GMAC has lost its exclusive rights to offer low-interest loans to customers who want to purchase GM vehicles. The loss is part of GMAC’s federal bailout and decision to become a bank, reports Reuters.
GMAC also said it will have no obligation to finance leased vehicles, according to a U.S. Securities and Exchange Commission filing.
GM will now be able to offer its customers low-interest loans through other lenders, which gives its customers more financing options. This could help GM increase sales by getting more buyers approved for financing.
Although GMAC is the main lender to customers who buy GM cars, GM won’t have to rely on GMAC so heavily for loans for its customers now. GMAC also finances GM dealer inventories. GMAC previously paid GM an annual exclusivity fee and was required to meet various financing targets for loans and leases under an agreement that had been in effect through November 2016, the SEC filing stated.