Stellantis F&I Offices Using Captive Finance More Often, Says Report

The byzantine House of Stellantis rolled out its own captive finance arm just over a year ago, seeking to pocket some of those sweet loan profits which were flowing out the door whilst the company attempted to rebuild itself following a sojourn through bankruptcy and an embarrassing parade of suitors.

Now, it seems approximately two-thirds of Stellantis dealers in this country are using the captive lender – after, of course, the sales staff pencils a healthy leg in the four-square prior to stuffing them in The Box.

According to Automotive News [ link], about 1,600 out of the company’s 2,600 dealers have begun using Stellantis Financial Services over the past year. Speaking with finance clerks (yes, I’m using that title intentionally because it deeply annoys those in an F&I office at a dealership) at a sampling of Stellantis dealers, AN learned the captive finance arm was apt to quickly respond to credit apps and is receptive to follow up from the finance clerk, calls made presumably between their swigs of Monster energy drinks and leering at the new receptionist.

Stellantis Financial Services got its start after a gestation period following the company’s acquisition of F1 Holdings Corp last November. Alert readers will remember that outfit was the parent company of First Investors Financial Services Group and cost Stellantis about $285 million to buy. With scads of money and profit available to be earned through financing their own deals, Stellantis could recoup that cost in a relatively reasonable amount of time – if they’re smart.

And, by all accounts, they are. Dealers to whom AN spoke for their story said Stellantis Financial is “well organized” and praised its rollout strategy which apparently allowed the burgeoning lender to find its feet instead of biting off more than it can chew. After all, there is potential for the outfit to grow into a large captive, the type of lender which can buy ample amounts of paper and use that leverage to offer attractive terms. Those terms could be more than just low rates for the customer, of course, including but not limited to incentives given to dealers for using their services. Whether that takes the form of a finance reserve or sliding buy rates or a simple commission will likely never be known to the customer.

Through the end of Q3 this year, Stellantis has sold 1,199,407 units which is a 12 percent decrease compared to the same timeframe twelve months ago. 

[Image: Dodge]

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