GMAC to Start Ally Dealer Rewards

GMAC Financial Services announced to day that starting October 1, dealers still working with them will be paid bonuses ranging from $50 to $100 for every contract for new and used cars, in an amount to be established based on finance contract volume with the lender, Autonews reported.

The program is called Ally Dealer Rewards and besides bonuses, also stipulates penalties. Dealers which will have low GMAC contract volume with higher rates on their vehicle inventory credit lines will have to pay.

According to the programs' provisions, is under 25 percent of the dealership's retail finance business goes to GMAC, the floorplan interest rate increases half a percentage point. The floorplan rate remains the same if the retail finance business is 25 percent or above.

Below is the list of bonuses as established by GMAC:

• $50 per new-vehicle contract if 35 to 40 percent of their retail business is with GMAC
• $100 per new-vehicle contract if 40 percent or more of their retail business is with GMAC
• $50 per used-vehicle contract for hitting a specific dealer finance target
• $100 per used-vehicle contract for reaching 150 percent of a finance target

Earlier this month, GMAC also announced it has decided to expand its availability of leasing options to include Chrysler vehicles. For Chrysler, the leasing offers for 2010 models of the Chrysler Town & Country, Dodge Grand Caravan, and Dodge Journey end on September 30.

Leasing operations have been reinstated since mid-August, "in support of a lease promotion offered by General Motors on select GM models as well as with competitive standard rates on all new GM vehicles."