Chrysler’s Santander Unit to Speed Financing Approvals image

Chrysler announced that its financing partner, Banco Santander, plans to reduce the four-hour industry average time for approving a vehicle purchase.

Santander Consumer USA will create the Chrysler Capital service to finance purchases and leases for cars and light-trucks and offer customers the possibility to use a full online approval process before they visit a dealership, according to Peter Grady, Chrysler Group’s vice president of dealer network development and fleet operations.

“That’s a big dissatisfier for a consumer,” Grady said of the financing approval process. “It’s all explainable, but it’s got to change. Chrysler may seek to cut the time in half. You’ve got to have those crazy, audacious goals.”

This month Chrysler announced it will let the agreement with Ally Financial expire on April 30th and then, from May 1st, it will begin cooperating with Banco Santander, its new lending partner for the next 10 years. The US automaker said that it chose Santander mainly because of its expertise with automated decisioning, which means that data modeling is being used to speed up the process of loan applications and to set appropriate terms for the person who borrows.

” Santander Consumer USA does that today, in the subprime space,” Grady said. “There are certain things that they know that make them take a little bit more risk and approve more deals because they mine the data.”