GMAC, the UK trading style of Ally Financial,
has offered to match terms offered by Santander Consumer Finance in
providing for Vauxhall’s flagship 0% retail finance scheme, in an
unprecedented situation for UK car dealerships.

Provision of the Flexible Finance scheme
available through Vauxhall dealerships and initially run by GMAC,
formerly the captive finance partner to Vauxhall parent GM,

was switched to Santander in March, a surprise to much of the
industry.

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Vauxhall has now accepted terms from both
funders and has given individual dealers free choice as to which
they use to supply the finance scheme.

Flexible Finance provides 0% APR
representative on terms between two and five year schemes, and is
subsidised by the manufacturer at great expense. It is understood
GMAC has been keen to regain business through the scheme, and felt
it could match the costing profile of Santander’s offer during the
third quarter of 2012 and the September plate registration.

Propped twice for prime

A spokesperson for Ally Financial in Detroit
told Motor Finance: “GMAC UK is participating in the
flexible finance campaign in the third quarter, in line with our
ongoing broad support for Vauxhall and the Vauxhall dealer
network.”

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The move is part of a busy period for GMAC in
the UK, which has included
new retail and
wholesale finance deals with MG and the taking on of a

white label programme for Korean brand SsangYong.

Speaking to Motor Finance, several
large Vauxhall retailers in the UK have said the move is “good for
dealers”, with the question of whether Santander or GMAC will
receive business coming down to acceptance rates. This may also
benefit customers who now have the opportunity to be proposed for a
prime deal to two separate financers who will be in competition to
underwrite.

All retailers who commented added it was the
‘first’ or ‘only’ time they had known of such a circumstance.

Santander was unable to comment on the
situation for contractual reasons.

Further analysis of the move will be
published in
the August issue of
Motor Finance
magazine.

richard.brown@vrlfinancialnews.com