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MacMaster Buick GMC benefits from GMF Canada's nonprime retail program

Published February 4, 2013

When speaking with Danny Bracket, President of MacMaster Buick GMC, in Orangeville, Ontario, you can't help but notice the sense of pride that he has for his dealership and its customers. And, GM Financial Account Representative (Account Representative), Chris Jamieson couldn't agree more, "You just feel like part of the family when you walk into that store."

Beginning last summer MacMaster Buick GMC started seeing an increased need for nonprime financing at their store. According to Equifax Canada, 16 per cent of Canadians with active credit have a bureau score of 679 or below, and are considered nonprime. During the economic downturn many consumers fell on hard times, and now those same customers have rebounded with steady employment, but are still feeling the pinch of catching up on finances with less income in several cases. "The 2009 credit crunch was a challenging time for some consumers. But things are looking brighter, buyers are out there, they just need someone to work with them," noted Bracket.

"When we launched our nonprime retail program in August, I spent some time with Danny and explained how GM Financial's retail program could help his business. Our relationship with General Motors provides a subvention program that gives customers with challenged credit more opportunity to get into a new vehicle with a workable rate for their situation," said Jamieson.

"Chris did an excellent job of explaining how the nonprime program worked and how we could help customers in this situation. Few sales managers do what Jamieson did when he came to visit me," noted Bracket. "He explained the opportunities not just for the consumer, but for the dealer, and now we're embracing the products."

Subvention support from GM makes it possible for GM Financial to offer customers an attractive interest rate for financing their next GM vehicle. The program enables dealers to attract consumers with a credit score under 680, plus the 84-month loan terms reflect the necessary flexibility that consumers are looking for considering their situation.

DealerTrack estimates that 600,000 nonprime consumers apply for an auto loan annually, but only 72,000 of those applications are funded. Nonprime consumers are looking to buy vehicles as they rebound from the past few years, but they need flexibility from a dealership and manufacturer to work with their credit needs. The nonprime category doesn't necessarily mean delinquent payments either as stated by a recent Equifax report, the Q3 Quarterly Credit Trends Report noted that captive auto finance loans grew by 9 per cent over the last year, and have the lowest level of delinquency.

It is clear that Canada is in need of a nonprime auto finance program geared toward this specific buyer and the dealerships that want to work with them. "I have not seen such a strong need for nonprime financing since 2006. GM Financial works with us with their subvention program", continued Bracket. "And they don't respond with crazy rates for those who don't qualify for subvention. I've been very pleased with their products; they work hard to make deals that work for us."