Gm/gmac

[White92]

Apparently things are so bad at GM that it doesn't even want to do business with itself.

Automotive News reports that GM is offering dealers up to $250 in bonus money for every loan they sell to a lender other than GMAC. This latest move follows Monday's report on GMAC tightening lending restrictions, and "is an encouragement for dealerships to seek out other sources of funding," says Mike Mullaney of Hudson Pontiac-Buick-GMC in Poughkeepsie, N.Y. The program pays salespersons $100, sales managers $100 and an "employee of choice" (most likely the finance manager) another $50 for non-GMAC transactions.

An end date isn't specified, but the incentive applies to all 2008 and 2009 Chevrolet, Pontiac, Buick, GMC, Cadillac, Saturn and Hummer vehicles. If you buy a new GM vehicle with an outside lender, make sure you negotiate for some of that spiff off your your purchase price. [Automotive News]

 

[matteni]

GM still sells cars? Who knew?

 

[White92]

GM still sells cars? Who knew?

Um, yeah. Where do you think rental cars come from? :tongue:

 

[steveny]

I sold calls against my GM share and all but 500 swept from my account today. The 500 left are free because of the call money I received. I will ride them into the ground or ride it out if they make it through this. either way nothing will be lost as the shares are paid for.

 

[TC]

Well, the actual details are that GMAC is now only lending to people with credit scores of 700 and higher. So this program is to encourage GM dealers to work at finding financing for customers that GMAC won't qualify. This is actually a good move by GMAC to focus on quality borrowers even though they will not be able to serve all GM customers.

 

[LJSB]

Apparently things are so bad at GM that it doesn't even want to do business with itself.

Interesting that you would read that press release and come to that conclusion.

I know many of the sales people at that dealership, one use to work for me as a painter. Nice store.

 

[sivernsx]

I also heard that GM is now stopping from their leasing programs.
No more leaseing on any GM vehicles.
if this is true or not I am not sure. Does anyone know for a fact?

 

[tosugrad]

Well, the actual details are that GMAC is now only lending to people with credit scores of 700 and higher. So this program is to encourage GM dealers to work at finding financing for customers that GMAC won't qualify. This is actually a good move by GMAC to focus on quality borrowers even though they will not be able to serve all GM customers.

Id say they are leaving out about 90% of people that go in to purchase a GM vehicle. No joke. 700 is a real number.

 

[tosugrad]

I also heard that GM is now stopping from their leasing programs.
No more leaseing on any GM vehicles.
if this is true or not I am not sure. Does anyone know for a fact?

I know Chrysler already did this on many (most?) of their cars.

 

[White92]

I sold calls against my GM share and all but 500 swept from my account today. The 500 left are free because of the call money I received. I will ride them into the ground or ride it out if they make it through this. either way nothing will be lost as the shares are paid for.

Apparently there are 2 dealers in Texas that bought 5,000 shares of GM stock last week. If you buy a car from them before the end of the month, they'll give you 50 shares.

 

[White92]

Well, the actual details are that GMAC is now only lending to people with credit scores of 700 and higher. So this program is to encourage GM dealers to work at finding financing for customers that GMAC won't qualify. This is actually a good move by GMAC to focus on quality borrowers even though they will not be able to serve all GM customers.

Yep, 700 or higher and no longer than 60 months.

 

[White92]

I wonder if it has anything to do with GM owning 49% of GMAC and Cerburus owning the other 51%.

Rumors of a Chrysler-General Motors merger surfaced just days ago, but a new report indicates Cerberus Capital Management – Chrysler’s majority stake holder – is ramping up efforts to sell the Detroit-area automaker, whether in parts or as a whole entity.

And a deal with GM could be hammered out sooner than first thought. According to The Wall Street Journal, GM wants to finalize a deal with Cerberus by the end of the month. However, the two sides are still a long way from signing the dotted line, with plenty of details left to be sorted out.

But there is plenty of support for the deal from inside GM as well as from outside business interests. According to Automotive News, GM estimates a Chrysler merger could result in a $10 billion savings and also give GM access to Chrysler $11 billion in cash. Several banks have also been supportive of the merger, including J.P. Morgan & Chase Co. – a major banker for both automakers.

Despite the support for a Chrysler-GM merger, Cerberus is still considering breaking up Chrysler for individual sale. If Cerberus were to go down that path, Renault would join GM in the buying picture. It remains unclear exactly what assets Renault would target in that situation, but it is reported that GM would take over Chrysler’s minivan business and its Mexico truck operations.

A breakup would also likely see Cerberus selling off Mopar – Chrysler’s parts division — and Chrysler Financial.

 

[steveny]

beep beep beep beep beep beep beep beep beep...... this just in,

the government plans to purchase GM and give away a new Escalade with 24" inch wheels to everyone who does NOT already have an Escalade. It is reported to us through a governmental study that those who already have an Escalade fall into the program where the government pays off their mortgage. Unfortunately for the latter they only received 22" wheels and now will be shamed until they lay down the loot and buy 24's. We feel this spending spree will once again get the economy back on it's feet again.

 

[White92]

beep beep beep beep beep beep beep beep beep...... this just in,

the government plans to purchase GM and give away a new Escalade with 24" inch wheels to everyone who does NOT already have an Escalade. It is reported to us through a governmental study that those who already have an Escalade fall into the program where the government pays off their mortgage. Unfortunately for the latter they only received 22" wheels and now will be shamed until they lay down the loot and buy 24's. We feel this spending spree will once again get the economy back on it's feet again.

Why do I have the feeling that replacement 24" tires will now be $900 a piece and gas will go to $8 per gallon?

 

[tosugrad]

beep beep beep beep beep beep beep beep beep...... this just in,

the government plans to purchase GM and give away a new Escalade with 24" inch wheels to everyone who does NOT already have an Escalade. It is reported to us through a governmental study that those who already have an Escalade fall into the program where the government pays off their mortgage. Unfortunately for the latter they only received 22" wheels and now will be shamed until they lay down the loot and buy 24's. We feel this spending spree will once again get the economy back on it's feet again.

HA HA HA HA HA

Could happen! Obama for president! Save the poor liberals!

 

[White92]

 

[rs250]

I also heard that GM is now stopping from their leasing programs.
No more leaseing on any GM vehicles.
if this is true or not I am not sure. Does anyone know for a fact?

Chrysler and GM are no longer leasing. "A" tier credit is over 10% through GMAC. This means they don't want to finance anybody. GMAC has no access to capital.