GMAC Financial has announced that it will resume auto financing for a broader spectrum of US customers as a result of expanded access to funding as a bank holding company.
The company said that it will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, a significant expansion of credit compared to the 700 minimum score put in place two months ago.
At this time, GMAC will not finance higher risk transactions characterised by a credit bureau score of 620 or below. The company will utilise both GMAC Bank and funding from other sources to resume its traditional spectrum of prime-based credit, appropriately pricing for risk and requiring down payments where necessary.
GMAC’s expanded financing policy and improved retail financing rates will apply to both new and certified used vehicles. Dealer wholesale financing remains a priority for GMAC, according to the company.
Bill Muir, president of GMAC, said: The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers. We will continue to employ responsible credit standards but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the US.
