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customer's purchase price of the vehicle even though the RISC
carried a below-market interest rate (i.e., the RISC's fair
market value at the time of purchase was less than its face value
at the time of issuance). If the participating independent GM
dealer offered to assign the RISC to GMAC and GMAC accepted the
RISC, GMAC paid or credited the independent GM dealer an amount
equal to the face value of the RISC (which was greater than the
RISC's fair market value at the time of purchase).9
4. The Retail Rate Support Payment
When GMAC acquired a retail customer's RISC carrying a
below-market interest rate (i.e., a rate-supported RISC) from an
independent GM dealer, GM paid (or credited to) GMAC an amount
(the retail rate support payment) equal to the difference between
the face amount of the RISC and the fair market value discounted
at GMAC's buy rate.10 GM paid GMAC the rate support payment to
9 GMAC never paid an independent GM dealer more than the
fair market value for an RISC in the absence of a retail rate
support program because GMAC's margin for profit on an individual
RISC was very small. If GMAC paid more than the fair market
value for an RISC without receiving a retail rate support
payment, GMAC would have experienced a loss on the RISC (i.e.,
the expenses would have exceeded the income on the RISC).
10 The retail rate support payment GM made to GMAC
represented the difference between the amount GMAC paid the
independent GM dealer for the RISC under a retail rate support
program and the amount GMAC would have paid the independent GM
dealer for the RISC in the absence of such a program.
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