Increase in Subprime Lending Leads to Greater Auto Loan Availability for Chrysler Customers

Chrysler Group LLC has expanded Carl Hogan Automotive’s customer base through increased subprime lending.

Columbus, Mississippi (I-Newswire) July 26, 2012 - Chrysler Group LLC has emerged as the industry leader in subprime lending thanks to a special relationship with a bank, and Carl Hogan Automotive is excited to offer auto loans to the now larger consumer pool.

Chrysler has been growing over the past year by taking share from its foreign and domestic competitors. The gains are due to new products like the Jeep Grand Cherokee, its aggressive advertising campaign and its relationship with Santander Consumer USA Inc., a bank that specializes in lending to consumer with low credit.

The relationship came about as part of the marriage with Fiat SpA which already had an established relationship with Santander, one of the largest banks in the Eurozone. The Fiat-Chrysler group announced in 2010 that it had reached an agreement with Santander Consumer USA to provide subprime auto loans to consumers who could not get funding through GMAC Financial Services, which was serving as Chrysler’s lending arm at the time.

The match was perfect as Santander was looking to expand its U.S. loan portfolio at the same time Chrysler was looking to grow its U.S. market share by catering to consumers with low credit ratings. The result is that all of Chrysler’s brands are ahead of the industry average in regards to subprime sales putting the company at the front of the auto loan pack.

The situation is a “win” for everyone. Consumers are able to get the financing they need to purchase a car, Chrysler is selling to a larger market, and Santander is can charge higher interest rates for a deep subprime loan – or a loan to someone with a credit rating below 550 – than those needing prime or super prime auto loans.

About Carl Hogan Automotive
Carl Hogan Automotive in Columbus, Mississippi provides new and used Chrysler, Dodge, Jeep and Ram vehicles to the area of Columbus, West Point, Starkville, Aberdeen and Tupelo. Financing options are also available, and consumers can be pre-approved through the dealership’s online auto loan application available at www.carlhoganautomotive.com.