GM's Financial Arm GMAC Tightens New Car Loans - ModernCamaro.com - 5th Generation Camaro Enthusiasts
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post #1 of 10 Old 10-14-2008, 12:09 PM Thread Starter
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Thumbs up GM's Financial Arm GMAC Tightens New Car Loans

Adding to the gloomy economic atmosphere, GMAC, General Motors' consumer financial arm announced on Monday that is implementing a tighter policy for auto loans. The changes include limiting purchases to vehicle buyers with a credit score of 700 or above while the company will also restrict contracts with higher advance rates and longer terms. GMAC officials attributed the more conservative purchase policy for consumer auto loans to the lack of stability in the global capital and credit markets.


"These changes in pricing and underwriting are related to the current market environment, which has reduced access to funds and increased the cost of funds. The company currently expects these actions to remain in place until the credit markets stabilize and accessibility improves," said GMAC in an official statement.


Notably, last week GMAC also raised by 0.75 percentage points the rate it charges dealers for providing loans to consumers for vehicles that aren't part of any special incentive programs.

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post #2 of 10 Old 10-14-2008, 12:14 PM
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Originally Posted by FranknBeans View Post
Adding to the gloomy economic atmosphere, GMAC, General Motors' consumer financial arm announced on Monday that is implementing a tighter policy for auto loans. The changes include limiting purchases to vehicle buyers with a credit score of 700 or above while the company will also restrict contracts with higher advance rates and longer terms. GMAC officials attributed the more conservative purchase policy for consumer auto loans to the lack of stability in the global capital and credit markets.


"These changes in pricing and underwriting are related to the current market environment, which has reduced access to funds and increased the cost of funds. The company currently expects these actions to remain in place until the credit markets stabilize and accessibility improves," said GMAC in an official statement.


Notably, last week GMAC also raised by 0.75 percentage points the rate it charges dealers for providing loans to consumers for vehicles that aren't part of any special incentive programs.

sucks...my fingers are crossed that things get better before next spring...and in the meantime, I'll be saving like a madman.

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post #3 of 10 Old 10-14-2008, 12:37 PM
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More hoops to jump through/harder to get a loan less sales.
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post #4 of 10 Old 10-14-2008, 01:20 PM
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This is Good news!

Now less people will be living beyond their means when it comes to new car buying. Too many people out there making $35K a year driving new Escalades...

Better overall for the economy

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post #5 of 10 Old 10-14-2008, 04:40 PM
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Not if your an Escalade sales person.
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post #6 of 10 Old 10-14-2008, 05:16 PM
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I won't have he cash to put down unitl next December - it's better this way becaue I think I'm gonna wait for the new colors & HUD on the 2010 models.

Only getting a 2LT/RS but Next December I'll be able to put down about 10k + a trade in worth about 6500. This will make car payments really easy.....
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post #7 of 10 Old 10-15-2008, 07:08 AM
 
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Has anyone recently financed through GMAC? What were rates/terms like? The lowest bank loan I've seen is 5.44%/36 months through Capital One.

Looking at the incentives page on GM's website, it looks like on similar models they are offering 6.9%.
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post #8 of 10 Old 10-15-2008, 07:39 AM
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Quote:
Originally Posted by OverAnxious View Post
This is Good news!

Now less people will be living beyond their means when it comes to new car buying. Too many people out there making $35K a year driving new Escalades...

Better overall for the economy
I make $10K a year

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post #9 of 10 Old 10-15-2008, 07:46 AM
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Originally Posted by brandonppr View Post
I make $10K a year

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post #10 of 10 Old 10-15-2008, 07:47 AM
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Not if your an Escalade sales person.

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