- 6 -
was also known as the "market discount" rate). GMAC's buy rate
reflected a market rate of interest. If the interest rate the
RISC carried equaled the GMAC buy rate, GMAC paid face value for
the RISC.
Independent GM dealers were not legally required to assign
any RISC to GMAC, and GMAC was not legally required to accept any
RISC offered by an independent GM dealer to GMAC. GMAC, however,
accepted assigned RISC's from independent GM dealers provided the
retail customer and the terms of the RISC met GMAC's credit
standards.
During 1985, for approximately 41 percent of all GM vehicles
sold by independent GM dealers, the customer executed an RISC
with the independent GM dealer, and the independent GM dealer
then assigned the RISC to GMAC. This represented GMAC's highest
market share since 1931.
Between 1984 and 1986, GMAC accepted assignment of
approximately 75 percent of the total number of RISC's that
independent GM dealers offered to GMAC. GMAC conditionally
accepted another 10 percent of such RISC's subject to the retail
customer increasing his or her downpayment or adding a cosigner.
GMAC rejected approximately 15 percent of the RISC's independent
GM dealers offered to GMAC.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011