GMAC's Curtailment Schedule

[XDCX]

While we've spent a fair amount of time reviewing the impact that Chrysler Financial's Curtailment Schedule is going to have on their dealers, I thought it would be interesting to review GMAC's schedule.


Here's GMAC's Curtailment Schedule which will begin this March:

• 10% of the Original Balance per month for all 2007 models
• 10% of the Original Balance per month for 2008 models invoiced before 9/1/07
• 5% of the Original Balance per month for all 2008 Non-GM vehicles
• 2.5% of the Original Balance per month for demonstrators and previous shop rentals

Unlike CFC, it does not appear that GMAC imposes a monthly fee for vehicles that are more than 180 days old.

[dgale]

In addition, GMAC in many cases is placing 5% curtailments on 2008 GM vehicles 180 days and older . As far as used cars they are looking for 10% curtailment on units 90 days to 179 days and full payment on anything older than 180 days. I soon suspect that some sort of curtailment schedule will be placed on 2009's for dealers that are on their hit list.

[XDCX]

Originally Posted by dgale

In addition, GMAC in many cases is placing 5% curtailments on 2008 GM vehicles 180 days and older . As far as used cars they are looking for 10% curtailment on units 90 days to 179 days and full payment on anything older than 180 days. I soon suspect that some sort of curtailment schedule will be placed on 2009's for dealers that are on their hit list.

Thanks for the information.

At first glance the GMAC Curtailment Schedule didn't look too bad, but your information puts that in a different light. To the extent that many dealers still have a heavy inventory of 2008 vehicles, a 5% monthly curtailment for units over 180 days would hit hard.