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.