Nissan Canada Finance will become Mitsubishi Canada's captive financing partner for vehicle leasing and loan services in "hopes that the new financing arm will attract more buyers," the automakers said last week.

Nissan Canada Finance will provide vehicle leasing and loan services to retail customers and wholesale financing to Mitsubishi dealerships beginning July 1.

The new agreement is the first business venture in Canada between Mitsubishi and Nissan since Mitsubishi Motors joined the Renault-Nissan global alliance in 2016.

Mitsubishi Canada has never had a captive lender for retail sales, a company spokesman said. It has relied on Scotiabank, a noncaptive lender, to finance retail sales for customers and wholesale financing for Mitsubishi dealerships.

The new division of Nissan Canada Finance will be branded to Mitsubishi retail customers as Mitsubishi Motors Financial Services.

Mitsubishi Motor Sales of Canada President Tony Laframboise said in a statement the move allows the automaker to have more competitive rates and a broader range of financial options.

J.D. Power Senior Manager Robert Karwel sees the financial agreement with Nissan as a positive step for Mitsubishi's operations in Canada.

"To have a dedicated captive in a competitive marketplace, who understands leasing in particular, is certainly an asset. With lease penetration hitting nearly 27 percent so far this year, it's strategically important," Karwel wrote in an email to Automotive​ News​ Canada. "Not only does it provide another set of touch points with their customer base with an opportunity to enhance customer experience, it also will benefit dealers with a stable and reliable financial partner for their floorplanning needs, who understand the automotive retail space very well."

This year through May, Mitsubishi sales in Canada are down 4.4 percent to 9,209 vehicles.