Ally boosts dealer credit lines
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DETROIT -- Auto finance company Ally Financial Inc. said it is increasing wholesale credit lines for dealers to take advantage of the U.S. auto market momentum, expanding limits for more than 40 percent of its U.S. dealer clients in the first quarter.
“The flexibility in our credit line administration not only supports dealers, but also aligns with accelerated manufacturer production levels,” Ally Financial President Bill Muir said in a statement. “We are seeing strong demand for increased inventory financing for both new and used vehicles as dealers seek to fully stock their lots and maximize their sales potential.”
Ally attributed the market momentum to improvements in the economy, availability of consumer credit, interest in new and refreshed products for sale and pent-up demand from consumers looking to replace aging vehicles.
The company also said it is increasing its U.S. underwriting staff by 15 percent from year-end levels to handle more consumer financing applications.
The U.S. Treasury put $17.2 billion into a bailout of Ally during the financial crisis and now owns 74 percent of the company. Ally is the former GMAC Financial Services, General Motors’ old captive finance arm.
You can reach Ellen Mitchell at emitchell@crain.com.
