Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Rick Nelson of Stephen's.
Rick Nelson – Stephens, Inc.
Thank you and good afternoon, guys.
Sid DeBoer
Hi Rick.
Jeff DeBoer
Hello, Rick.
Rick Nelson – Stephens, Inc.
I want to ask about the dispositions, how you – are you getting blue skies for those and are the credit market's a challenge at all in getting people financed for those acquisitions?
Bryan DeBoer
Rick, we are getting blue sky for a good portion of the divestitures. In terms of our buyers having good credit opportunities, so far we haven't experienced a pitfall where we weren't able to close. We've had Brad I believe, 13 transactions that have been contracted, and we've had none fall out yet.
Brad Gray
Over financing done.
Bryan DeBoer
Okay, over financing. We haven't even had a contract fall out yet.
Brad Gray
Not yet.
Rick Nelson – Stephens, Inc.
Okay and we hear about Chrysler, their plans with floor plans faking higher spreads – what are you seeing there and – other alternatives?
Sid DeBoer
That was factored into that interest rate adjustment. We figure another 50 basis points on average. Chrysler, I think, was a little more than that, Rick, but nothing that's upsetting the apple cart. With LIBOR continuing to fall again, it should get back inline. I saw LIBOR, the one-month rate was at 3.17% today and we anticipate that getting down around 2.5% and it is based on LIBOR. So, thankfully, what the Fed has done is beginning to show and banks loaning to each other again.
Rick Nelson – Stephens, Inc.
On the captives, Sid, are any of the others following Chrysler's lead in –
Sid DeBoer
Yes. They're all up slightly higher, Rick. We do have a pretty good national contract with each of them and I don't think we've had to pay quite the increases some of the under-financed dealers may.
Rick Nelson – Stephens, Inc.
Gotcha. Would you care to speculate on the GM-Chrysler combination and how, if it does occur, how that would impact Lithia?
Sid DeBoer
Well, we know the Jeep and the Dodge brand have great value and when you look at General Motors' ability to manage that whole group; we would anticipate there would be some dealer fall-off in time, but now suddenly and we have plenty of time to react and move things around.
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