GM partners with credit union to offer $10 billion in new car loans
Anyone who's tried to go get a loan for a new car has surely found it a bit tougher today than it was just a few months ago. Every automaker is having difficulty selling new cars in this market, and none more so than General Motors and its finance arm GMAC, which recently limited loans to individuals with a FICO rating of 700 or higher. The General has gone so far as to reward salespeople and dealerships for sending customers to financing deals outside of GMAC.
A group of 1,200 Credit Unions in Midwestern states, however, have banded together to offer some $10 billion in new car loans to their members. Not only are these CUs attempting to offer lower rates compared to larger banks, but the Michigan Credit Union League has also arranged for General Motors to offer its members Supplier Pricing, which, on average, lowers the price of a new car by 4.5%. Ford and Chrysler are also reportedly talking with the MCUL to offer attractive pricing options. And gee, if these credit unions have so much money to loan out, why doesn't GM just ditch Congress and ask them for a line of credit?
[Source: Love My Credit Union via Detroit News]
Reader Comments (Page 1 of 1)
miles 6:41PM (12/10/2008)
Awesome! Totally awesome!
Take that you stupid 3-headed dog!!!
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opjpjpjp 6:47PM (12/10/2008)
Now if they could just create some jobs so we can afford these new cars everything would be peachy.
Oh wait, we're all going to be building roads for Obama. Woopy.
(and the march toward socialism continues)
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Rich 7:10PM (12/10/2008)
Would that be "national socialism" you're talking about? Just trying to jog your memory: the Third Reich, Arbeit Macht Frei ... and autobahns?
No, Obama's plan is nothing like socialism, national or otherwise.
Government is complicated. That's why *you* are not in power; thank God.
dealer 7:25PM (12/10/2008)
Americans are such total sellouts that they don't even realize THIS IS THE ONLY COUNTRY IN THE WORLD THAT ACTUALLY IS AN OPEN MARKET!!
YOUR BELOVED JAPANESE ARE SO CLOSED THAT THEY ONLY ALLOWED A GRAND TOTAL OF
4%
4%
4%
4%
4%
4%
4%
4% DID YOU GET THAT??????????
4% IMPORT PENETRATION INTO THEIR COUNTRY INCLUDING A L L GLOBAL BRANDS COMBINED!!!!
Combine that with nationalized healthcare and when somebody asks you why 'Detroit' isn't competing even after cutting itself in half,
it's because we allowed Honda, Toyota, Nissan, Lexus, Mercedes, BMW, VW/Audi, Hyundai, Kia and others to compete as FULL-LINE MANUFACTURERS here, while experiencing ALL KINDS OF PROTECTIONISM ON THEIR HOME TURF.
Do you actually believe VW, ADAM OPEL, Volvo, BMW, and Mercedes can't compete in Japan???
Hyundai/Kia??? Korea by the way was worse than Japan until GM bought it's way into a bankrupt Daewoo!!!
There's NO WAY
FOR THIS EVENTUALITY OF INSOLVENCY to have possibly been avoided given this reality!!
Now you American idiots want to do the same with Chinese cars, when you can't invest in their market without a 50% Chinese partner!!!
So what we need now is for the Congress to fund a VEBA trust EFFECTIVE JANUARY 1
TO TAKE THE HEALTHCARE OF THE U.A.W. OFF DETROIT'S BOOKS NOW!!!
Then, because the world will be 'so upset' if we instituted protectionist measures just like all the other countries, we pass stimulus for fuel-efficient American cars, defined as those getting 30MPG or better.
$2500 TAX CREDIT for domestic fuel efficient autos. Rises to...
$5000 TAX CREDIT for domestic HYBRID AUTOS. Rises to...
$7500 TAX CREDIT for domestic ELECTRIC AUTOS.
THIS FORMULA SHOULD BE IMPLEMENTED THRU THE 2010 CALENDAR YEAR.
It gives demand-side incentive to get full fuel-efficient lineups fully in gear at the BIG 3. Most of you probably don't know GM and Ford cars get just as good mileage as the Japanese do.
Then, specifically target banks that recieved bailout money to force them to loan A and B paper in renewed automotive programs, as well as SUPER-LOW-INTEREST
LEASES BASED UPON CONSERVATIVE RESIDUAL ESTIMATES. Now those who want a car can get financed, just not sub-primers...
Combined with a similar plan to stimulate buying of foreclosed homes, we can get this country going again, and speed time to exit this recession, lifting ALL
BOATS...
THIS IS THE SIMPLE PLAN THAT NEEDS TO BE PUT IN PLACE. TELL A FRIEND. GET IT DONE.
Mr.Oak 7:20PM (12/10/2008)
You, my friend is what we here in the northeastern US call an IDIOT.
The exactly how socialist did the US become after the government built the national Highway system? You obviously got your definition of socialism from the clowns on Fox News.
Until you've lived in a socialist country (95% of you ignorant snobs haven't) You don't know what you are talking about.
Why don't we just disband the federal government (remember Mad Max?) and see how long whining little biatches like Hanity, O'Reilly and Limbaugh would survive.
BTW: your guy lost, quit yer whining.
happy_penguin 7:14PM (12/10/2008)
This is one example of the kind of "creative" thinking that could save the American automobile industry. I hope it works out well.
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MoonRover 8:01PM (12/10/2008)
Fantastic, hopefully lots of people will take advantage of this offer.
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ack154 8:10PM (12/10/2008)
It's not the financing that is pushing me away from the Big 3 right now... they just don't offer anything that I really want.
Now... if Ford would just bring the damn Focus RS over here, I'd be camping out at the dealer to throw down a deposit. No fake.
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Yura 2:46PM (12/11/2008)
isn't similar to what started housing market crunch?
no credit, bad credit - not a problem. get a car.
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berne1 9:39PM (12/10/2008)
Any word on whether or not this might include a return of decent leases? If not, they're still going to lose returning lessees to the competition at an alarming rate.
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James 11:31PM (12/10/2008)
I don't believe GM wants to sell cars. I went to two dealers and found in order to get the advertised rebate I must turn in a lease car. Why should a person turning in a lease get a better price. I own two GM cars, offered to trade one if that would make them happy, the answer, no you must turn in a lease car. I was thinking of purchasing a new Impala and if my wife liked it I would buy her one. I always pay cash so it would have been a clean deal. So the heck with GM. Why not give all customers the same rebate. I doubt they can find enough lease returns to stay in business. GM's advertising is dumb and a waste of their money.
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BoxerFanatic 1:00AM (12/11/2008)
How stupid is this?
They want taxpayer money to operate for another few months, but they can raise money to put the citizenry into more debt?
Nobody has learned a damn thing. Mortgages, HELOCs, Car loans and leases, Credit cards, and other consumer debt.
What do you think has lead to this economic fiasco? EASY CREDIT, sometimes forced by government to cater to people who were bad credit risks, but a lot to people who were encouraged to over-leverage themselves.
Now prices are high and going higher. Debt is harder, and companies don't like the decline in sales, and are going to the government for bail outs.
But, yeah, lets both leverage people with MORE consumer debt that they can't afford, and sell it to them as a patriotic, if irresponsible act, AND, lets leverage their future earning potential, by printing money, ADDING to the inflation, and certainly increasing the liability to the taxpayers, so that irresponsible corporations and GROSSLY INCOMPETENT government can continue doing what they are doing.
But sure, squeeze the people from both sides, while the morons in power gather more power, and horde more of your money, and continue to sell you products that they decide are good for you, regardless of whether they ARE good for you or not.
This is going to turn out to be wage slavery for socialist government controlled enterprise. All with the illusion of protection from the economic boogeyman for the poor people who don't know what they really need, and need to have their jobs protected by big brother.
Orwell must be so sad about being so right. 1984 was supposed to be a cautionary tale, not a user manual, but we are going that direction, apparently.
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ronnie schreiber 1:52AM (12/11/2008)
Now if I can only get AAA in the industrial midwestern states to discourage people from traveling to any states whose senators want Detroit to die, in favor of Puerto Rico and the US Virgin Islands we might get somewhere.
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