Editor’s Note: RV industry dealers on Tuesday (Aug 14) received an unexpected — and surprising — message from Kevin Wrate, a senior regional vice president for Ally Financial Inc., a key retail and commercial lender, announcing the company’s pending departure from the retail and floorplan recreational vehicle business. Efforts to reach Ally spokesmen on deadline were unsuccessful. Here, retailers confirmed, is a copy of the letter that dealers received:
August 14, 2018
Attention all Ally RV Dealers:
After careful and extensive review, Ally has made the strategic decision to exit the RV Consumer and Commercial (floorplan) business. Over the last year, we have been challenged to achieve acceptable financial returns for this business segment and are thus redirecting resources to focus on our core auto finance business activities.
• Retail operations will discontinue August 17, 2018, which includes consumer application support decisioning; RV consumer applications will not be accepted after this date.
• All pending RV retail contracts must be dated no later than August 31, 2018, with contract packages received by Ally no later than September 7, 2018 to be eligible for purchase.
• Your local account executive will provide additional specific supporting information as it relates to any retail reserve issues and questions regarding your current RV retail portfolio with Ally.
• Commercial/floorplan operations will continue on a liquidating basis for the remainder of this year. We will work closely with every floorplan dealer to help facilitate a smooth and orderly transition to their new financing source over the course of the next few months.
- We ask all floorplan dealers to seek alternate inventory financing as soon as possible.
- In the interim, there will be no additional credit facilities added for new points or approved existing floorplan accounts.
- Future bulk/seasonal inventory ordering and flooring should not be contemplated until an alternate floorplan financing source has been secured.
- All operational activity with the Costa Mesa office will remain unchanged and in place until such time that all accounts have migrated and liquidated accordingly.
We would like to sincerely thank everyone for the support and business provided by the entire national dealer body. We appreciate the close relationships built over this time and wish all of you a prosperous successful future.
Senior Regional Vice President