NEW YORK (AP) -- A bankruptcy judge says GMAC can become Chrysler's preferred lender.
Pending the completion of certain documentation, U.S. Judge Arthur Gonzales on Tuesday approved the deal between Auburn Hills, Michigan-based Chrysler LLC and GMAC Financial Services.
Under the agreement, GMAC will be allowed to provide showroom financing to Chrysler dealers and have the right to exclusively offer certain discounted financing rates to Chrysler customers.
GMAC currently provides financing for General Motors Corp. dealers and customers in addition to home mortgage loans.
Chrysler Financial, a separate company from Chrysler LLC, previously was the automaker's preferred lender. But the financing company said two weeks ago that it would no longer be able to make new loans to Chrysler dealers.