Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

GMAC to Pull Back on Riskier Loans

October 14, 2008

Citing tough economic conditions, GMAC said on Oct. 13 itwould pull back from riskier and longer-term auto lending in response to tightcredit conditions that have limited its access to funds.

GMAC, the finance company affiliated with General MotorsCorp, said it would be more conservative in extending car loans, restrictingthem to
U.S. consumers with credit scores of 700 and above, and to shorter terms.

The company said it expects the restrictions to remain inplace until credit markets stabilize.

GMAC also said it has increased the rate it charges cardealers for providing standard auto financing by 75 basis points.

GMAC’s wholesale auto finance business is not affected bythe changes.

Detroit-based GMAC lost $2.48 billion in the April-Juneperiod, hurt by losses at its mortgage lending unit ResCap and write-downs onthe value of leases for sport/utility vehicles.

U.S. auto sales for September sank to a 15-year low. Industry executives and autoanalysts have said they are not seeing any rebound in U.S. auto sales so far in October.

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All

 

Sponsored by

The Ford Super Duty is a line of commercial pickup trucks, specifically the F-250 through F-550.

Read more

Up Next

More From The World's Largest Fleet Publisher