Wanted: Lender for 1,000 GM vans
Dave Capps is in the business of renting vans. In order for him to stay in that business, he needs to buy new vans – 1,000 of them, to be precise. And although he's been a GMAC customer for 20 years, remains in good standing, and gets much of his current inventory financing from GMAC, he can't get the credit he needs to buy the new vans. So Capps rented a billboard in Dallas to be an appeal to anyone willing to lend him the money.
GMAC hasn't discussed why it won't give Capps the necessary credit. According to Capps, "GMAC said that they don't do vehicle loans and their new GMAC bank is prohibited from loaning money for vehicles. I have to take their word that they can't do that." We're not sure how that conversation went down, but if Capps really was told that newly minted bank holding company GMAC can't loan money for vehicles, well, we have a lot of questions.
After GMAC received a $5 billion loan from the government, it said it would open up dealer financing. A short time later, dealers said they didn't notice any opening and kept getting their credit applications rejected. While Capps isn't a dealer, he does share the need to purchase GM products to keep his business going. We don't know what GMAC's reasons are for keeping the vault locked, but we hope they're pretty good if it means turning down a guy who wants a thousand vans. Hat tip to Rick!
[Source: DFW Stangs]
Reader Comments (Page 1 of 3)
ack154 7:52AM (2/24/2009)
This is not incredibly surprising.
"Thanks for the $... now piss off!"
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notYou 10:40AM (2/24/2009)
In short, the Fed brazenly and irresponsibly changed the rules of the game, then realized that the players were dying off, gave them cash injections to keep them alive, and now you're complaining that the players don't want to go back to the slaughter.
Sorry, but the Fed can't have it both ways.
If the banks kept lending like they used to, they'd be dead again and need another bailout and you'd be screaming that they need more cash. Nothing that the Fed or Congress is doing is fixing the core problems.
*The Fed created arbitrary rules like Mark-to-Market and other Sarbanes Oxley nonsense as a reflexive knee-jerk reaction to the Enron fiasco (which by comparison is peanuts to the disaster Congress and the Fed have wrought with their "fixes") and lenders start going belly up.
Those belly ups were in large part due to the rule changes, but there were other factors at work as well... like CRA induced counterfeit mortgage values.
The Fed then decides to give the banks money to keep them afloat in the new rule structure, and the banks act in a self-preservation manner by hoarding capital. Surprise!
James 11:03AM (2/24/2009)
The stimulus, according to GMAC...is "not for rent".(2x thumbsdown!)
jsjs 2:13PM (2/24/2009)
notyou -
Uhh, you got it backwards.
It was the DEREGULATION (the "Enron loophole", credit default swaps) pushed by industry (finance, mortgage industry, commodities markets) and whose charge in Congress was led by no other than Phil Gramm - which paved the way for the current economic mess.
It's no coincidence that Gramm and his wife have their fingers all over (Gramm was a Vice Chairman of UBS and his wife was on the board of Enron).
Ultimately, industry got the loose regulations/oversight that they wished for (and paid for via campaign contributions/lobbying) and they went nuts seeking bigger and bigger profits until the whole thing inevitably collapsed around them.
Of course, we're stuck w/ the mess and having to use more of our tax dollars to try to rectify the situation.
BigWill 7:58AM (2/24/2009)
Let's see ... Hyundai's finance arm comes up with the Hyundai Assurance plans to encourage you to buy a Hyundai. GM's finance arm won't lend anybody money to buy a GM car.
So remind me again - what's the point of a GM bailout when no one can borrow money to buy GM cars?
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Sea Urchin 8:41AM (2/24/2009)
Well first of all GMAC is NOT owned by GM, it is owned by Cerberus.
Secondly, Cerberus would benefit if this guy went from GM vans to Dodge vans.
Thirdly, maybe this guy is not credit worthy.
BigWill 11:09AM (2/24/2009)
Check your facts. GM still owns 49% of GMAC, and GMAC Financial Services LLC is still the "official" financing arm of GM.
BigWill 11:14AM (2/24/2009)
I need to update my own facts - GM used some of that Treasury money to buy back GMAC shares, so as of now GM owns 60% of GMAC. IOW the "Cerberus is cutting us off" excuse is null and void.
http://finance.yahoo.com/news/GM-buys-additional-stake-in-apf-14143496.html
sam 7:58AM (2/24/2009)
Sounds like a good time to buy Ford van's
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Jorge 1:27PM (2/24/2009)
That´s what I was thinking... Econolines on the way!
fixitfixitstop 1:39PM (2/24/2009)
Van's what?
xspeedy 8:00AM (2/24/2009)
This is why GM needs to get flushed down the toilet. Even in rough times, they can't get their head out of their arse. GM should be bending over backwards to work out a deal with this guy to sell him the vans he needs.
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alex 10:18AM (2/24/2009)
GM doesn't control GMAC. Cerberus does. Now here's a towel to wipe the egg off your face.
Poopy 11:07PM (2/24/2009)
Actually, GM now holds a majority stake. Close to 60%. Not Cerberus. I think you've got more than egg on your face. Why don't you at least get your facts straight before you start making antagonistic comments dumbass!
Jobu37 8:00AM (2/24/2009)
Someone needs to introduce Mr. Capps to Ford Motor Credit. If his credit rating is as good as he claims there shouldn't be any reason that he couldn't get 1,000 Ford vans that are equal if not better on the quality front.
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AngeloD 8:08AM (2/24/2009)
GM no longer has any control over GMAC's lending practices. They sold a controlling interest in GMAC to Cerberus years ago.
Cerberus is running GMAC so as to benefit from the Mortage bailout, from TARP, and formerly to blackmail GM into taking Chrysler off thier hands, NOT to make auto loans.
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Sea Urchin 8:43AM (2/24/2009)
"Cerberus is running GMAC so as to benefit from the Mortage bailout, from TARP, and formerly to blackmail GM into taking Chrysler off thier hands, NOT to make auto loans."---------------If GMs management was smart enough to sell its financing unit to a company that DIRECTLY competes with GM, who is to blame.
If this doesn't prove that Wagoner is a moron, i don't know what will.
PaulWaldman 9:40AM (2/24/2009)
""Cerberus is running GMAC so as to benefit from the Mortage bailout, from TARP, and formerly to blackmail GM into taking Chrysler off thier hands, NOT to make auto loans."---------------If GMs management was smart enough to sell its financing unit to a company that DIRECTLY competes with GM, who is to blame.
If this doesn't prove that Wagoner is a moron, i don't know what will."
Sea Urchin,
Cerberus bought Chrysler a year AFTER GM sold GMAC.
alex 10:22AM (2/24/2009)
Actually SeaUrchin, Wagoner looks pretty damn smart for selling GMAC off. They were a cash cow for GM back in the day, but have suffered heavy losses ever since GM sold them. And to reiterate the point above... he sold GMAC to Cerberus long before they were in the automotive business.
Stan Man 8:14AM (2/24/2009)
F%^King Bankers …… they all should be sent to prison.
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