General Motors Corporation and Subsidiaries - Page 16




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                    (5) In order to participate in a retail rate support               
               program, independent GM dealers had to elect to be in the               
               program.                                                                
                    (6) The retail rate support program required                       
               participating independent GM dealers to charge the retail               
               customers an interest rate that was no higher than the                  
               below-market interest rate offered under the retail rate                
               support program.                                                        
                    (7) GM (through its car divisions), GMAC, and the                  
               independent GM dealers announced the retail rate support                
               program to the public.                                                  
               Interest rates in a retail rate support program often varied            
          based on the term of the RISC.  Generally, an RISC with a term of            
          49-to-60 months bore a higher interest rate than an RISC with a              
          term of 48 months or less.                                                   
               3.  Sale of a Car                                                       
               When a participating independent GM dealer sold a qualifying            
          vehicle to a retail customer under a retail rate support program,            
          the customer could elect to make a cash downpayment and finance              
          the balance of the purchase price not paid in cash.  The retail              
          customer satisfied the balance due by entering into an RISC with             
          the independent GM dealer at the below-market interest rate                  
          established under the rate support program.  The independent GM              
          dealer credited the face value of the RISC towards the retail                





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Last modified: May 25, 2011