Go Back   DealershipForum.com > Domestic Franchises and Independent Dealers > General Motors > Sales

Notices

Reply
 
Thread Tools Display Modes
Old 12-30-2008, 10:30 PM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default 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.
XDCX is offline   Reply With Quote
Old 12-31-2008, 09:38 AM   #2
ssdd
Senior Member
 
Join Date: Feb 2008
Posts: 1,045
Default

I sure wish cfc would follow suit...
ssdd is offline   Reply With Quote
Old 12-31-2008, 11:02 AM   #3
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default

Quote:
Originally Posted by ssdd View Post
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.
XDCX is offline   Reply With Quote
Old 12-31-2008, 12:02 PM   #4
CL Pgh
Senior Member
 
Join Date: Oct 2008
Posts: 1,242
Default

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

Quote:
Originally Posted by XDCX View Post
Now that GMAC has obtained their Bank Holding Company status Cerberus is going to be forced to reduce their ownership position.
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.
CL Pgh is offline   Reply With Quote
Old 01-02-2009, 10:09 AM   #5
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default

Quote:
Originally Posted by CL Pgh View Post
(Can't find the thread on GM - Chrysler merger? ... or am I mis-remembering this thread )



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.
XDCX is offline   Reply With Quote
Old 01-02-2009, 02:51 PM   #6
dealer3100
Senior Member
 
Join Date: Jan 2008
Posts: 118
Default

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.
dealer3100 is offline   Reply With Quote
Old 01-05-2009, 09:45 AM   #7
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default

Quote:
Originally Posted by dealer3100 View Post
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.
XDCX is offline   Reply With Quote
Old 01-16-2009, 10:37 AM   #8
CL Pgh
Senior Member
 
Join Date: Oct 2008
Posts: 1,242
Default

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.

CL Pgh is offline   Reply With Quote
Old 01-16-2009, 10:44 AM   #9
scooter
Senior Member
 
Join Date: Mar 2008
Posts: 173
Default

Quote:
Originally Posted by CL Pgh View Post
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.

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...
scooter is offline   Reply With Quote
Old 01-16-2009, 11:18 AM   #10
CL Pgh
Senior Member
 
Join Date: Oct 2008
Posts: 1,242
Default

Quote:
Originally Posted by scooter View Post
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???
CL Pgh is offline   Reply With Quote
Old 01-16-2009, 11:37 AM   #11
scooter
Senior Member
 
Join Date: Mar 2008
Posts: 173
Default

Quote:
Originally Posted by CL Pgh View Post
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....
scooter is offline   Reply With Quote
Old 01-16-2009, 11:52 AM   #12
CL Pgh
Senior Member
 
Join Date: Oct 2008
Posts: 1,242
Default

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.
CL Pgh is offline   Reply With Quote
Old 01-16-2009, 01:48 PM   #13
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,856
Default

Quote:
Originally Posted by CL Pgh View Post
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?
XDCX is offline   Reply With Quote
Old 01-17-2009, 06:42 AM   #14
goodone414
Senior Member
 
Join Date: Mar 2008
Posts: 174
Default

Quote:
Originally Posted by XDCX View Post
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.
goodone414 is offline   Reply With Quote
Old 01-17-2009, 07:01 AM   #15
CL Pgh
Senior Member
 
Join Date: Oct 2008
Posts: 1,242
Default

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.
CL Pgh is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
What was your Dealership's score for Dealer Standards? XDCX Sales 18 06-17-2010 09:13 AM
Changes to FICO will impact credit scores XDCX Automotive Discussions 1 09-04-2009 11:40 AM
130% CFC Advance for high FICO customers XDCX Finance 4 02-27-2009 09:36 AM
Customer Promoter Score CPS CL Pgh Sales 10 01-22-2009 10:43 AM
GMAC - 700+ FICO Score Required XDCX Sales 10 10-17-2008 08:12 AM


All times are GMT -7. The time now is 11:16 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016