The automaker announced the arrangement in an e-mail to dealers today.

“Starting today, your customers now have a choice of finance sources to lease select vehicles. Special lease rates and residuals are now available through U.S. Bank,” the e-mail said. It is signed by Fred Diaz, Ralph Gilles, Michael Manley and Olivier Francois, CEOs of the Ram, Dodge, Jeep and Chrysler brands, respectively.

“While Ally remains our preferred lender, this new relationship with U.S. Bank will now give your customers a choice in lenders and will continue to allow you to write your leasing deals at the most competitive rates and residuals available in the market today,” the message said.

Chrysler spokesman Ralph Kisiel declined immediate comment.

The move comes a month after Ally Bank, which is still Chrysler’s preferred lender, announced it was opening leasing to a wider range of customers. Ally lowered the FICO score threshold for lease customers to 620 from 660. A 660 score is on the lower end of prime credit, while a 620 score is on the upper end of subprime.

Chrysler has gradually been rebuilding its leasing business after it collapsed during the credit crisis of 2008. In 2006, when Chrysler Financial was still Chrysler’s captive finance company, leases accounted for about 22 percent of the automaker’s new-vehicle sales transactions. After Chrysler Financial left the leasing business in 2008, along with most of Chrysler’s lenders, the percentage of leases plummeted to under 1 percent of all sales by mid-2009.

Leasing has slowly come back since then, accounting for between 4 and 6 percent of Chrysler sales now.

Source: Automotive News ]]> http://www.carsforgirls.com/index.php/chrysler-expands-lease-offers-under-new-pact-with-us-bank/feed/ 0 http://www.carsforgirls.com/index.php/10-tips-to-help-you-shop-smart/ http://www.carsforgirls.com/index.php/10-tips-to-help-you-shop-smart/#comments Mon, 31 Aug 2009 09:30:29 +0000 Tina http://www.carsforgirls.com/?p=4519 On average, the cost of a pre-owned car is about half that of a new one – but remember – used cars are only bargains if we don’t overextend ourselves paying for them. Try these tips for deciding just how much you can pay for a pre-owned car:

1. Calculate all monthly expenses to determine the remaining amount available from your monthly income.  Calculate and include everything you can think of that you pay for on a monthly basis, including realistic expenses for things like food and entertainment.  

2. Estimate and include fuel costs in your expense calculation, and whether the vehicle will be driven to work or school every day.  Learn what fuel costs are in your area and calculate how much it will cost you on average to fill up every week.   This is especially important if you commute over long distances daily.

3. Check insurance rates. They’re normally lower for used cars, but will vary based on the individual and specific vehicle.  Also, ask about discounts and find out if you qualify. 

4. Take into consideration any other associated costs, such as registration and license fees, or if the vehicle will need new tires.

5. Most financial experts say a monthly loan payment should be no more than 20 percent of your remaining monthly income.

6. Most lenders expect a minimum down payment of 10 percent, but it’s sometimes less – or none at all – depending on the lending institution.  If you are required to provide a down payment, it’s a great idea to put down more than 10 percent; the more down payment you can provide, the less your monthly payments will be.

7. Consider using numerous Internet sites to help find used cars in your price range. There are numerous sites that contain thousands of vehicles for sale from reputable dealers.

8. Take advantage of Carfax or AutoCheck to obtain a vehicle history report.  These reports can help you determine if the car you may be considering has ever been in an accident or flood, and will help to determine if the odometer is accurate.

9. it’s a good idea to have a used vehicle checked out thoroughly by a trusted mechanic before you buy.  Many people believe that after a test drive, this is something that’s simply unnecessary, or they feel uncomfortable asking if they can take the vehicle to a service garage, but it’s important to remember that it’s your money, therefore you have the right to know exactly what you’re paying for.  If the mechanic uncovers any problems, these problems can be used as a bargaining tool to help lower the cost of the vehicle, or can be a reason for you to decline the sale completely. 

10. As always, never be afraid to ask questions and if you believe you’re not being treated fairly, or with respect, take your business somewhere else.

The good news is that top automotive retailers have stepped in to offer a new auto stimulus plan that offers up to $4500 to consumers.

Automotive retailers have launched AutoStimulusPlan.com, a dealer stimulus program to help consumers who were left behind by the government’s plan.  According to top officials, over 90% of consumers were not eligible for the government’s program, which left a lot of consumers unsatisfied. Now that the government’s “Cash for Clunkers” program is ending, many retailers are participating in the new stimulus plan that gives consumers up to $4500 of additional trade-in value towards the purchase of a new or used vehicle.

This new plan should help fix many of the problems with the government program.  All trade-ins older than 2007 are eligible – regardless of their current mpg – and consumers can purchase or lease any new or used vehicle with an improved fuel economy of 2mpg. This is a contrast to the government program, which officials say appealed to less than 10% of the consumer market because it excluded trade-ins with more than 18mpg, used cars and short term leasing, and most vehicles needed to get at least 4mpg improvement to qualify.

The Auto Stimulus Plan is a private sector program promoted by retailers to help consumers, the economy and the environment. To qualify, a consumer must select a new or pre-owned vehicle with a 2mpg improvement over their current vehicle, which is the same requirement the government program has for SUV’s, but it applies to all vehicles under the dealer plan.

The Auto Stimulus Plan gives consumers up to $4500 of additional trade-in value towards the purchase or lease of a new or used vehicle with improved fuel economy. The program has fewer rules, easier paperwork and no minimum mpg requirements for trade-ins.

Below is a summary of the program Requirements:

• Vehicle must be older than 2007
• Vehicle must be in working condition
• Vehicle has been owned and registered for at least 6 months
• No minimum mpg requirements
• Vehicles that are not eligible: salvaged vehicles and vehicles with floor or frame damage

Replacement Vehicle Requirements:

• Replacement vehicle must have a minimum of 2mpg improvement
• New and used vehicles qualify
• All makes and models
• No minimum mpg requirements
• No price restrictions
• This plan is not valid in combination with the governments C.A.R.S. program

The plan varies based on the year, make and model of the eligible vehicle. The plan may also vary in some states due to state laws that regulate automotive advertising and promotion.

The Auto Stimulus Plan was planned to end when the government’s program expired but they have extended the end date to November 1st, because of the sooner than expected termination.

Consumers can learn more about the program and begin connecting with participating retailers by visiting: www.AutoStimulusPlan.com.

Chrysler just announced an awesome incentive to get you into the dealership.  It’s called “Double CA$H for Your Old Car,” and can really save you a lot of money – up to $9,000! – toward your purchase of a new Chrysler, Dodge or Jeep vehicle.

The program, which began yesterday (Thursday, July 23, 2009), the same day as the Car Allowance Rebate System was officially launched (otherwise known as Cash for Clunkers, or simply, CARS), will offer up to $4,500 in customer cash or 0 percent financing for 72 months through GMAC Financial Services on most 2009 model vehicles. The program doesn’t last long though – it ends on August 31, 2009.

The CARS program offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased.  For more on the government CARS program, click here.

Steven Beahm, Vice President of Sales Operations for Chrysler, says that through the new Chrysler Double CA$H for Your Old Car incentive, everyone looking to purchase a new Chrysler vehicle qualifies for the program:

“Everyone shopping for a new car or truck qualifies for an incentive of up to $4,500 – even if they don’t have a vehicle that qualifies under the U.S. Government’s program. This incentive is great in that it’s easy to understand and available to everyone.”

To find out more, visit Chrysler.com, click on the “Cash In Your Car” icon, and then click the “incentives by vehicle” tabs on the left to learn how much you can save.

The simple explanation is that many people who are buying a car for the first time are generally young, and between the ages of 16 and 23. Since buying a car – whether it’s new or used – is a major purchase and generally done on credit, there are many first time car buyers who simply don’t have the kind of credit history required to get a loan independently. Other situations – such as poor credit history - also influence credit worthiness. In either situation, banks and lending institutions may ask for a co-signer, someone that will guarantee the loan will be paid back.

A co-signer may also be referred to as a “co-borrower “or a “co-applicant.”

Here’s how it works…

When someone is granted a loan, the bank or lending institution will generally require a third party to guarantee the loan. What this means – in simplest terms – is that if someone who doesn’t have any credit history (or who has s weak or poor credit history) applies for a loan, the third party must sign in addition to the original borrower. This third party then becomes the “co-signer,” “co-borrower” or “co-applicant.”  A co-signer is generally someone who is a parent, sibling, spouse, partner or relative, and in some cases, the co-signer may even be an employer or a friend of the primary borrower. By agreeing to become a co-signer, he or she would then become the responsible party to the debt, should the primary borrower default on the loan.  In other words, the obligations of the co-signer are the same as those of the primary borrower.

As you can see, there really are no benefits to being a co-signer, but many times parents take on the role so that their children can establish credit.

It’s a good idea to remember that if you choose to become a co-signer, the loan will be on your credit report and will affect your credit score – just as if you were the primary borrower.

Keep in mind too, that the bank or lending institution, as well as any debt collectors or agencies, can and will contact you to demand payment, taking any action necessary for repayment of the loan, including collection or wage garnishment – again, just as if you were the primary borrower.

So, before you agree to become a co-signer, here are some things to consider:

1. In some states a creditor can attempt to collect the debt from a co-signer before collecting from the primary borrower.
2. Be sure you can afford to pay the loan, otherwise you could be sued or your credit rating damaged.
3. You are a co-signer for the duration of the loan.
4. You should not co-sign for a loan if you don’t feel good about the situation.
5. Being a co-signer on a loan can keep you from obtaining other credit.
6. If a loan goes unpaid, you may be liable for fees and penalties, in addition to principal and interest.
7. As a co-signer, make certain you have copies of all loan documents, including the Truth-in-Lending Disclosure Statement.

The government subsidized program is designed to help consumers turn in their older, less efficient vehicles and apply the government credit towards the purchase of a new vehicle with improved gas mileage.

If you’re in the market to lease or buy, you can search through a large selection of fuel efficient vehicles (yes – that includes hybrids!) for sale or lease over at Swapalease.com’s online marketplace.

Richard Joseph, who is President and Co-founder of Swapalease.com, believes the Cash for Clunkers program will have a positive impact on the environment and the economy:

“Swapalease.com strongly supports the Cash for Clunkers program. It is good for leasing and good for the auto industry. We have even added a new section to our web site to assist consumers who have questions about the program, as well as explaining which option is best for their unique situation, whether it be a new lease origination or a lease transfer.”

Swapalease.com is a large automotive lease marketplace, online since 1999.  It has assisted consumers with exiting their car leases early – and with no penalties – using a patented online process. Consumers who would like to get into short-term leases with no money down and low payments can take over the remaining payments on in-process leases. The company says lease transfers are a win-win-win situation for the buyer, the seller and the leasing company, since it saves everyone money and reduces repossessions.

The company is headquartered in Cincinnati, Ohio.

For more information, call 1-866-SWAPNOW or visit www.swapalease.com.

Kelley Blue Book has chosen their Top 10 Tax Refund Cars; cars they believe your tax refund should be spent on.  I’m not certain I agree with everything on their list, in fact, maybe two on the list would be cars I’d actually consider. 

Here’s a sampling of their choices:

2010 Audi S5 Cabrio
2009 BMW Z4
2010 Ford Shelby GT500
2009 Infiniti G37 Convertible
2009 Porsche Cayman

Now, unless you’re very rich, are 100% certain your job will survive the recession and you can justify spending over $50,000.00 for a Cayman or $55,000.00 for an Audi Cabrio in these lean times, this is one list I think I’ll pass on.  Realistically, nobody in my crowd pockets a tax refund or stimulus check anywhere close to what these cars cost. In fact, most of my friends call themselves fortunate to get $100.00 back, so there’s just no way they could even afford a down payment for most of the cars on the list - at least certanly not right now.  

In addition, KBB recently announced the results of their latest Kelley Blue Book Marketing Research survey of in-market new-car shoppers.  Seventy-three percent of consumers said they would consider buying a new car with help from items like their 2008 tax refund, a stimulus check or new-car-related 2009 tax deductions.

Sure, I can get behind those figures but I think most people surveyed weren’t thinking about buying a $40,000.00 BMW with their refund checks, either.  Even with tax rebates, the stimulus package which encourages more 2009 car purchases, as well as sales tax deductions, people want a vehicle that’s a good buy, that won’t break the bank, gets good fuel economy and most importantly, one that’s affordable. I know we’re living in the disposable age, but cars cost a lot of money even with rebates, refunds and deals.

I’m a loyal KBB follower, but I just can’t get behind this list.

If you’re like me and the majority of my friends who can’t afford anywhere near a $50,000.00 car, take a look at my choices below instead you’re likely to find something affordable, that fits nicely into your budget and doesn’t skimp on looks, features or safety, either.

Tina’s Top 10 Tax Refund Cars:

• Nissan Versa
MSRP: $9,990
26/34 mpg

• Mazda 5 (minivan)
MSRP: $18,665
22/28 mpg

• Ford Fusion
MSRP: $19,270
23/34 mpg

• Kia Sportage SUV
MSRP: $20,370
20/25

• Nissan Altima 2.5 S
MSRP: $21,040
23/32mpg

• Kia Sorento SUV
MSRP: $22,165
17/23 mpg

• Volkswagen Tiguan SUV
MSRP: $23,200
19/26 mpg

• Volkswagen GTI
MSRP: $23,230
21/31 mpg

• Chrysler 300
MSRP: $27,665
18/26 mpg

• Volkswagen Passat Wagon
MSRP: $29,690
19/28 mpg