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Classic and Berger are Michigan motor vehicle dealerships,
licensed as new motor vehicle dealerships by the Michigan
Department of State. They are also licensed as "installment
sellers" by the State of Michigan, Financial Institutions Bureau.
An installment seller is authorized by the Michigan Motor Vehicle
Sales Finance Act to enter into installment sales contracts with
any of its customers who desire and qualify for financing.
Installment sales contracts are written by dealers on behalf
of a variety of financial institutions and assigned to the
financial institution without recourse against the dealer.
Dealers use the financial institution's forms when arranging the
financing. When a buyer of a motor vehicle finances the vehicle,
the buyer completes a credit application. After the buyer's
credit is approved, the buyer enters into an installment sale
purchase agreement for the vehicle. The installment sale
purchase agreement is immediately assigned to the financial
institution through which the dealer has arranged financing.
Upon assignment, the dealer receives payment from the financial
institution for the installment sale purchase agreement that was
assigned to it.
During 1990, Classic sold a total of 3,112 new and used
motor vehicles; 1,888 of those vehicles were financed with
dealer-arranged financing. Classic received gross income from
dealer-arranged financing of $280,529. Berger sold a total of
5,290 motor vehicles; 2,561 of those were financed with dealer-
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Last modified: May 25, 2011