Chrysler to stop leasing cars

Chrysler sent a message to consumers today: it doesn’t want its cars back. Starting in August, Chrysler will no longer offer leasing at its dealerships. Lease programs have been popular in the past because after the lease period is up, the company is free to sell the car. Thus, the company would get paid for a portion of the car and wind up with the asset at the end. The problem for Chrysler is because of the gas-thirsty nature of many of their vehicles, and possibly years of deep discounts, its cars coming off leases do not retain enough value.

This does not mean that customers cannot lease Chryslers completely. Leases can still be set up through a third party, like a bank, but the terms would likely be more expensive. Leasing from the factory sometimes allows customers to get more car for their money, due to lower payments. So the days of cheap, luxurious cars from Chrysler may be over.