The sale of Ally Financial’s Canadian auto finance arm, Ally Credit Canada Limited, and ResMor Trust to Royal Bank of Canada has been completed.
According to today’s announcement, Ally (www.ally.com) received $4.1 billion for the operations in the form of a $3.7 billion payment at closing, and $400 million of dividends paid after the transaction was announced. The premium book value is approximately $620 million.
Ally announced the agreement to sell the Canadian operations in October 2012, the same month it agreed to unload its Mexican insurance subsidiary. An agreement to sell auto finance operations in Europe, Latin America, and a joint venture stake in China followed in November. Those remaining transactions are expected to be complete throughout the year.
The sales are part of plans to “further strengthen Ally and best position the company to return additional capital to the U.S. Treasury,” Ally Chief Executive Michael Carpenter said in a statement, adding that the sales would “enable Ally to further strengthen and grow our leading U.S.-based automotive services and direct banking franchises.”
Ally Financial offers financing products and services, including new- and used-vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. As of Sept. 30, 2012, Ally Financial had roughly $182 billion in assets.
Good question Frank.
The lender has complete control over the risk models and the terms they load.
They control all aspects of the loans they will accept and the dealer has no way to get around them. The dealer has no access to the lenders data that is loaded in the Lender Selection .
We designed the system with a Dealer and Lender section. Each separate from the other with the exception that the lender if they are selected by the Customer/Dealer can then have access to the Dealer section to see what the dealer has put together for the Customer.
The Lender could even have audio link up with the Customer as they set in the dealer’s office. It’s like the Customer, Dealer and Lender are all in the same room discussing the deal.
Even with the new legislation that Obama is trying to pass right now our system would work because the lender has final control over everything.
I believe most Dealers are basically honest and want to do the right thing while they make a living. It has too work for all parties and our system brings all the parties to the table.
Bill