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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]

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    • 1 Second Ago
      • 6 Years Ago
      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.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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.
      • 6 Years Ago
      Awesome! Totally awesome!

      Take that you stupid 3-headed dog!!!
      • 6 Years Ago
      isn't similar to what started housing market crunch?
      no credit, bad credit - not a problem. get a car.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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.
      • 6 Years Ago
      Fantastic, hopefully lots of people will take advantage of this offer.