DETROIT — Ally Financial is launching Ally Balloon Advantage
in New York and California this week as part of its broad set of financing
options for dealers to turn both new and used models.

The company plans to make the product available in other
markets across the United States in the coming months.  

Management explained Ally Balloon Advantage is a retail
installment sale contract with reduced regular payments in exchange for one
larger balloon payment due at the end of the financing term. Consumers
selecting Ally Balloon Advantage can choose from financing terms of 48 or 60
months. 

Ally Balloon Advantage is available through General Motors,
Chrysler, Mitsubishi and Suzuki dealers for the purchase of new vehicles and
through all dealers that finance used vehicles with Ally.

Most used vehicles less than four model years old are
eligible for Ally Balloon Advantage. Similar to traditional retail financing, officials highlighted eligible
aftermarket products, such as a vehicle service contract, may be financed with an
Ally Balloon Advantage contract.

This new product joins Ally's array of vehicle financing and
leasing options available to consumers.

Earlier this year, Ally completed a nationwide rollout of
its innovative Ally Buyer's Choice product, which allows consumers to sell
their vehicle to Ally on a pre-determined date during their financing term, at
a pre-determined price.

"Ally Balloon Advantage is ideal for consumers who prefer to
own their vehicle and have reduced regular payments with a larger payment at
the end of the term," said Tim Russi, executive vice president, North American
Operations for Ally Financial.

"Although the end-of-term value of the vehicle can vary
based on market factors, our goal with Ally Balloon Advantage is for the
scheduled balloon payment to approximate the expected value of the vehicle at
that time," Russi continued.

Russi went on to mention the expected end-of-term vehicle
value assumes that the customer makes all payments when due, services the
vehicle as prescribed by the manufacturer and maintains reasonable wear and
mileage.

"We recognize the variety of needs for consumers when it
comes to purchasing or leasing a vehicle," he added.

"Ally wants to deliver a full complement of choices to help
dealers meet the needs of a wide range of customer lifestyles and budgets,"
Russi emphasized. "Dealers may choose to offer a limited trade-in guarantee
with Ally Balloon Advantage contracts to build customer loyalty, and
manufacturers may consider incentives for both new and certified pre-owned
vehicles with this product."

Consumers in the initial markets interested in finding out
if Ally Balloon Advantage is right for them can visit any participating
dealer. 

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