GE decision impacts on car dealers 

GE Money's decision to stop offering car loans will mean a shake-up among car dealers.

The finance company, which is owned by global giant General Electric, has pulled out of car loans and home loans, as well as business lending, leaving 80 New Zealanders redundant.

It is also cutting back in Australia.

The cutbacks will not affect GE Money's retail store finance, credit cards, personal loans and insurance business.

Independent Motor Vehicle Dealers Association chief David Vinsen says GE was a major player in car hire purchase.

But he says the tough economic conditions have an upside. Vinsen says better quality dealers will have access to better quality finance, which is secured under the government's deposit guarantee scheme.

Vinsen says as smaller finance companies struggle for funding, dealers at the bottom end of the market will find it hard to offer finance to their customers but he says that's an area which has slowed down anyway.

Vinsen says the industry is moving towards quality over quantity.

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