01-22-2009, 12:54 PM | #1 |
Lotus Factory Guy
Join Date: Jan 2008
Posts: 182
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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.
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01-22-2009, 10:33 PM | #2 | |
Administrator
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Posts: 14,869
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Quote:
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. |
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01-23-2009, 08:48 PM | #3 |
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I didn't think anyone was using the Black Book anymore? Guess not.
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01-24-2009, 06:03 AM | #4 |
Senior Member
Join Date: Mar 2008
Posts: 174
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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.
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01-24-2009, 09:00 PM | #5 |
Super Moderator
Join Date: Jan 2008
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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.
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01-25-2009, 08:38 AM | #6 |
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01-25-2009, 12:14 PM | #7 | |
Administrator
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Quote:
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. |
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