BraunAbility chose to extend its relationship with Ally Financial by launching a new financing program this week that is dedicated to providing the best customer experience for individuals looking to finance a mobility vehicle.
Officials highlighted this new program, BraunAbility Finance, is designed to provide financing tools to help ensure mobility customers can afford the wheelchair accessible vehicles they need. BraunAbility Finance will continue to leverage the relationship built with Ally since 2013.
The companies indicated the program, exclusive to the BraunAbility dealer network, will be a critical step to making mobility more affordable. Combined with Ally’s long history of financing vehicles, they believe BraunAbility Finance will have the experience and integrity of a leader in automotive financial services.
“Ally is proud to continue our relationship with BraunAbility as it launches BraunAbility Finance,” said Jim Kucharski, vice president, sales alliance, for Ally. “Together, BraunAbility and Ally are bringing affordable financing options to customers to help give them the freedom to be mobile.”
In addition to consumer financing, BraunAbility Finance products will include certified pre-owned vehicles, service contracts and GAP insurance.
“Our company mission is straightforward: We are devoted to making life a moving experience for all,” BraunAbility president Nick Gutwein said. “Together with our dealers and the support of Ally, we will advance this mission by expanding affordability and putting more customers on the road.”
According to the credit reporting agencies, roughly 56 percent of Americans have what can be categorized as nonprime to subprime credit. A recent Equifax report indicated that only 44 percent of Gen Y customers have prime credit, while the rest suffer under the blanket definition of nonprime.
But there’s a catch.
These figures are skewed by the high number of Gen Y borrowers with thin files and high student loans. In other words, everyone gets lumped into the same category no matter what the reason.
This has created a bit of confusion among dealerships in differentiating actual nonprime customers with those who simply look nonprime on paper. As a result, it’s brewed up a perfect storm of discontent among Gen Y auto buyers who loathe the idea of spending hours trapped inside a dealership awaiting credit approval.
Even Gen X customers are growing tired of the same old worn out methods of buying cars. As a result, there’s been a spike in the growth of online services geared at helping buyers through the experience with as little pain as possible.
Old Ways Die Hard
Recently, Penske Automotive Group announced plans to compete with CarMax for the lion’s share of the new market of online used-car sales. Nonprime car shoppers represent the group most likely to benefit from this move, both in time saved and the volume of lending terms granted.
Meanwhile, still stuck in the primordial muck and unwilling to take that first evolutionary step forward are the old-fashioned car dealers of the world. For these dinosaurs, the idea of adapting their way of doing business is about as unthinkable as a T-Rex sprouting wings and taking flight. Their collective mindset expresses one simple, dangerous thought: Gen Y customers will have to adapt to their antiquated methods, or take it elsewhere.
This lack of willingness to evolve — to work out ways of bringing speed and ease to auto buying transactions — isn’t surprising. These voices of the past have been wielding the “if it doesn’t fit, force it” mindset for ages.
But where will these same creatures of habit be a few years down the line when allegations of “strong arm” sales tactics arise from agencies like the Consumer Financial Protection Bureau, filed by customers who felt coerced into buying something they couldn’t afford — all because of a lack of a streamlined, efficient process?
It’s an attitude of defiance and resistance we’ve all seen before.
Back in the old days when menu selling was first introduced, many reacted as if the sky was falling. It was as if they couldn’t wrap their heads around the concept.
They had trouble comprehending why anyone in their right minds would want to embrace a culture of transparency in auto sales.
Change didn’t happen overnight. But before long, those who implemented menu selling realized previously unseen levels of product penetration and before long, there was no looking back.
Current Landscape
Fast-forward to today, where we find ourselves at a similar crossroads — introducing even more new-age concepts that will no doubt turn all those dealerships still clinging to their tried and true methods on their backs.
Making it easier for customers to purchase, regardless of whether they’re prime or subprime, is no longer an issue of “if” but a question of “when?”
Efficiency is the driver of sales. Reducing the time a customer spends buying a car doesn’t just mean profits earned this month or this quarter, but years on down the line, as well.
On the other hand, taking too long to complete the F&I process can result in a lost sales, reduced profits, eroding customer loyalty and legal scrutiny.
Savvy dealers such as CarMax and Sonic Automotive know this. They have seen the pot of gold at the end of the rainbow, and they’re lunging for it, willing to make adaptive changes in order to gain market share.
Although that share today only represents 11 percent, that figure is growing. With more available resources than ever before, car buyers are flocking to the likes of these transparent dealers in the hopes of finding the best deals possible in the shortest amount of time.
Chief among the efforts of the likes of CarMax and Sonic is the understanding that individual customers are more than simply a beacon score. These guys “get it.”
Which leads to the obvious question: if the giants of the auto industry are giving in to customer demand because they see it as a profitable pursuit, shouldn’t this concept cause the doubters to sit up and take notice?
The Bottom Line
Dealerships today can no longer classify buyers as nonprime or subprime based on their beacon scores alone.
Today, a 640 score could represent 10 different variations of credit history. With a growing number of lenders changing their methods to examine individual circumstances — such as thin or nonexistent credit files — the onus is now on dealerships to do the same.
How is this accomplished?
First, by admitting that a change is necessary. Next, it requires the implementation of a streamlined process by which the issue of credit approval is broached long before a customer decides on a particular car.
By getting all those ducks in a row, and by landing customers on cars they can actually qualify for, dealerships can slash away at the extensive amounts of time nonprime customers have to spend on the lot.
In order to make it all come together, dealerships must take a long hard look at their processes and ask themselves some difficult questions.
• Are they adding unnecessary time by landing customers in cars before asking prudent fact-finding questions that can give insight into the buyer’s creditworthiness?
• Is the sales staff trained on the best methods of obtaining standard credit criteria?
• Can methods be employed to bring F&I into the process sooner, rather than later?
• What steps are being taken to understand customer budgets against lender guidelines?
There’s an irony present throughout all of this.
As recently as five years ago, dealers across the country swore up and down they’d never put their inventories on third-party websites. One look around at sites like AutoTrader.com or TrueCar.com shows a very different story today.
Perhaps in another five years, it will be commonplace for dealerships to adapt their processing strategies in a manner conducive to a more streamlined, painless in-dealership experience.
The race begins today. Those who aren’t already toeing the line will be left behind in the dust kicked up by the competition.
Rebecca Chernek, who founded Chernek Consulting in 2001, has nearly three decades of dealership experience ranging from working with her father at their family-owned dealerships in Have De Grace, Md., to district manager for the AutoNation division of the JM&A Group. She can be reached at (404) 276-4026 or via email at [email protected].
Pre-qualified monthly payment marketing technology provider DriveItNow now offers dealer website hosts a comprehensive and compliant credit services solution for their customers. Officials highlighted the six major capabilities of this solution — DriveItNow’s Credit Center.
The company explained that since most consumers finance or lease their vehicles, today’s dealer websites provide a variety of what officials described as “disjointed and often conflicting” credit-related services. These services can include items such as a “get pre-approved” product, generic payment calculators, a search-by-payment option, trade-in valuations and full credit applications that require personal information.
DriveItNow president Tarry Shebesta pointed out these services are usually from different vendors that require the shopper to provide their information multiple times.
“DriveItNow’s Credit Center ties all auto finance-related services together through one simple-to-integrate website widget,” Shebasta said. “Online shoppers can easily access what they need in one place without having to provide personal information or complete multiple forms.”
At the core of the Credit Center platform is DriveItNow’s patent-pending pre-qualification payment quoting technology. Shebesta indicated that real monthly payments are quoted using the dealer’s finance company programs and the consumer’s actual credit bureau, without requiring a Social Security Number or date of birth or affecting the consumer’s credit score.
“Other industry services that quote monthly payments and finance rates are not always accurate or compliant and are not based on the consumer’s actual credit bureau,” Shebesta said. “Those services display best-case scenarios which may give shoppers an unrealistic expectation of what they can actually afford to buy.”
Shebesta also mentioned the Credit Center integration is simple, totally customizable and can give website providers that offer SEO/SEM services additional keyword marketing opportunities.
DriveItNow also displays fully compliant disclosures and works with compliance experts to ensure dealers comply with federal rules and regulations of the Fair Credit Reporting Act and Consumer Financial Protection Bureau.
DriveItNow’s Credit Center services include:
• Short-form finance application with instant pre-qualification
• Pre-qualified monthly payment buttons on vehicle inventory
• Shop-by-payment functionality
• Trade-in equity calculation
• OEM loan and lease special promotions
• Real-time “soft pull” full credit bureau reports
Shebesta also noted all Credit Center services can be accessed from various links throughout a website, within email marketing campaigns or social media.
“Other industry vendors are trying to play catch up as we continue to lead in this market segment,” Shebesta said. “Our 14 years of online experience as a direct-to-consumer finance company, and dealer, gives us the advantage in knowing what engages online shoppers. We don’t rely on surveys or focus groups.”
A mobile version of these services is also available and is compatible with responsive website platforms.
DriveItNow’s Credit Center is available to dealers, OEMs, classified and finance portals and website vendors.
For more information, visit www.DriveItNow.com or call (800) 223-4882, ext. 10.
The U.S. Attorney General’s office, the Internal Revenue Service and the FBI brought charges against two managers and three other salespeople at an Alabama franchised dealerships in connection with a conspiracy to fraudulently boost loan approvals and vehicle sales.
According an announcement made on Wednesday, a federal grand jury last week indicted a third sales manager, a finance manager and three salesmen who work, or previously worked, at Serra Nissan in Birmingham, Ala.
According to officials, Scott Burton, 36, of Odenville; Michael Wilkinson, 56, of Moody; Dwight Perry, 44, of Birmingham; Terry Henderson Jr., 39, of Pleasant Grove; and Roland Riley, 28, of Birmingham, on conspiracy, bank fraud, wire fraud and aggravated identity theft charges.
A federal judge unsealed the indictment after the defendants were arrested Wednesday and appeared in court. The announcement came from U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard Schwein Jr.
"As managers and salesmen in a car dealership, these defendants falsified customer information used to make loans, defrauding the banks who trusted the dealership to present truthful information during the vehicle financing process, and harming customers by fraudulently inflating the value of the vehicles they purchased," said Vance, whose jurisdiction is the northern district of Alabama.
“This type of fraud is the auto-industry equivalent of the mortgage fraud that contributed to the financial meltdown, and could threaten the security of our financial markets," Vance continued..
The 11-count indictment charges the defendants with conspiring with others at the dealership, between August 2010 and October 2013, to defraud financial institutions, Nissan North America and Serra Nissan customers by fraudulently increasing vehicle sales in order to boost personal profits.
The indictment also charges Wilkinson, Burton, Perry and Riley with bank fraud for fraudulent loan information submitted to financial institutions in October 2012. Defendants Wilkinson, Perry and Henderson also are charged with wire fraud for fraudulent information submitted to automotive financing companies such as Nissan Motor Acceptance Corp. and Santander Consumer USA.
The final count of the indictment charges Perry and Henderson with aggravated identity theft for the unlawful use of a customer's Alabama-issued personal identification card during the commission of the bank and wire fraud, and the conspiracy to commit those crimes.
“Today’s arrest clearly illustrates that individuals who engage in these types of illegal activities will be held accountable for their actions," Hyman-Pillot said. “These defendants clearly took advantage of the people in their community, as well as financial institutions. They manipulated the system and falsified documents with the intention of increasing profits at the expense of others.”
The indictment of these five defendants follows federal charges earlier this year against two other sales managers at Serra Nissan — Abdul Islam Mughal and Gerald Shepard.
Officials recapped that Mughal, 48, of Trussville, pleaded guilty in July to conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to sell more vehicles by falsifying loan documents in order to defraud customers, Nissan North America and financial institutions.
They added Mughal also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions between January 2012 and October 2013. Mughal is scheduled for sentencing on May 5.
According to the indictment against the five new defendants, they and other members of the conspiracy participated in various means to carry out their fraud and obtain auto loans that, otherwise, would not have been approved. Those means included the following:
• Creating or altering documents to submit to financial institutions to show inflated income for prospective buyers.
• Directing finance managers and salesmen to submit fraudulent documents to financial institutions to misrepresent proof of a customer's residency.
• Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount. The defendants and others had a financial incentive to increase a loan amount in order to increase commissions paid to certain employees.
• Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify.
Officials also said the defendants and others also defrauded customers and financial institutions by quoting a customer an inflated monthly vehicle loan payment so that a finance manager could add a warranty and gap insurance without the customer realizing it, according to the indictment.
Officials added the maximum penalty for the conspiracy count is five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The minimum penalty for aggravated identity theft is two years in prison.
“This case is significant to the FBI not merely because of the loss amounts, but also because of the many victims left in the wake of this scheme who had trusted the defendants with handling their vehicle financing,” Schwein said
The IRS and the FBI investigated the case, which assistant U.S. Attorney Amanda Wick is prosecuting.
“The public is reminded that an indictment contains only charges. Defendants are presumed innocent unless and until proven guilty,” officials said.
Two hours: the amount of time it takes to watch a movie as well as the span it should take for the sales and financing process to be completed. At least that’s the majority sentiment, according to a new survey of dealerships from eLEND Solutions.
Results from an online survey of dealerships conducted in September showed 80 percent of participants reported their sales and F&I processes takes at least two hours or longer. Another 40 percent of stores acknowledged needing three hours or longer to get a vehicle delivered.
What’s the ideal situation? The majority of respondents — 82 percent of surveyed dealers — say the ultimate end-to-end process should take two hours or less.
Beyond just the time element, the eLEND Solutions dealer survey touched on a few other elements of the financing process.
A total of 75 percent of respondents indicated that F&I process started well after the test drive. To improve the situation, 44 of dealers surveyed mentioned that capturing more detailed information earlier in the process was the biggest opportunity to streamline the F&I process.
Not surprising to eLEND Solutions, but 90 percent of dealers agreed that a quick, efficient F&I process leads to greater customer satisfaction and higher CSI scores as 59 percent rated customer satisfaction as their store’s most important differentiator.
All told, 80 percent of dealers questioned think that the current F&I process has room for improvement as 87 percent of dealers agreed that negotiation and the F&I presentation are steps in the purchase process that customers dislike the most.
How would stores rectify their F&I challenges? A total of 63 percent respondents said they would dedicate the extra training resources to improving the quality of customer interactions.
“The results of this survey come as no surprise to eLEND, nor, I am guessing, to dealerships,” said Pete MacInnis chief executive officer of eLEND Solutions.
“There are multiple disconnects in the sales and financing process that are costing dealerships time, money and, importantly, customer satisfaction,” MacInnis continued. “The message is clear: the time has come for our industry to provide dealerships with the technologies and systems that will help them reduce the sales/finance process from hours to minutes.
“And with financing ranked as the first or second biggest profit center by the majority surveyed, it is a key place to start,” he went on to say.
One of Used Car Week’s presenters and the sponsor of the SubPrime Auto Finance Executive of the Year award — Black Book Lender Solutions — finalized the integration of its vehicle valuation data into three more providers of loan origination systems used by finance companies.
Recent integrations announced on Monday include Credex, Compass Technologies and FNI (Financial Network Inc.).
Executives highlighted this continued expansion of Black Book data throughout industry loan origination systems is designed to allow lending decisions to be made in less time and with lower costs, thus accelerating the approval process.
The company insisted these operational efficiencies, combined with the risk management benefits of Black Book Lender Solutions insight, is meant to help finance companies remain competitive and focused on profitable growth opportunities.
Many of today’s leading finance companies are leveraging vehicle values from Black Book Lender Solutions, with data that is fully integrated into loan origination systems powered by some of the most notable providers, including defi SOLUTIONS, Fidelity, Crif Lending Solutions, Argo Data Resources Corp, Meridian Link, Allied Business Solutions and Megasys.
“Black Book’s footprint continues to expand in this segment of the industry as loan origination system providers respond to customer demand to have access to our values,” said Jared Kalfus, vice president of data licensing for Black Book.
“Today’s most profitable companies leverage tools and resources that provide smarter and faster decision-making, along with operational efficiencies,” Kalfus continued.
Credex Systems president Lloyd Wright pointed out that efficiency and speed of approval can greatly impact his customers’ ability to compete and realize larger profit potential.
“With Black Book vehicle value data fully integrated into the loan origination system, lenders can reduce application errors and streamline the entire approval process for clients entering their portfolio,” Wright said.
Stephanie Alsbrooks, chief executive officer of defi SOLUTIONS, indicated her clients “love the speed and accuracy advantage they get with ease of access to Black Book industry leading data.
“Coupled with our defi Solutions configurable rules, Black Book data allow customers to automatically call the value data at any point in their process from application to funding,” Alsbrooks continued.
Jeremy Engbrecht, president of the CRIF Select division, CRIF Lending Solutions, declared that Black Book is one of the most accurate vehicle evaluation tools on the market.
“Streamlining the lending process is paramount for lenders to capture more business in today’s evolving market,” Engbrecht said. “Time is money, especially in the auto industry, which is why we are proud to integrate our CRIF ACTion loan origination technology platforms for direct and indirect auto lending with Black Book.”
Besides presenting the winner of the SubPrime Auto Finance Executive of the Year winner, Black Book will have a major presence at the SubPrime Forum, which is set for Nov. 10 through 12 at the Red Rock Casino, Resort and Spa in Las Vegas.
Kalfus will be joined by colleague Susan Hughes for a session titled, “2014: A Year of Records.” This general session presentation will be devoted to examining the many record-breaking events that took place during 2014 and discussing how those events and trends will continue to impact the industry in 2015 and beyond.
This session will take place Nov. 11 at 11 a.m. during the SubPrime Forum, which is presented in partnership with the National Auto Finance Association. The forum begins Nov. 10 with registration and a welcome reception before launching into a full day of events on Nov. 11, followed by a half-day of sessions on Nov. 12.
For a full schedule of events, visit http://subprime.autoremarketing.com/agenda, and be sure to register for the event by Oct. 10 to save $200 off of your registration fee. And once you’re registered, don’t forget to make your hotel reservations at the Red Rock Casino, Resort and Spa in Las Vegas. The exclusive conference rate of $195/night is available only through Oct. 17.
NextGear Capital appointed a former Wells Fargo executive to be its new division vice president for the company’s East region.
Taking on this role is Todd Gunderson, who will be responsible for the oversight of the company's business development and growth throughout the Eastern region of the United States.
“At NextGear Capital, we are about building relationships with each of our customers and it is imperative that we position the right people to help us grow these relational opportunities,” NextGear Capital chief operating officer Shane O’Dell said.
“Gunderson’s diverse background in the automotive industry is precisely what we need to best serve our customers in the Eastern region,” O’Dell continued.
Gunderson previously spent 16 years with Wells Fargo’s auto finance division, where he moved up in the ranks to the role of senior vice president of credit operations for the U.S. and Canada.
Gundersons also served as president of company store operations with J.D. Byrider and chief lending officer for Michigan Schools and Government Credit Union.
“The automotive industry is an ever-changing landscape with constant new challenges and opportunities,” Gunderson said.
“As an established leader in the auto financing industry, NextGear Capital has an impressive business model and I’m excited to see what opportunities I'll get to tackle in this role,” he went on to say.
CNW Research contends subprime approvals are moving higher this month at a pace possibly even better than what the exact figures indicate.
According to the firm’s latest Retail Automotive Summary, subprime approvals so far this month are registering 17.7 percent higher than September of last year. On a month-over-month basis, the increase is about a third of a percentage point; CNW pinpoints it at 0.34 percent.
“While the latter figure doesn’t seem like much, it reveals a strong but measured approach to providing loans to these folks,” CNW president Art Spinella said.
And perhaps more validity to Spinella’s assertion arrived via assessments made by Cristian deRitis, senior director at Moody's Analytics. deRitis joined Used Car Week speakers Lou Loquasto and Jennifer Reid for a webinar orchestrated earlier this week for the Consumer Bankers Association.
“As we’re thinking about these credit-challenged borrowers, consumers with credit scores below 660, the profile of these borrowers might be somewhat different than what we had prior to the recession or housing boom,” deRitis said.
“Today, we have borrowers with low scores as the result of mortgage foreclosure or the result of the housing collapse. Therefore, these are borrowers who are otherwise good credit but because of that mortgage foreclosure they have a very low credit score,” he continued.
“From a lender’s perspective, they still may be good borrowers to lend to, borrowers who will pay regularly on time,” deRitis went on to say.
Having a healthy stream of subprime borrowers likely will aid CBA member institutions to meet their objectives they shared during the webinar. A total of 68 percent of bank leaders who joined Moody’s and Equifax for the session said they expect overall auto loan and lease originations to continue to rise slowly during the next year.
That sentiment coincides with what the majority of webinar participants said was the biggest challenge going into next year. While 37 percent pointed to maintaining or increasing margins, 44 percent cited the goal of keeping growth at current rates.
Loquasto closed the webinar with a parting thought not only for commercial banks, but also any finance company that has its hand in vehicle lending.
“We consider the first approach to continuing these growth rates that we’ve had for the last few years — without having to buy deeper or give up yield — is to use the available data to better understand at a micro-level your market and different credit segments,” said Loquasto, who is part of the stable of experts who will be on hand for the SubPrime Forum, which runs during Used Car Week at the Red Rock Casino, Resort and Spa in Las Vegas.
The SubPrime Forum, an event orchestrated in partnership with the National Automotive Finance Association, is set for Nov. 10 through 12. More details and the conference agenda are available at subprime.autoremarketing.com.
Exeter Finance Corp. and Ally Financial each announced financial moves recently; one to increase borrowing capacity and the other to start a cash tender offer.
Late last week, Exeter said that Exeter Funding II — a special purpose Delaware limited liability company and wholly owned subsidiary of the company — completed the renewal and extension of its warehouse funding facility. In conjunction with the renewal, the company increased available capacity to $1.65 billion, an increase from its previous facility of $575 million or 54 percent.
Exeter president and chief executive officer Mark Floyd noted the new facility has a three-year term with a final maturity date of September 2017.
“We are very pleased with the outcome of the renewal of our warehouse funding facility, and greatly appreciate the ongoing support of our commercial banking partners,” Floyd said
“This facility provides the company with added flexibility to continue to pursue strategic growth initiatives on an opportunistic basis,” he continued. “Additionally, the increase in capacity and the three-year tenor provided by this facility not only greatly enhance our liquidity position, but also reduce the potential business risk that could result from short-term disruptions in the asset backed securitization market.”
Exeter mentioned Citi acted as structuring agent and administrative agent on the transaction. In addition to Citi, the company indicated Wells Fargo, Goldman Sachs, Deutsche Bank and Barclays are lenders in the facility.
Ally Financial Announces Cash Tender Offer
In other industry news, Ally announced on Wednesday that it has commenced cash tender offers to purchase up to $700.0 million aggregate principal amount of its following notes:
— 8.000 percent Senior Notes due 2031
— 8.000 percent Senior Guaranteed Notes due 2020
— 7.500 percent Senior Guaranteed Notes due 2020
Ally indicated the terms and conditions of the tender offers are described in an offer to purchase, dated Sept. 24 and a related letter of transmittal.
“Ally reserves the right, but is under no obligation, to increase the aggregate maximum tender amount or the maximum tender amount with respect to any series of notes without extending withdrawal rights except as required by law,” officials said. “The amounts of each series of notes to be purchased may be prorated as set forth in the statement.”
| |
|
|
Dollars per
$1,000 Principal |
Amount
of
Notes |
|
|
| Title of Notes |
CUSIP
Number |
Aggregate
Principal
Amount
Outstanding |
Tender
Offer
(1) |
Early
Tender
Premium
(1) |
Total
(1)(2) |
Maximum
Tender Amount |
| 8.000% Senior Notes due 2031 |
370425RZ5 |
$932.540M |
$1,260.00 |
$30.00 |
$1,290.00 |
$150M |
| 8.000% Senior Guaranteed Notes due 2020 |
02005NAE0
36186RAA8
U36195AA0 |
$1,9B |
$1,177.50 |
$30.00 |
$1,207.50 |
$275M |
| 7.500% Senior Guaranteed Notes due 2020 |
02005NAJ9 |
$1.75B |
$1,162.50 |
$30.00 |
$1,192.50 |
$275M |
(1) Per $1,000 principal amount of Notes tendered and accepted for purchase.
(2) Includes the Early Tender Premium.
Ally pointed out the tender offers will each expire at 11:59 p.m. EST on Oct. 22, unless extended or earlier terminated by the company.
Subject to the terms and conditions of the tender offers, Ally explained the consideration for each $1,000 principal amount of notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the tender offers will be the tender offer consideration for such series of notes set forth in the table above with respect to each series of notes and the tender offer consideration.
Officials said holders of notes that are validly tendered (and not validly withdrawn) at or prior to 5 p.m. EST on Oct. 7 (such date and time, as it may be extended) and accepted for purchase pursuant to the tender offers will receive the applicable tender offer consideration for such series, plus the applicable early tender premium for such series of notes set forth in the table above.
“Holders of notes tendering their notes after the early tender date will not be eligible to receive the early tender premium,” Ally said.
The company added all notes validly tendered and accepted for purchase pursuant to the tender offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such notes from the last interest payment date with respect to those notes to, but not including, the applicable settlement date (as such term is defined in the statement).
“The consummation of the tender offers is not conditioned upon any minimum amount of notes being tendered,” Ally said. “However, the tender offers are subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the statement, including, among others, Ally having raised net proceeds through one or more issuances of debt in the public or private capital markets, on terms reasonably satisfactory to the company, sufficient to purchase all notes validly tendered (and not validly withdrawn) and accepted for purchase by the company and to pay all fees and expenses in connection with the tender offers.”
Citigroup and Deutsche Bank Securities are the dealer managers in the tender offers. Global Bondholder Services Corp. has been retained to serve as both the depositary and the information agent for the tender offers.
Persons with questions regarding the tender offers should contact Citigroup at (800) 558-3745 or (212) 723-6106 or Deutsche Bank Securities at (866) 627-0391 or (212) 250-2955. Requests for copies of the statement, related letter of transmittal and other related materials should be directed to Global Bondholder Services at (866) 924-2200 or (212) 430-3774.
“None of Ally, its board of directors, the dealer managers, the depositary, the information agent or the trustee with respect to the notes or any of Ally's or their respective affiliates, makes any recommendation as to whether holders of the notes should tender any notes in response to the tender offers,” officials said. “The tender offers are made only by the statement and the accompanying letter of transmittal.
“The tender offers are not being made to holders of notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction,” they continued.
“In any jurisdiction in which the tender offers are required to be made by a licensed broker or dealer, the tender offers will be deemed to be made on behalf of Ally by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction,” the company went on to say.
Digital marketing, sales and service solution provider ChannelNet added another captive finance company to its list of clients as the company recently signed a new contract to provide Web-based customer lifecycle communications for Toyota Financial Services (TFS).
The company’s software, ChannelNet SiteBuilder, uses a needs-based marketing approach that can give the captive the ability to target and personalize each interaction as the customer progresses through the ownership lifecycle.
“We are honored to work with Toyota Financial Services,” ChannelNet chief executive officer and founder Paula Tompkins said. “Our goal is to support TFS with dynamic, personal web experiences that increase customer satisfaction and drive loyalty. It’s all about sending customers relevant information at the right time.”
Tompkins explained that ChannelNet’s technology can provide a comprehensive customer lifecycle solution starting with the welcome, continuing through contract termination and ultimately another purchase. The self-service solution can also increase the cross-selling opportunities for the brands and their dealers.
Based on industry standards, the software can create a transparent flow of data from segregated or silo systems, giving the customer access to the dealer, brand and finance information all in one place.
Other ChannelNet automotive customers include Ally Auto, Audi Financial Services, BMW Financial Services, Fiserv, Hyundai Motor Finance, Kia Motor Finance, RouteOne, Volkswagen Credit and Southeast Toyota.
TFS provides retail and wholesale financing, retail leasing, vehicle protection plans, and other financial services to more than 1,300 authorized Toyota, Lexus and Scion dealers in the U.S.
