is telling its dealers
that there's a shiny nickel or two in it for them if they can sell cars
without getting the GMAC finance arm involved. For every sale closed with outside financing, salespeople and managers will each receive $100, with an additional $50 going to someone the dealer designates. GMAC has already cracked down on borrowers with FICO scores below 700, and this looks like another move to discourage putting GM
on the hook for risky loans; let someone else take that chance, the automaker seems to be saying to its dealers. Not all dealerships
are happy with the plan, but GM and Cerberus Capital, which owns 49 percent of GMAC, must take steps to reduce potential losses. We can imagine that GM might lose some business to the newly tightened lending criteria, though there are plenty of third party loans out there, many even halfway reputable.
[Source: Automotive News
- Sub. Req. | Photo: Justin Sullivan/Getty]