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GMAC's 1986 Annual Report also contained similar language. The
1986 report stated:
The financial services market continues to be
intensely competitive. GMAC is meeting this challenge
with new and improved programs for consumers, dealers
and investors. Most notable last year were the
factory-supported, special rate financing plans which
contributed to GMAC's record volume and resulted in a
significant number of new and more affluent GMAC
customers. During these rate programs, financing
volume increased more than 40% and placed great demands
on the entire organization.
7. Non-GM Rate Support Programs
Some independent GM dealers also operated motor vehicle
dealerships for vehicle manufacturers other than GM (e.g., Nissan
Motor Corporation (Nissan)). GMAC purchased RISC's from these
independent GM dealers even if the automobile being financed was
not a GM vehicle. Consistent with this policy, during 1985, GMAC
participated in rate support type programs offered by three non-
GM manufacturers of motor vehicles.
From January 4 through October 2, 1985, GMAC had an
agreement with Nissan to purchase RISC's bearing an 8.8-percent
interest rate from Nissan dealers who sold Nissan trucks to
retail customers. Under this program, Nissan paid GMAC the
difference between the face amount of the RISC and the fair
market value of the RISC (discounted at the rate of 13.5 percent)
at the time of purchase.
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