DETROIT, Mich. — Ally announced the strategic decision to exit the RV consumer and commercial (floorplan) business on Aug. 14, causing many in the industry to speculate about the health of the RV industry and express concerns about coming downturn.
Ally’s press release seemed to add fuel to those concerns as it stated, “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.”
Today, Kevin Wrate, senior regional vice president of Ally, reported these fears are unfounded.
A recap of the specifics of Ally’s announcement are as follows:
- Retail operations will discontinue August 17, 2018, which includes consumer application support and 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
- A 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. The press release notes that Ally 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.
Ally is asking that all floorplan dealers seek alternate inventory financing as soon as possible. In the interim:
- There will be no additional credit facilities added for new points or approved for existing flooring 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 RV dealer body. We appreciate the close relationships built over this time and wish all of you a prosperous and successful future,” Wrate added.
SOURCE: Ally press release and interview