It has been a long time coming. Stellantis is finally getting its own financial side, making it easier for people looking to finance a new car. Stellantis entered into a $285 million deal to make the historic move.
You will be able to buy a new car directly from Stellantis soon
According to a press release from Stellantis, the is going to be getting its own financing firm. The automaker will be purchasing U.S. auto finance provider First Investors Financial Services Group for $285 million. Right now, Stellantis is one of the larger automakers and the only one without its own financing. Automotive News says this move will allow the brand to bring on more dealers and will give the company more flexibility.
In addition to that, the move is reported to be highly lucrative. Dave Kelleher, chairman of the Stellantis National Dealer Council, spoke to Automotive News. Stellantis has been at a “disadvantage because they’re losing the revenue that comes with a captive.”
“I used to hear this back in the Chrysler Financial days: You build a captive auto finance company to help support sales, and then by accident you end up making a lot of money doing it.”Dave Kelleher | Chairman of the Stellantis National Dealer Council
In case you didn’t know, Stellantis owns a lot of brands. These brands include Maserati, Fiat, Chrysler, Dodge, Jeep, Ram, Alfa Romeo, and more.
Santander is out, but not until the Stellatis contract is over
Carlos Tavares, CEO of Stellantis, says this acquisition “will allow Stellantis to provide our customers and dealers a complete range of financing options, including retail loans, leases, and floorplan financing in the near-to-medium term.”
The auto giant hopes to be able to fully support the sales side of things with the financial side. Since Stellantis owns so many brands, it makes sense this would be an eventual goal for the company. Such a move makes it a full-service organization. Not only are the cars produced in-house, but with the financing, the whole process will be in-house.
Currently, Stellantis finances through Santander Consumer USA. This agreement has been in place since 2013 when Fiat Chrysler Automobiles and Chrysler Capital entered into the mix. Santander isn’t going anywhere just yet as it still has customers to serve. Someone at Stellantis estimated that would go through the end of the contract, or April 30, 2023.
If you can’t beat them, join them
In the long run, Stellantis hopes to be able to offer more flexibility and incentive programs with the new financing. It would also help with marketing and make another strong reason for buyers to go with the brand. It will allow the automaker the ability to react faster to market changes and trends.
All of the other major Original Equipment Manufacturers (OEM) have a captive financer, namely General Motors and Ford Motor Company. As if the competition wasn’t stiff before, Stellantis is officially official.