GM On The Hook for $1b+ in GMAC Lease Losses
From GM's 10k filing… "Under the residual support program, the customers’ contractual residual value is adjusted above GMAC’s standard residual values. We reimburse GMAC to the extent that sales proceeds are less than the customers’ contractual residual value, limited to GMAC’s standard residual value. As it relates to U.S. lease originations and U.S. balloon retail contract originations occurring after April 30, 2006 that GMAC retained after the consummation of the GMAC sale, we agreed to begin payment of the present value of the expected residual support owed to GMAC at the time of contract origination as opposed to after contract termination when the related used vehicle is sold. The residual support amount owed to GMAC is adjusted as the contracts terminate and, in cases where the estimate is adjusted, we may be obligated to pay each other the difference. As of December 31, 2007 and 2006, the maximum additional amount that could be paid by us under the U.S. residual support program was $1.1 billion and $276 million, respectively… We will also pay GMAC a quarterly leasing payment in connection with the agreement beginning in the first quarter of 2009 and ending in the fourth quarter of 2014. At December 31, 2007 and 2006, the maximum amount guaranteed under the U.S. risk sharing arrangement was $1.1 billion and $339 million, respectively. The maximum amount would only be paid in the unlikely event that the proceeds from all outstanding lease vehicles would be lower than GMAC’s standard residual rates, subject to the limitation. As of December 31, 2007 and 2006, we had a total reserve recorded on our consolidated balance sheet of $144 million and $50 million, respectively, based on our estimated future payments to GMAC associated with the maximum amount guaranteed under the U.S. risk sharing arrangement."
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- Theflyersfan If you ever want a review on a 2022 Mazda MX-5 GT RF, I'll be more than happy to type up a few thousand words and add in some great pictures in front of Churchill Downs for y'all!In a nutshell, I agree with this review. I didn't have a chance to try the Recaro seats because the only test drive available was with another GT that someone backed out in buying so it was being used as a demo. But from what I was told, if you're larger than a 38 waist or taller than 5'10", it gets tight. But with the standard seats, and I'm 5'10" and maybe 20 pounds from the 38 waist, I fit fine. Now getting in and out with the roof up after shoulder surgery (especially leaving the surgery center with most of the right arm under a nerve block) is the total opposite of graceful!!! The look on the nurse's face when the MX-5 pulled up and I'm partially wrapped up like a mummy was priceless.I've had mine since the middle of April and have already put 6,700 miles on it, including round trips from Louisville to Chicago and the Philadelphia suburbs. Averaged 38-39 mpg at a steady 75 mph, and it wasn't a torture chamber. The metal top helped a lot. The standard seats are a bit thin on padding, and there was a bit of squirming by around hour 8 on the Philly drive, but it's possible. But even though this design was released in 2015, I still get compliments from total strangers at stoplights, carwashes, gas stations, restaurants, etc. The Soul Red Metallic paint just makes the car pop. I wish it was available with the Terra Cotta leather (the gray above is available with it), and that it didn't have the standard all in black, because it gets thermonuclear in there with the top down and the sun beating on you, but a minor quibble. But it's just fun. Pure driving fun. The best stick shift in any car today. Solid brakes, excellent handling, a sane amount of power to where you aren't going to get into anything reckless and stupid. After a 12+ hour day at work, there's nothing better than dropping the top and driving the 20 minutes home with the better than I thought it would be Bose stereo playing Moby into my ears through the headrest speakers. Mazda has already announced there will be an NE model so I can't wait for that. It'll be interesting how they will keep the weight down with the expected changes to eke more MPG out of what is already an efficient car.
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