Santander Bank Offers Nonprime Loans for Chrysler

American manufacturer Chrysler announced today it has signed a deal with Santander Consumer USA, a division of Banco Santander, to provide nonprime loans for customers with nonprime credit scores of 650 or lower.

According to Autonews, Chrysler is subsidizing, while there's no word on how much the carmaker pays. According to the carmaker, 22 percent of Chrysler customers fall into the credit range covered by Santander.

"Santander specializes in this credit market. They know how to finance it. They don't do prime lending. They have plenty of money. There is not a liquidity issue," Chrysler spokeswoman Kathy Graham told the source.

"It's a very good bank,”
Sid DeBoer, member of the Chrysler National Dealer Council added. “They focus on the lower credit-score people. It's worked very well for us in several of our stores, making some difference in our ability to finance used-car deals. Since Chrysler is going to be paying for part of this, it should make it very attractive for new cars as well."

Chrysler is also scrambling to find a solution should Ally Financial (formerly GMAC) be repurchased by GM. Ally is the prime lender for Chrysler costumers, and its passing to GM would affect Chrysler.

"We need to transition to a permanent, stable solution for Chrysler going forward," Marchionne according to DetNews. "Once they tell me that GMAC is going to go back into General Motors, we need to have the time, the space to find an alternative solution to the long-term future of Chrysler."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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