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Snowrider
USA
806 Posts |
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jimbo67
USA
1633 Posts |
 Posted - 07/22/2010 : 08:03:13
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As I work for a GM dealer, I've been predicting a move like this for 6 months. GM NEEDS their own finance arm to succeed and selling GMAC was a huge mistake from the start. Now, if the sale goes through, we can get back to making deals that make sense for all parties. I only worry that Americredits recent buying habits may cause future financial concerns.
If the right relationship is everything, why does every deal have to stand on its own merit to be approved? |
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gadna50
Ireland
14377 Posts |
Posted - 07/22/2010 : 08:06:38
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I've always looked at americredit's buying patterns and compared them to a bipolar person, every now and again they need rehab, it's only a matter of time I think.
Isn't sandater or drive backing americredit?
GADNA |
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dux hunt
USA
178 Posts |
Posted - 07/22/2010 : 08:57:57
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So let me get this straight.
GM gets bailed out of the GMAC problems and owes us (tax payers)over $5 billion under the TLGP program. Now they go out and spend $3.5 billion of our $ (remember they still owe the gov't) to buy a company to do Sub-Prime -AGAIN!.
Am I missing something???? |
Edited by - dux hunt on 07/22/2010 09:00:37 |
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JimD
USA
11848 Posts |
Posted - 07/22/2010 : 09:00:46
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Last time GMAC got involved with subprime, NUVELL damn near took them down...right?
I used to wonder if the insane aren't the lucky ones. Now I've decided they are. "No they aren't."..."Yes they are"..."NO, they aren't!"..."YES, they ARE!" |
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jimbo67
USA
1633 Posts |
Posted - 07/22/2010 : 09:48:17
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I think Americredit will become the "new" GMAC. GMAC will soon cease to exist and as Ally becomes the brand, they are also becoming another big bank, i.e. like Chase, BOA, Wells Fargo, and all the rest. GM needs a finance arm to handle transactions in a different manner than traditional banks. Commercial buyers, for example, have to meet ridiculous requirements that make no sense. We have a customer that is turning in 4 GMAC leases that were never paid even a day late and has been using GMAC for 20 years, but can only get approved for 2 new ones. For any more, they would have to submit 2 years tax returns for both the company and the guarantor..who has a mere 800 credit score and makes 500k a year. Even retail customers are not exempt from the stupidity of Ally. I have a customer with an 847 score and tons of credit and income, homeowner (10 million dollar house...no mortgage) and GMAC wants money down because the buyer wants a $75k Escalade at 0%. Lately GMAC has proven themselves worthless to me and my dealership.
If the right relationship is everything, why does every deal have to stand on its own merit to be approved? |
Edited by - jimbo67 on 07/22/2010 09:48:57 |
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CWRACING
USA
133 Posts |
Posted - 07/22/2010 : 09:48:55
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| ALL I AM GOING TO SAY IS WTF!!! |
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swiftus27
USA
1373 Posts |
Posted - 07/22/2010 : 09:53:51
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I can't wait to see the fallout from this one.
How many more reps will be let go? How many buyers will be shown the door? Who knows?!?!?
I honestly just dont understand the finance companies. Mine is too scared to really delve deep into sub prime. But the others are simply making horrible decisions. Again, we are seeing 72 mo terms on terrible customers. Again, we are seeing lenders go way over retail value on loans. Again, we are seeing customers who should permanently ride a bus get bought on cars they can never afford. Sure, this is great for many car stores, but we can easily end right back where we all started about 1.5-2 years ago.
How many times can these same people/businesses keep putting their hand on the hot stove until they realize that it is not a good idea? |
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velvetpimp
USA
661 Posts |
Posted - 07/22/2010 : 10:28:36
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quote:
Originally posted by jimbo67
I think Americredit will become the "new" GMAC. GMAC will soon cease to exist and as Ally becomes the brand, they are also becoming another big bank, i.e. like Chase, BOA, Wells Fargo, and all the rest. GM needs a finance arm to handle transactions in a different manner than traditional banks. Commercial buyers, for example, have to meet ridiculous requirements that make no sense. We have a customer that is turning in 4 GMAC leases that were never paid even a day late and has been using GMAC for 20 years, but can only get approved for 2 new ones. For any more, they would have to submit 2 years tax returns for both the company and the guarantor..who has a mere 800 credit score and makes 500k a year. Even retail customers are not exempt from the stupidity of Ally. I have a customer with an 847 score and tons of credit and income, homeowner (10 million dollar house...no mortgage) and GMAC wants money down because the buyer wants a $75k Escalade at 0%. Lately GMAC has proven themselves worthless to me and my dealership.
If the right relationship is everything, why does every deal have to stand on its own merit to be approved?
I work for a Chrysler dealer and have just recently got to enjoy GMAC(ALLY) first hand. I love when they need all stips upfront before even telling you what the customer will qualify for. Nothing like jumping through hoops for a deal structure that wont work.
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"This space reserved for Jacques or Busman after my next sig bet loss." |
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WhatUSay
USA
1859 Posts |
Posted - 07/22/2010 : 10:38:40
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| The economy cannot jump start itself until people start buying - IMHO this is a good move. |
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Snowrider
USA
806 Posts |
Posted - 07/22/2010 : 10:39:31
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I've got GM stores and Chrysler stores. Chrysler just signed with Santander to pick up the non prime.
Anybody have any experience with Santander? How do they buy, fund, etc.
What should I be looking for? |
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jimbo67
USA
1633 Posts |
Posted - 07/22/2010 : 10:50:09
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quote:
Originally posted by Snowrider
I've got GM stores and Chrysler stores. Chrysler just signed with Santander to pick up the non prime.
Anybody have any experience with Santander? How do they buy, fund, etc.
What should I be looking for?
GFL..horrible customer service. Hated them when it was Drive and hate them more now
If the right relationship is everything, why does every deal have to stand on its own merit to be approved? |
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hundo
USA
245 Posts |
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Big Coin
299 Posts |
Posted - 07/22/2010 : 11:53:38
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quote:
Originally posted by WhatUSay
The economy cannot jump start itself until people start buying - IMHO this is a good move.
Having a finance arm that doesn't have a sound business practice will not jump start our economy. Americredit had losses last quarter of 7+%. That's the kind of business that is going to jump start us?
It is going to be some time before we see some stability. People are still leary of losing their job and for good reason. Unemployment claims just rose again, small businesses are closing daily, big businesses are cutting expenses (layoffs) as a way to show a profit.
According to Americredit's last quarterly report they had about $750MM liquidity and originate about $625MM in loans. If they did that again this quarter than they are just about out of money. Is this a round about way of a government bailout? With $9 billion in auto recievables there is no way the government was going to let them go under. |
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CU Defender
Vatican City
2392 Posts |
Posted - 07/22/2010 : 13:24:49
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What a crazy crazy world. Glad to see my tax dollars going to something other than just graft and greed.
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Honk if you love peace & quiet. |
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WhatUSay
USA
1859 Posts |
Posted - 07/22/2010 : 14:30:57
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| BC I could not agree with you more, however its my job to get you sources to secure financing for my customers. Its your job to maximize profit. AS I said I could not agree with you more, we need to leave GM's business plan to General Motors Management. |
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Topic |
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GM Buying Americredit
