GMAC Eases Auto Lending Restrictions
The elimination or suspension of certain fees placed on dealers will give dealers a break, but the implications go further for consumers. For the first time since the seizure of the credit markets in October 2008, potential car buyers with credit scores less than 620 will be eligible for lending from GMAC. The company also said it will cut certain rates for both new and used vehicles, but did not indicate by how much.
GM expects the move to increase the number of potential car buyers by 30%-35% for GM dealers who finance through GMAC — that’s about 70% of all GM dealers. The company said dealers would still use discretion in deciding to whom they will give loans, taking into account factors like job status and applicants’ financial records.
