Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: GMAC gets another $7.5B from U.S gov't.]]>http://www.autoblog.com/2009/05/22/report-gmac-gets-another-7-5b-from-u-s-govt/http://www.autoblog.com/2009/05/22/report-gmac-gets-another-7-5b-from-u-s-govt/http://www.autoblog.com/2009/05/22/report-gmac-gets-another-7-5b-from-u-s-govt/#commentsFiled under: , , , ,

According to The Detroit Free Press, the U.S. Treasury has dumped another $7.5 billion into GMAC's coffers just two weeks after the bank was told by federal regulators that it needed billions in order to survive. In another government-backed boost, GMAC is now allowed to issue FDIC-insured debt. Both actions are reportedly designed to help restore faith in the damaged U.S. credit markets.

Founded in 1919, and traditionally a longtime lender to General Motors dealers and customers, the government recently ordered GMAC to extend the same lending offers to Chrysler dealers and their customers. "This new arrangement with GMAC will help provide a reliable source of financing to both auto dealers and customers seeking to buy cars," said Treasury Secretary Timothy Geithner. Approximately $4 billion of the new infusion will support go to support dealer and retail loans for the Chrysler brand, while the remaining $3.5 billion is designed help GMAC address its capital needs in order to survive.

[Source: The Detroit Free Press]

REPORT: GMAC gets another $7.5B from U.S gov't. originally appeared on Autoblog on Fri, 22 May 2009 18:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>billionsChryslerGMACinfusionlendingTimothy GeithnerTimothyGeithnerU.S. TreasuryU.s.TreasuryFri, 22 May 2009 18:27:00 EST<![CDATA[GMAC resumes subprime lending]]>http://www.autoblog.com/2009/04/02/gmac-resumes-subprime-lending/http://www.autoblog.com/2009/04/02/gmac-resumes-subprime-lending/http://www.autoblog.com/2009/04/02/gmac-resumes-subprime-lending/#commentsFiled under: , ,



GMAC has loosened the purse strings, with General Motors' finance arm allocating $6 billion for auto loans for the next 60 days. The 60 day mark is critical to GM, as it is the government's drop-dead date to satisfy Auto Task Force viability requirements. The cash infusion will help struggling dealers with dried up credit channels, but it will also be used to finance cars and trucks to people with credit scores under 620. The under 620 crowd is referred to as subprime, a term that is now synonymous with the words "bailout" and "recession."

Back in October, GMAC restricted lending to customers with scores over 700, and when the U.S. government provided a $6 billion in loans, the minimum score was lowered to 620. GMAC insists that the under 620 score would be approved sparingly, and buyers would still be required to qualify for financing. NADA chairman John McEleney says that the lowered credit score minimum could result in the ability to help 30-35% more Americans get into a new car or truck. And while overplaying the subprime card can lead to more trouble, at this point, the General clearly has to do something to get metal moving again.

[Source: Automotive News subs req'd | Image: Joe Raedle/Getty]

GMAC resumes subprime lending originally appeared on Autoblog on Thu, 02 Apr 2009 16:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>620 credit score620CreditScore700 credit score700CreditScorefinancingGMgmaclendingsub primesubprimevehicle financingVehicleFinancingThu, 02 Apr 2009 16:20:00 EST<![CDATA[Wanted: Lender for 1,000 GM vans]]>http://www.autoblog.com/2009/02/24/wanted-lender-for-1-000-gm-vans/http://www.autoblog.com/2009/02/24/wanted-lender-for-1-000-gm-vans/http://www.autoblog.com/2009/02/24/wanted-lender-for-1-000-gm-vans/#commentsFiled under: , , , ,



Dave Capps is in the business of renting vans. In order for him to stay in that business, he needs to buy new vans - 1,000 of them, to be precise. And although he's been a GMAC customer for 20 years, remains in good standing, and gets much of his current inventory financing from GMAC, he can't get the credit he needs to buy the new vans. So Capps rented a billboard in Dallas to be an appeal to anyone willing to lend him the money.

GMAC hasn't discussed why it won't give Capps the necessary credit. According to Capps, "GMAC said that they don't do vehicle loans and their new GMAC bank is prohibited from loaning money for vehicles. I have to take their word that they can't do that." We're not sure how that conversation went down, but if Capps really was told that newly minted bank holding company GMAC can't loan money for vehicles, well, we have a lot of questions.

After GMAC received a $5 billion loan from the government, it said it would open up dealer financing. A short time later, dealers said they didn't notice any opening and kept getting their credit applications rejected. While Capps isn't a dealer, he does share the need to purchase GM products to keep his business going. We don't know what GMAC's reasons are for keeping the vault locked, but we hope they're pretty good if it means turning down a guy who wants a thousand vans. Hat tip to Rick!

[Source: DFW Stangs]

Wanted: Lender for 1,000 GM vans originally appeared on Autoblog on Tue, 24 Feb 2009 07:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>car buyingCarBuyingcommercial trucksCommercialTrucksetcfinancialsgmgmaclendingvanvansTue, 24 Feb 2009 07:28:00 EST<![CDATA[GM launches new campaign to ease credit worries]]>http://www.autoblog.com/2008/10/16/gm-launches-new-campaign-to-ease-credit-worries/http://www.autoblog.com/2008/10/16/gm-launches-new-campaign-to-ease-credit-worries/http://www.autoblog.com/2008/10/16/gm-launches-new-campaign-to-ease-credit-worries/#commentsFiled under: , , , ,

After announcing earlier this week that GMAC would only finance customers who hold credit scores higher than 700, General Motors has decided it would be prudent to reassure consumers that they are still in the business of securing loans and selling vehicles. Starting Friday, GM will launch a "Financing That Fits" campaign on a national level. Through advertising on television, newspaper, radio, and the Internet, GM will promote dealer financing with GMAC Financial Services and, for the first time, with other lenders. To further restore consumer confidence, the ads are also designed to promote the experience and expertise of the dealership professionals who work in finance and insurance. The economy has taken a serious toll on GM's showroom traffic over the past few weeks, and the announcement Monday of stricter lending policies dried up business even further. The automaker is hopeful that its new ad campaign, and cash-back deals of up to $6,000 on every 2008 vehicle left in stock, will bring them back in.

[Source: Automotive News, subs. req'd]

GM launches new campaign to ease credit worries originally appeared on Autoblog on Thu, 16 Oct 2008 10:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>advertisingcampaignCreditFinancingFinancing that fitsFinancingThatFitsGeneral MotorsGeneralMotorsGMGMAClendingloanThu, 16 Oct 2008 10:31:00 EST<![CDATA[GMAC dramatically cut back on leases in September]]>http://www.autoblog.com/2008/10/06/gmac-dramatically-cut-back-on-leases-in-september/http://www.autoblog.com/2008/10/06/gmac-dramatically-cut-back-on-leases-in-september/http://www.autoblog.com/2008/10/06/gmac-dramatically-cut-back-on-leases-in-september/#commentsFiled under: ,

Leasing is down industry-wide by about 50% from 2007 levels, but General Motors' captive credit arm took an even bigger bite out of its vehicle leasing in September. GMAC leased only 2% of all GM products in September, and the decision to do so had everything to do with the recent events of the financial markets. While leasing was down GM-wide in September, GMAC and Chevrolet were hit the hardest. The General's two volume brands accrued only .6% and .7% of its sales through leasing, compared to 11.2% and 13.6% respectively last year. Leasing is virtually non-existent for vehicles with low residuals, and Cadillac, which typically leases over 40% of its vehicles, leased at an 8.4% clip last month.

Nobody on Wall St. is purchasing securities right now, giving GMAC very little money to offer leases to its customers. A controlling interest in GMAC was purchased by Cerberus well before the private equity firm took control of Chrysler. Chrysler stopped leasing all together on August 1 in response to the huge losses it took on returned leases of SUVs and trucks. Both GM and GMAC say the break from leasing is only temporary, but with the financial markets still in flux, don't expect this trend to reverse itself any time soon.

[Source: Automotive News, sub. req'd]

GMAC dramatically cut back on leases in September originally appeared on Autoblog on Mon, 06 Oct 2008 10:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financial crisisFinancialCrisisgmgmacleasinglendingMon, 06 Oct 2008 10:59:00 EST