GMAC says most dealers will qualify for financing

Responding to concerns that a lack of financing may cause more Chrysler dealers to close up shop, GMAC Financial Services President Bill Muir says the number of dealers that don’t qualify for new loans through the lender is likely to be small. According to Muir, the vast majority will be approved as GMAC takes over floorplan financing from Chrysler Financial.

Although some dealers have already closed down due to lack of financing, GMAC has declined just 29 dealers who own a total of 41 Chrysler, Dodge or Jeep dealerships because they have insufficient assets and too much current debt to Chrysler Financial to meet GMAC’s funding requirements.

Chrysler purged its dealer rolls last spring, terminating 789 franchises, a cut that is still being questioned in Congress. The company has said the remaining dealerships are critical to its future success.