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sale of GM vehicles by independent GM dealers so that GM could
sell more vehicles to the independent GM dealers.
Vehicles sold under a retail rate support program were
financed at an interest rate below the prevailing market interest
rate. Independent GM dealers who participated in the program
were required to advertise the below-market interest rate to
their retail customers. As discussed earlier, independent GM
dealers were not able to earn dealer finance income from GMAC on
the rate-supported RISC's. In order to encourage independent GM
dealers to participate in retail rate support programs, GM paid
independent GM dealers who had been using GMAC's services a
stated fraction of the average dealer finance income the
independent GM dealer had earned on nonrate-supported RISC's
during a previous base period. Such payments were described as
representing a percentage of the independent GM dealers' normal
dealer financing income. Independent GM dealers who had not been
using GMAC's services were paid a stated fraction of the average
dealer finance income that other independent GM dealers in the
same geographic area earned on nonrate-supported RISC's during a
previous base period.
Retail rate support programs were structured as follows:
(1) GM sold its vehicles to independent GM dealers.
(2) GM's car divisions prepared proposals to use a
portion of their sales allowance budget on a retail rate
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