Chrysler Financial is first auto company to repay government loans

According to reports from Reuters, Chrysler Financial has become the first auto company in the U.S. to pay back its loan of $1.5 billion, which they had received from the U.S. Department of Treasury. The loan, which was taken out in January, was to help the company fund vehicle loans, as well as offer incentive programs to Chrysler customers.

Chrysler Financial, previously the lending arm of Chrysler received this loan as part of its bailout package, in the hope of providing incentives and consumer loans. Chrysler Financial now looks to GMAC to provide loans to finance inventory for Chrysler dealers.

These recent changes have left Chrysler Financial with a reduction in its scope of operations. The company, now owned by Cerberus Capital Management will continue to offer insurance to dealerships, as well as alternative financing for those who wish to purchase a new vehicle.