$6 Billion in Government Money, Auto Loans and GMAC

[Dec 31, 2008.]

 

GMAC’S receives $6 Billion in aid money from the government and you would think this would open the door to more auto loans to consumers. You might be right.

In October 2008 GMAC changed their policy on the demographic to which they will lend their money to by raising the minimum credit score for an auto loan borrower to 700 fico score.  This means that only those with the best credit will extended a loan leaving those with less than perfect credit scores to fend for themselves.

Since the influx of government money GMAC has announced they will lower their credit score minimum. GMAC spokesman Michael Stoller said now, those with less than perfect credit can qualify for a GMAC auto loan. GMAC will now lend money to car shoppers with FICO credit scores as low as 621, which is considered to be the low end that is usually called a sub-prime auto loan.

GM has also announced a new 0% financing auto loan incentive on some of its fleet of vehicles. The 0% offer applies to "qualified buyers," of course, and it's only available on Saabs and on the Chevrolet Trailblazer and GMC Envoy SUVs, some of their least popular cars.

Low interest rate loans are available on some popular models like the Cadillac CTS, Pontiac G6 and Chevrolet Malibu.  Once again only "qualified buyers" will be given these low interest rates.

Even with these relaxed credit guideline GMAC and GM have rolled out, those with lower credit scores should shop around to find the best deal possible.  There are many resources for those auto buyers with bad credit, it just requires more down payment and some additional leg work to find a good auto loan.

Article Source- CNN Money

 

About Author:

Brent Lane is a Mortgage Consultant in Roseville, California. He helps homeowners in California with their mortgage financing and writes on his BLOG at www.thelanegroup.blogspot.com