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g. 8.5% financing on "J" passenger cars purchased
between December 4, 1985, and December 31, 1985; and
h. 7.9% financing on a wide variety of Chevrolet,
Pontiac, Oldsmobile, Buick, Cadillac, and GMC vehicles
purchased between December 26, 1985 and February 22,
1986.
6. Effect of the Rate Support Programs
Retail rate support programs affected the number of units
financed by GMAC and GMAC's market penetration. In 1984, GMAC's
number of units financed and market penetration decreased
primarily to increased competition for automobile financing and
the absence of reduced retail rate programs that had been in
effect during most of 1983. In 1985, GMAC's number of units
financed and market penetration increased reflecting the
favorable results of various reduced rate programs (including the
rate support programs) and other incentives.
In 1985, GMAC's "average earning assets" rose $9.5 billion
principally due to the effect of several rate support programs
offered throughout the year.
GMAC's 1985 annual report contained the following statement
regarding the retail rate support programs:
A number of very successful reduced retail rate
programs offered by GMAC in cooperation with General
Motors, combined with improved availability of GM
products, contributed to the rise in the level of
deliveries. The increased volume of units financed by
GMAC under the reduced rate programs resulted in
significant growth in retail receivables and lease
assets in 1985.
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