Chrysler Financial will get out of the leasing business beginning Aug. 1, as the automaker shifts its incentive dollars toward vehicle purchases, the company announced Friday, signaling intensifying financial pressure on the automaker.
The decision to cut leasing costs suggests the Auburn Hills automaker is strapped for cash and its financial arm is having more difficulty acquiring credit, analysts said.
"I see this as indicative of some financial difficulty ... banks may not be willing to lend Chrysler money on the same favorable terms as in the past," said Aaron Bragman, automotive research analyst at Global Insight Inc. "It's very risky to leave the leasing business up to a third party. Some customers will go to competitors and they will lose volume."
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