GMAC, the UK trading style of Ally Financial, has offered to match terms offered by Santander Consumer Finance in providing for Vauxhall’s flagship 0% retail finance scheme, in an unprecedented situation for UK car dealerships.
Provision of the Flexible Finance scheme available through Vauxhall dealerships and initially run by GMAC, formerly the captive finance partner to Vauxhall parent GM, was switched to Santander in March, a surprise to much of the industry.
Vauxhall has now accepted terms from both funders and has given individual dealers free choice as to which they use to supply the finance scheme.
Flexible Finance provides 0% APR representative on terms between two and five year schemes, and is subsidised by the manufacturer at great expense. It is understood GMAC has been keen to regain business through the scheme, and felt it could match the costing profile of Santander’s offer during the third quarter of 2012 and the September plate registration.
Propped twice for prime
A spokesperson for Ally Financial in Detroit told Motor Finance: “GMAC UK is participating in the flexible finance campaign in the third quarter, in line with our ongoing broad support for Vauxhall and the Vauxhall dealer network.”
Speaking to Motor Finance, several large Vauxhall retailers in the UK have said the move is “good for dealers”, with the question of whether Santander or GMAC will receive business coming down to acceptance rates. This may also benefit customers who now have the opportunity to be proposed for a prime deal to two separate financers who will be in competition to underwrite.
All retailers who commented added it was the ‘first’ or ‘only’ time they had known of such a circumstance.
Santander was unable to comment on the situation for contractual reasons.