Bang goes the Sebring convertible !!!

I'm sure they do

Originally Posted by Alfaspeed

Never really understood how leasing worked anyway. Is it basically like hiring only with more expense, i.e. tax, mot, insurance?

Hiring is more expensive than leasing because it is typically a short term deal. Leasing needs insurance, but can include eveything else. It is popular now because of the tax on company cars - get a cash deal instead of the car, take a lease and enjoy most of the benefits and less of the net cost of a company car.

Originally Posted by Viking Dad

I'm sure they do

John.

Oh dear, And I was sooooo looking to the Jeep Wrangler Rubicon
as my next set of wheels.

Originally Posted by Nev

Oh dear, And I was sooooo looking to the Jeep Wrangler Rubicon
as my next set of wheels.

NEv, that is just sooooo wrong

I won't be loosing too much sleep over it either.

no panic needed, i doubt very much Chrysler will be around very much longer! Depending on what you read Chrysler are probably going to file for bankrupcey by the end of this year, like the rest of America's "Big 3" sales are in freefall & Chrysler are desparate to find a partner, now apparently they're talking to Tata/Fiat