Thursday, October 16, 2008
GMAC restricts new car finance offer
 US car finance sales could plunge in the coming months following the announcement by GMAC Financial Solutions that it will only lend to prime borrowers with credit scores of over 700 points.The finance company also said it will restrict contracts with higher advance rates and longer terms. With the vast market share the company commands in the USA, some analysts believe these new restrictions could result in one in four car loans being refused. This problem could be further exacerbated because dealers may have trouble finding alternative lenders if they continue to pass their best contracts to GMAC. A GMAC statement said: "These changes in pricing and underwriting are elated to the current market environment, which has reduced access to funds and increased the cost of funds." DATED: 16.10.08 FEED: MT |
