Chrysler Group customers now have an easier time of getting loans to buy cars, according to Chrysler dealers. In the past couple of months, GMAC Financial Services has become more lenient with regards to the approvals for consumer loans. This is definitely good news for Chrysler dealers, who have had to struggle with tight credit ever since Chrysler's former captive finance company, Chrysler Financial, ceased consumer leasing in August 2008.
According to the head of a large dealership group who asked to remain anonymous, GMAC is "buying well" for the first time since it was designated as the captive. He said that there had been a major change seen with the Chrysler paper being bought aggressively.
GMAC didn't give specifics on its increased retail penetration but instead, it issued a statement. GMAC talked about its commitment to support dealers with sales and that it has increased its volume of retail financing quarter-to-quarter. GMAC recently posted its first quarterly net profit since the fourth quarter of 2008.
It also revealed that it will change its name to Ally Financial to reflect the name of its banking unit. GMAC disclosed that it gained $162 million in the quarter with the strengthening of US auto sales.
At first, some Chrysler dealers felt that GMAC considered them to be second-class citizens after President Barack Obama announced on April 30, 2009, that GMAC would succeed Chrysler Financial as the captive finance company for Chrysler Group dealers.