GMAC winds down vendor finance
GMAC Financial Services yesterday told dealers it was quitting its Australian operations from the end of the year, The Australian reported.Now controlled by private equity investor Cerberus GMAC is one source of vendor financing for Holden and Subaru and perhaps other marques as well.The newspaper reported that GMAC had receivables of $3 billion in Australia.General Motors Holden also finances vehicles through Interleasing, which switched to bank funding and away from GMAC earlier this year.Meanwile Crikey yesterday reported that GE Money "is on the verge of quitting" both its home loan and car loan business in Australia, "according to a tip received by Crikey".GE did not respond to requests for comment.However, mortgage market talk appears to accept that some sort of announcement is likely from GE next week. GE also appears to have informed some staff to expect changes in the business.GE declined to cut the delivery rate on part of its mortgage book following the cut in the cash rate last week angering all its mortgage managers and leading to speculation over the financier's plans.Presumably GE continues to seek a sale of Wizard Home Loans for which National Australia Bank was, according to reports last week, the front runner.