General Motors Acceptance Corp. (GMAC), the financial services subsidiary of General Motors Corp., and Bank of America have agreed the purchase by Bank of America of up to $US55 billion worth of GMAC retail automotive contracts over a five-year period, commencing July 2005 and concluding June 2010.
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Bank of America will make an initial purchase of $5 billion. In each of the agreement’s five fiscal years (July 1-June 30), Bank of America will purchase up to $10 billion of GMAC’s full spectrum of active US retail auto finance contracts. GMAC will continue to service the auto finance contracts.
The agreement expands the existing relationship between GMAC and Bank of America. GMAC will be able to accelerate its planned transition from an “originate and store” to an “originate and sell” US auto finance business model, while Bank of America makes a significant investment to grow its automotive finance business.
