05-01-2009, 11:01 AM | #1 |
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Join Date: Nov 2007
Posts: 14,869
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How's GMAC as a Captive Lender?
As part of their bankruptcy announcement, Chrysler informed their dealers that GMAC would become their new captive lender - replacing Chrysler Financial.
Given this chance, what should the Chrysler dealers expect?
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05-01-2009, 03:08 PM | #2 |
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Join Date: Oct 2008
Posts: 47
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Now that GMAC is considered a bank they adhere to strict lending policies. When it comes to floor plan checks they are very critical. For example, if they capture five deliveries due for payoff with one beyond the normal payoff grace period they consider that you have 20% delays (almost out of trust) for an unacceptable 20 % rate. However, if you are current on all payments, but somehow misfiled one deal without paying it off, you are 100 % out,"and the number of delays would e considered excessive" and this can be grounds to raise your floor plan rate. Makes no sense, almost better off holding your deals till they are due in case of a floor plan check. Also, do to a lack of field reps handling applications when they need that personal attention, there is often frustration in not being able to get an answer right away. However, you will find most of the personnel very friendly and somewhat understanding given today's circumstances and the fact that they are highly influenced by Cerebus.
Last edited by dgale; 05-01-2009 at 03:18 PM. |
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