Ally Financial told RV PRO Tuesday that it has “made the strategic decision to wind down its RV-financing business.” Ally has stated that it will no longer be accepting new consumer RV financing applications after Friday, Aug. 17, but will continue to service the retailer consumer contracts still out there. RV dealerships will also still be able to make orders for new inventory as long as it’s consistent with its normal rate of sales, the company said.
The transition was spurred by the company’s decision to concentrate its focus on its core auto finance operations.
“This decision had nothing to do with any projection for the RV market,” Kevin Wrate, senior regional VP for Ally Auto, told RV PRO. “We see a lot of opportunity in our core auto finance business. Market conditions are good – consumers are healthy. Originations are up year over year. Yields are increasing. Given our environment and outlook, this is the best move for our business.”
This doesn’t mean RV dealers will suddenly be left in the dark. The transition will happen over time and any dealers with questions should consult their account executives, according to Wrate.
“We are working with each dealer to ensure they have adequate time to find a floorplan provider,” he said. “Our goal is to transition dealers to new finance providers as smoothly as possible, so they can maintain continuity of their businesses.”
Wrate did not specify how long Ally had entertained the decision but mentioned that it was given “serious consideration.”
Ally Financial is still on course to be a Silver Partner for the RV Dealers Convention/Expo in Las Vegas this November. The company began offering wholesale financing for RV dealership inventories back in late 2010.
Below, Ally has provided RV PRO with the statement that was sent out to its dealers:
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