GMAC made it official last week: General Motors dealers must look elsewhere to find loans for subprime customers.
GMAC confirmed that in March, it will close its Nuvell Financial Services subsidiary, which mostly wrote retail car loans to subprime customers. Nuvell accounted for less than 10 percent of GMAC's retail finance business, said a spokesman.
GMAC stopped funding subprime loans in October, and Nuvell stopped writing new business last week.
Last summer, GMAC also slashed its vehicle leasing business to almost nothing by raising lease rates. The GMAC spokesman said that policy will not change until vehicle sales and credit conditions improve.
Word of Nuvell's demise wasn't exactly big news to one dealer. Said Carroll Smith, owner of Monument Chevrolet in Pasadena, Texas: "Nuvell was essentially out for us some time ago."