NO MORE LENDING-BASED LEASES, CHRYSLER SAYS

According to industry insiders, Chrysler LLC will no longer offer auto leases through its lending arm, Chrysler Financial.
As consumers avoid the SUVs and other gas-guzzling vehicles they once leased in huge numbers, auto makers have seen their lease profits plummet. On Thursday, Ford Motor Co. had to write down 2.1 billion dollars related to unprofitable lease deals made by its own credit division.

Chrysler Financial will likely see its borrowing costs rise as it rolls over its own debt, backed in part by its lease business. That, in turn, will make it harder for the company to offer low-interest loans to buyers.

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