How are your local dealers doing?

[Beels]

Is GMAC not a US company? I thought we were talking Canada here. Why would they want to loan over invoice anyway? I know they did do this a lot. That's asking for trouble if you ask me. What if they had to repo the vehicle because of missed payments. The loan is worth more than the vehicle. It's a lose lose situation.

They only lenders that are cutting back loans in Canada to good credit customers are owned or funded by American companies. Citifinacial,AGF,GMAC.ect.

GMAC does business in Canada so what difference does it make? It's not like they're going to finance some numbnutter with a 450 credit score that way.

 

[m8matt]

GMAC does business in Canada so what difference does it make? It's not like they're going to finance some numbnutter with a 450 credit score that way.

They problem is that it is funded by the American side of it. Liquidity problem on the American side leads to liquidity problem on Canadian side. The basic guidelines will be they same on both sides. Prime example: Resmore Trust (Canadian company) bought by GMAC (US company). Within a few months they went from 15 plus really good mortgage products. They now have less than 5. All caused by lack of available funds and tighter guidelines.

As for not financing the guy with 450 credit score. Why would they want to borrow that guy money anyway? It still come down to the same 1 thing.....lack of available credit.

Matt

 

[powderkeg]

Why would they want to loan over invoice anyway? I know they did do this a lot. That's asking for trouble if you ask me. Matt[/QUOTE]

Invoice is what the dealer pays, not the suggested retail price. The lender should be willing to loan more than invoice. lending more than the car is worth is asking for trouble, your right. That is not what he was describing...

 

[m8matt]

Why would they want to loan over invoice anyway? I know they did do this a lot. That's asking for trouble if you ask me. Matt

Invoice is what the dealer pays, not the suggested retail price. The lender should be willing to loan more than invoice. lending more than the car is worth is asking for trouble, your right. That is not what he was describing...[/QUOTE]

Your right....sorry. Typing between phonecalls...haha.