GMAC, which recently became a bank holding company, will now replace Chrysler Financial to underwrite vehicle inventories and retail loans for Chrysler LLC. Qualified for bailout money under the (TARP) Troubled Asset Relief Program by becoming a bank holding company, GMAC is in a position to make loans to allow Chrysler to move inventory.

Expecting to "fill the gap" by the middle of May, Bill Muir, head of GMAC, asserted that the lender will transition smoothly into servicing the remaining Chrysler LLC dealerships, estimated to be around 3,200. The logistics of the transition will be based on Chrysler configuring its own proprietary finance arm associated with GMAC.

To expedite the change of lenders, GMAC will offer retail loans first, and then develop a plan for wholesale underwriting. As a bank holding company, GMAC was able to further diversify and offer loans to other non-GM car dealers, adding to its bank's deposits and making more funds available for financing.

GMAC is even exploring the option to diversify its financing by initiating a dealership mortgage program for all car makers. Chrysler Financial on the other hand, is experiencing challenges, due to the fact that the filing of bankruptcy by Chrysler LLC increases the risk perceived by its lenders.