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Feb 20, 2009 9:09 pm US/Central
Local Company Can't Get Loan For 1,000 GM Vans
DALLAS (CBS 11 / TXA 21) ―
If there is anyone that should want to sell 1,000 vans right now, it is General Motors. Well, the local owner of Capps Van and Truck Rental said that he is ready to spend $20 million on 1,000 GM vans. But his lender, GMAC, will not give him the cash to do so. Now, he is taking matters into his own hands by taking out an advertisement on a billboard. It's big. It's bold. It's brief. And now the owner wants more than money. He wants answers as to why GMAC won't let him stay in business.
At Capps Van and Truck Rental, owner Dave Capps rents a sturdy fleet of GM passenger vans to all kinds of groups. "We have a lot of organizations, churches and schools," he said.
But that fleet wears out with time and mileage. "As nice as we clean them, you can't clean an old van like you can a new one," Capps said.
As Capps lookedto replenish the old vans with new ones, he hit a major roadblock. His long-time lender of 20 years, GMAC, has essentially shut the door on his ability to get a loan for new vans.
"Tarp money is tarp money, whoever needs it is where it needs to go," Capps said. "They can't hang onto it. It needs to go."
Frustrated and angered that a company running on bailout money cannot extend him a necessary loan, Capps came up with an idea. "I thought the American people need to know this," he said.
Capps is now advertising for a lender, and getting a lot of attention and support from his customers.
"I know what [GMAC is] doing with the money," said customer Harold Jones. "They're not spending it adequately, that's why we're in the situation we're in."
The billboard is a literal sign of the times, along what could be a long road ahead, for the troubled automaker.
"Come on! This is dumb! I want to buy vehicles. They want to sell vehicles," Capps said. "Let's go! GM dealers probably, in the DFW area, won't sell 1,000 cars in the next few months. I want to buy 1,000 vehicles right now!"
A spokeswoman for GMAC said that she could not comment on Capps' specific case, but said that the company continues to provide financing for his current inventory. However, Capps claims that GMAC said they are no longer interested in financing fleets.
Meanwhile, Capps told CBS 11 News that he has already received three phone calls from prospective lenders.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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