Register now for free access to - this week only.

Old GMAC gets shot in arm as Ally

Donna Harris covers automotive retailing for Automotive News.
A peek at the latest market share data from Experian's AutoCount suggests General Motors' old captive has been rejuvenated as Ally Financial.

In the first nine months of 2010, Ally was the nation's first-ranked lender in new-vehicle loans and the third-largest lender overall, behind Toyota Financial Services and Chase Auto Finance.

Ally's likely to make more gains in the final quarter of this year if it makes good on its stated goals to buy more nonprime paper and increase its used-vehicle loan volume.

The old GMAC was the longtime leader until the credit crisis in 2008, when Toyota Financial Services bumped it out of the top spot. GMAC's struggles continued in 2009, and it sank to fifth place in the overall AutoCount rankings.

The latest data -- though not for the full year -- suggest GMAC, reborn as Ally, has a crack at leading the pack again. Although it can't touch Toyota Financial's strong credit rating, Ally's debt ratings have improved, and so has its cost of funds.

If it can launch a successful IPO within a year -- as its former parent just did -- its debt ratings could climb. That'll reduce its cost of funds further, allowing Ally to take back market share.

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.