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II. Independent GM Dealers' Relationship With GM and GMAC
A. General Background
GM sells the motor vehicles it manufactures to the public
primarily through a network of independently owned dealerships
(i.e., independent GM dealers). These independent GM dealers
purchase GM motor vehicles from GM for resale to individual
customers, businesses, leasing companies, and other entities.
Some of these customers (e.g., businesses and leasing companies)
are "fleet customers". Fleet customers purchase large volumes of
motor vehicles in a single transaction.
When a retail customer3 purchased a vehicle from an
independent GM dealer, the retail customer could (1) pay cash for
the entire purchase price, (2) purchase the vehicle using third-
party financing, or (3) execute a retail installment sales
contract (RISC) with the independent GM dealer under which the
retail customer agreed to pay for the vehicle over the term of
the contract at a stated interest rate. Under the terms of the
RISC, the independent GM dealer could (1) hold the RISC for its
own account, (2) assign the RISC to a lender unrelated to GM or
GMAC, or (3) assign the RISC to GMAC.
If the independent GM dealer assigned the RISC to GMAC, GMAC
acquired the RISC at a price based on GMAC's "buy rate" (which
3 The term "retail customers" refers to all purchasers who
were not fleet customers.
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Last modified: May 25, 2011