Go Back   DealershipForum.com > Domestic Franchises and Independent Dealers > General Motors > Sales

Notices

Reply
 
Thread Tools Display Modes
Old 01-22-2009, 12:54 PM   #1
okcarl
Lotus Factory Guy
 
Join Date: Jan 2008
Posts: 182
Default GMAC Now using Black Book to determine flooring allowance

We just got word today that GMAC is now using Black Book as the value determinator for used vehicles that are being floor planned. They are allowing 80% of Black Book with no ads for equipment. This is a huge change that was completly unnanounced. We found out only when we submitted some vehicles and the value we used was rejected. Also the other change on auction units purchased from GM. They used to let you floor plan 100% now its only 90%. I could see this causing some major cash flow issues for dealers floor planned with GMAC.
okcarl is offline   Reply With Quote
Old 01-22-2009, 10:33 PM   #2
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by okcarl View Post
We just got word today that GMAC is now using Black Book as the value determinator for used vehicles that are being floor planned. They are allowing 80% of Black Book with no ads for equipment. This is a huge change that was completly unnanounced. We found out only when we submitted some vehicles and the value we used was rejected. Also the other change on auction units purchased from GM. They used to let you floor plan 100% now its only 90%. I could see this causing some major cash flow issues for dealers floor planned with GMAC.
Thanks for the post - it looks like more cash flow issues for GM dealers.

I read an article in Automotive News that detailed some of the changes that GMAC is making to their curtailment program, but there was no mention that they were changing to 80% of Black Book.

I need to promote this site to more GM dealers - I think they're facing a lot of the same challenges that the Chrysler dealers are and would benefit from sharing information on the forum.

Thanks again for the information.
XDCX is offline   Reply With Quote
Old 01-23-2009, 08:48 PM   #3
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

I didn't think anyone was using the Black Book anymore? Guess not.
SHACOS is offline   Reply With Quote
Old 01-24-2009, 06:03 AM   #4
goodone414
Senior Member
 
Join Date: Mar 2008
Posts: 174
Default

Quote:
Originally Posted by SHACOS View Post
I didn't think anyone was using the Black Book anymore? Guess not.
In the Carolinas Black Book is the most commonly used pre-owned vehicel guide, especially at the auctions. What do you use to value trades? In my area it seems NADA runs 30 days or better behind Black Book in true market ACV.
goodone414 is offline   Reply With Quote
Old 01-24-2009, 09:00 PM   #5
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

A mix of NADA, Blue Book and MMR auction values depending on the region. MMR seems to be the best overall because it most closely mirrors the real world.
SHACOS is offline   Reply With Quote
Old 01-25-2009, 08:38 AM   #6
dafuzz1956
Senior Member
 
Join Date: Oct 2008
Posts: 691
Default

Quote:
Originally Posted by SHACOS View Post
I didn't think anyone was using the Black Book anymore? Guess not.
We use mainly Black Book and Manheim on line.
dafuzz1956 is offline   Reply With Quote
Old 01-25-2009, 12:14 PM   #7
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by SHACOS View Post
MMR seems to be the best overall because it most closely mirrors the real world.
That's my vision of the future. I think the days of a printed book are numbered.

My bet is that dealerships will migrate to MMR on the Sales Desk and that managers will use their I-Phone or other wireless device to access MMR while they're at the auction.

As we witnessed this summer with $4.50 gasoline, the wholesale prices of cars and trucks changes way too fast to rely on a printed book.
XDCX is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tammy's book: Outraged - A book by Tamara Darvish srt Automotive Discussions 35 11-17-2011 06:59 PM
Anyone using Black Book's App for iPhone or Android? XDCX Automotive Discussions 15 07-04-2011 02:16 PM
Dealer rejected by GMAC finds flooring with BB&T Bank XDCX Automotive Discussions 3 06-17-2010 09:03 AM
Are all lenders using LIBOR to determine Flooring Rates? XDCX Automotive Discussions 0 12-17-2008 11:58 AM


All times are GMT -7. The time now is 10:49 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016