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Old 03-23-2009, 06:32 AM   #1
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Join Date: Jan 2009
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Default Remember CMA?

I'm just curious if any Dealers are currently using the CMA account with CFC. We had used it since its inception, then got scared and pulled out, but now have very slowly started using it again.
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Old 03-23-2009, 10:39 AM   #2
Join Date: Nov 2007
Posts: 14,869

I remember the last discussion we had concluded that CMA is a risky investment.

While most members agreed that a dealer would have a security interest in the new car inventory, it was unclear how much that interest would be worth.

As an example, if you had $100K in your CMA account and your OEM filed for bankruptcy most members believe that you would have a claim for $100K in new car inventory. The problem is, when would you get access to the inventory and what would its "street value" be?

It's a great topic for conversation. I was surprised that CFC didn't do a better job of addressing the "safety" of CMA accounts when they sent the letter out to dealers asking that they limit their withdrawls.
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