GMAC lowers FICO Score to 621
 

In an immediate response to the Treasury Department's injection of $6 Billion GMAC advised their dealers that they will now accept credit applications from customers with FICO scores above 620. Previously GMAC had limited credit to customers with FICO scores in excess of 700.

In another effort to boost sales, GM announced that they were offering 0% financing for 60 months on select vehicles.

Here's a link to the news report: http://online.wsj.com/article/SB123064252570542267.html

It's nice to actually have some good news to report. :)

I sure wish cfc would follow suit...

It will be interesting to see what happens with CFC.

Now that GMAC has obtained their Bank Holding Company status Cerberus is going to be forced to reduce their ownership position. If Cerberus still has dreams of making money in the automotive finance arena they may want to shift their efforts toward CFC.

I noticed that there's a story on CFC in Automotive News that I haven't had a chance to read yet - perhaps that will provide some insight.

(Can't find the thread on GM - Chrysler merger? ... or am I mis-remembering this thread :D )

I think the good side (for Chrysler dealers) to this "reduced position" is that a Chrysler for GMAC swap is now dead! Seems Cerberus can't strong arm GM through GMAC at this point.

It will be interesting to see what happens. I agree that the GM/Chrysler merger seems less likely now that Cerberus will not be able to swap their interest in Chrysler for GMAC.

That said, I still think Cerberus wants to dump Chrysler's automotive operations and just keep their interest in Chrysler Financial. It might be like their Mervins deal where they split the company in two pieces and then walked away from the piece that went bankrupt.

I am noticing that Chase Prime and Wachovia has rates for the best customers with equity in the mid 4's and Chase Prime is back to granting credit to customers in the low 600's credit score. Some postive approvals form them and also Capital One.

Thanks for the post - that's great news. :)

As bad as the $4.50/gallon gas spike was I think we'd all agree that the credit crisis has done far more damage. There's nothing more demoralizing then to sell a car to a happy customer and watch the deal unwind because you can't get it funded.

I've read some other stories on the Internet that are suggesting that credit is starting to loosen up and sales are slowly recovering from the October/November lows.

It will be interesting to see what the sales reports are for December when they are released later today.

Does GMAC currently finance customers at 72 months???

In beating the bushes today over CF mystery 1.5B loan, a DM thought that 72mon. contracts would not be available ... "just like GMAC"??? Not sure where he got this but he believes under the agreement with Gov., GMAC is not to write 72mon contracts.

:confused:

The GMAC rate sheet I have from 1/1/09 is just up to 60 months and their Platinum rate is 7.49% and that is at least 2 pts lower than cfc...

Maybe he's right then... no 72mons.!

Scooter - Am I reading this correctly... GMAC's best tier is a 7.49% retention???

Yes, isn't that great....

I'm suddenly not so excited about this 1.5B. If GMAC got $6B and their lowest rate is 7.49... well, lets just say I'm no longer holding my breath for retail help via CF. :(

Outside of the incentivized rates, it sounded like there was only going to be a 100 - 200 basis point decline from their current program.

Maybe most of the money will be directed toward the incentivized programs?

New CFC rate sheet looks real encouraging after all. SEBC 5.49% X 60 Months 740 + FICO. Pre-owned rates are VERY competitive as well...The biggest issue I see is that They only want A+ and A Paper. A- 740 FICO is 11.29 % x 60 Months. :eek:

I'll take it right now! Any step in the right direction is a plus. I've got a couple deals to send them ... won't take long to figure out how their buy'n.