It's getting easier to lease a car. Chrysler, the last domestic automaker not currently offering a lease program, is reportedly prepared to lease again.
Many non-luxury automakers stopped leasing altogether last summer, while others tightened their lending standards to restrict leases to those with near-perfect credit. The move was self-defense for the industry -- when high gas prices caused the residual value of many leased vehicles to crash, many lessees returned their vehicles, leaving automakers holding the bag. But industry analysts believe it hurt sales, particularly among domestic automakers, who took more drastic steps to curtail leasing than their foreign counterparts.
Now, Autoblog reports, "Dealer sources say leasing could return to [Chrysler] as soon as September 18." The company "is reportedly waiting until after next Tuesday to make an announcement so it can look over residual value data from the Automotive Lease Guide before making a final decision."
The move, should Chrysler make it, would be good news for consumers. Auto Loan Daily explains, "Leasing offers consumers a lower monthly payment compared to a car loan, since they are essentially renting the vehicle for a few years, instead of owning it. Lessees' monthly payment is based on the price of the car minus the residual value, or future value, at the end of the lease period. Auto loan customers' monthly payment is based on the full price of the car, and they own the car after it is paid off."
Automotive News adds, "The leases, which will originate with GMAC Financial Services, will be offered only on select vehicles. Probable vehicles include the Dodge Journey crossover, Nitro SUV, Ram pickup and Grand Caravan minivan; Jeep Liberty SUV; and Chrysler Town & Country minivan."
The Wall Street Journal notes, "Chrysler now relies on GMAC Inc. for its dealer financing. It used to rely on Chrysler Financial, a finance company that was owned by the auto maker and became an independent company in 2007 for auto leases, consumer loans and dealer financing." That relationship, however, ended during Chrysler's recent bankruptcy reorganization - leaving Chrysler to partner with GM's former financing arm, which "recently resumed offering a consumer leasing product for select GM vehicles."
If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.



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