Want a new car? No credit? Bad credit? Forget it!
Jstas
Posts: 14,806
You ain't gettin' squat according to GM!
GMAC Now Officially Requires 700-Plus FICO Score For New Car Loan
The article:
http://jalopnik.com/5062876/gmac-now-officially-requires-700+plus-fico-score-for-new-car-loan
The letter:
That's a dumb move in my opinion. GM doesn't really have anything that anyone is really interested in. They have some real nice cars that are real cheap but the styling doesn't scream "DRIVE ME!". Most people are buying GM's because of low cost and the whole "Buy American" thing. I think this will alienate the low cost buyers because those are the people looking for a ride on the cheap 'cause their credit isn't 700+.
I'm expecting to see quite a few more Hyundais on the road because of boneheaded moves like this.
GMAC Now Officially Requires 700-Plus FICO Score For New Car Loan
The article:
http://jalopnik.com/5062876/gmac-now-officially-requires-700+plus-fico-score-for-new-car-loan
The Financiapocalypse continues. We just received a copy of an e-mail that went out at GMAC, the lending arm jointly owned by GM and Cerberus, from Barbara Stokel, GMAC's EVP of North American Operations. Here's the most salient detail: you'll now need a minimum 700 credit bureau score to get a car loan at dealer invoice or below from GMAC. The full e-mail is below the jump to explain that news as well as the news they'll be restricting approval of contract terms beyond 60 months unless a buyer qualifies for GM-supported 72-month incentives. So what does this means to you? Well, unless you've got above average credit, it's going to become much more difficult to buy a new car. Frankly, that's probably a good thing for consumers. It's probably a bad thing for GM sales numbers.
The letter:
GMAC Leaders and NAO Team:
In light of the disruption in the credit markets, GMAC NAO is announcing a temporary, more conservative purchase policy for retail auto contracts in the United States. In the short term, we will limit auto contracts to those consumers who have a minimum 700 credit bureau score, with an advance rate equal to or less than dealer invoice. This means that consumers will be required to make a down payment. In addition, we will restrict approval of contract terms beyond 60 months, except for those customers qualifying for GM-supported 72-month incentives currently advertised.
These are extraordinary times, and we must take these prudent steps to focus our resources on high quality retail contracts and critical areas such as dealer wholesale financing, until the credit markets are stabilized. To assist dealers, GM has enhanced its retail incentive programs in October to utilize more cash incentives. GM and GMAC will continue to work collaboratively through these challenging financial market conditions.
Barbara Stokel
Executive Vice President, North American Operations
That's a dumb move in my opinion. GM doesn't really have anything that anyone is really interested in. They have some real nice cars that are real cheap but the styling doesn't scream "DRIVE ME!". Most people are buying GM's because of low cost and the whole "Buy American" thing. I think this will alienate the low cost buyers because those are the people looking for a ride on the cheap 'cause their credit isn't 700+.
I'm expecting to see quite a few more Hyundais on the road because of boneheaded moves like this.
Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you!
You're just jealous 'cause the voices don't talk to you!
Post edited by Jstas on
Comments
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It appears they're tired of paying the repo man."He who fights with monsters should look to it that he himself does not become a monster. And when you gaze long into an abyss the abyss also gazes into you." Friedrich Nietzsche
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I think about everyone is the same with regards to good credit score these days. GM isn't the only, when I got approved for my Honda loan back in May it was the same.
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If you want to buy a GM car you don't HAVE to finance through GMAC. It may be more convenient but certainly not a requirement.If you will it, dude, it is no dream.
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bobman1235 wrote: »If you want to buy a GM car you don't HAVE to finance through GMAC. It may be more convenient but certainly not a requirement.
That's what I was thinking. Don't most dealers work with a laundry list of crappy finance companies willing to deal out high interest rate loans to deadbeats? -
That's what I was thinking. Don't most dealers work with a laundry list of crappy finance companies willing to deal out high interest rate loans to deadbeats?
Yep, at least in the time leading up to the current situation we're in today. As long as you had some money down or collateral, they could find you somebody to loan you the money. It may be at 21%, but you could get it.Wristwatch--->Crisco -
Captive Auto finance companies (like GMAC) need to borrow in order to lend. they need to borrow from the same banks that are not lending right now. Available credit in hugee amounts just isnt out there, therefore GMAC has to limit what they have to the most deserving customers on the retail side......and to ensure they have enough to finance dealer floorplans (basically, lending the dealer the money to put the cars on the lot.......also known as "where they really make there money")
not a question of a "smart move" or not. they probably dont have a choice, they arent going to tkae limited borroeing they have access to and loan it out lesser credit risks.
this will hopefully open up when the bailout package starts actually workingLiving Room 2 Channel -
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The point I was trying to make is that a credit score above 700 is above average and alienates probably a good 80% of their customer base. I don't disagree with anything said in this thread so far.
Sorry if I made it seem like I was trashing GM for car sales and not GMAC for financing. I just don't think a financing arms is going to do good for itself by telling 80% of the people knocking on their door to go away, they aren't good enough.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
Only lending to people who have a good credit score and can repay them, what a novel idea!
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I thought GMAC was the only profitable portion of their co.?I refuse to argue with idiots, because people can't tell the DIFFERENCE!
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You ain't gettin' squat according to GM!
GMAC Now Officially Requires 700-Plus FICO Score For New Car Loan
The article:
http://jalopnik.com/5062876/gmac-now-officially-requires-700+plus-fico-score-for-new-car-loan
That's a dumb move in my opinion. GM doesn't really have anything that anyone is really interested in. They have some real nice cars that are real cheap but the styling doesn't scream "DRIVE ME!". Most people are buying GM's because of low cost and the whole "Buy American" thing. I think this will alienate the low cost buyers because those are the people looking for a ride on the cheap 'cause their credit isn't 700+.
I'm expecting to see quite a few more Hyundais on the road because of boneheaded moves like this.
My mechanic buddy was talking with some pride about his new Saab, a Swedish company owned by GM. He said 47% of the car is German parts and best of all, the transmission is Japanese.
I passed a real nice-looking Hyundai luxury car yesterday. They're making the Japanese a bit nervous, I think. -
My mechanic buddy was talking with some pride about his new Saab, a Swedish company owned by GM. He said 47% of the car is German parts and best of all, the transmission is Japanese.
I passed a real nice-looking Hyundai luxury car yesterday. They're making the Japanese a bit nervous, I think.
My comment about Hyundai was not a good one.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
Only lending to people who have a good credit score and can repay them, what a novel idea!
A "good" credit score is 660-749
A "fair" credit score is 620-659
A "poor" credit score is usually around 560-619 with anything below that considered "bad" or "none".
An "excellent" credit score is above 749.
The greater majority of the population falls under the fair to good range. With GMAC being a large branch of GM and where not only a good deal of car loans but home equity and even mortgage loans have come from, eliminating anyone with less than a 700 score on their credit from obtaining a loan is a good way to lose 50%+ (probably close to 70%) of your customers.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
My comment about Hyundai was not a good one.
Yes, I got that. What's that saying about it being a dog-eat-dog world and it's GM wearing the Milkbone underwear? -
A coworker of mine drives a Hyundai...
He went to open his door one day and ripped the door handle square off!
My thoughts on GM will go unsaid as I have a small opinion of that company and their products
As for this thread - I think its great to only loan money to people who can pay back... brilliant- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit. -
I still see commercials for " we'll pay off your trade, no matter what you owe"
WTF?
I also saw a newspaper acticle saying how the crunch was tough.
Some smuck couldn't buy a car unless he put a $1000 down. Once again, WTF?
Are we that stupid? If you don't have a $1000 to put down on a car,
Maybe you shouldn't be buying a new car. If you're up to $15K underwater,
Hang on and pay it off. GMAC is in deep doo doo. There's a whole lot of
people defaulting on loans. Hence the good to great credit rating requirement.
They can't handle any more defaults. The car finance thing is as bad or worse
than the home loan industry."The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
Yeah I work beside a bank and they have a repo lot behind the bank - and lets say it stays full of cars on a frequent basis...
Amazing...
Seen alot of nice vehicles too- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit. -
I see no problem with this. As far as I see it, if one is responsible with their credit and pay back, on time, the debt they owe they'll have good credit so there's nothing to worry about.
Only time I wouldn't see it that way would be due to fraudulent activity that one is not in control of.If...
Ron dislikes a film = go out and buy it.
Ron loves a film = don't even rent. -
Even had a strange call from nissan the other day ....said they were calling their previous customers with excellent credit ( Both mine and my wifes well over 749 ) to see if they were ready for a new car yet ????
I asked him if nissan made such poor vehicles ( I bought a new 04 truck and my wife bought my daughter a new 04 suv ) that he figured we needed new ones already ??
He said excellent credit customers tended to purchase new vehicles more frequently, and that was the reason for the call ?? I told him I usually purchased a new motorcycle every couple of years , but that the last new car/truck I had purchased before my new 04 was an 89 year model truck
I guess they ( Nissan must be thinking like GM I guess ) are banking on these great credit customers purchasing more new vehicles keeping the loans flowing....I dont think so.
Told him I was going to drive it till the wheels fell off and ended the call
The first rule of Fight Club is you don't talk about Fight Club -
Perhaps, but anecdotes aside, of recent rentals I have used, from GM to Ford to Chrysler, by far the best mid-size car was a Hyundai Sonata. More horsepower, more features, and a better interior. The Sonata was cheap junk compared to our lil' ol' 2003 VW Golf base model though ... in terms of finish that is, and some of the features.My comment about Hyundai was not a good one.
Test drove Saab too a couple of years ago. Loved it. That four cylinder turbo was excellent. Four cylinder economy with six cylinder performance. The VW Passat 2.0 Turbo was much more polished though. In the end we didn't get it, but we did get to meet Ahnold (yes, the Gubernator) at the dealership! No kidding! That's the second time I met him by accident.Alea jacta est! -
Good credit is only half of the deal though. At 21 when i bought my 04 silverado ecsb i had a credit score of 779.
But it wouldn't have meant jack if my debt to income didn't meet up with the ability to buy a new car.
So saying you gotta have great credit isn't a big deal really.IMO. You gotta have funds and credit these days just how it is.Living Room Rig:D
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Check out Toyota or Honda. I'd like to buy American but there's no sense wasting my money just to keep US automakers (and mechanics) supplied with cash flow; and the thing about the japanese transmissions is correct in that their durability exceeds US-made trannys.
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I have always felt if you can't pay cash for it you shouldn't buy it except a house;)Please. Please contact me a ben62670 @ yahoo.com. Make sure to include who you are, and you are from Polk so I don't delete your email. Also I am now physically unable to work on any projects. If you need help let these guys know. There are many people who will help if you let them know where you are.
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Ben -
I quite like Honda, but I find Toyota styling very dowdy and "old lady car" like. I have not owned either though.average_guy wrote: »Check out Toyota or Honda. I'd like to buy American but there's no sense wasting my money just to keep US automakers (and mechanics) supplied with cash flow; and the thing about the japanese transmissions is correct in that their durability exceeds US-made trannys.
What's the deal with transmissions? I, nor anyone I know, have never had a single transmission fail, American made or otherwise ... (touches wood quick!).Alea jacta est! -
In those capacities the Sonata is a very nice car. The single reason that I wouldn't ever buy one is because of the front end suspension. The things have a very clunky front end when going over any sort of bumps. Compared to my Accord which is solid, smooth, and tight, the Sonata feels very (sorry) American in it's suspension.Perhaps, but anecdotes aside, of recent rentals I have used, from GM to Ford to Chrysler, by far the best mid-size car was a Hyundai Sonata. More horsepower, more features, and a better interior.comment comment comment comment. bitchy. -
I quite like Honda, but I find Toyota styling very dowdy and "old lady car" like. I have not owned either though.
What's the deal with transmissions? I, nor anyone I know, have never had a single transmission fail, American made or otherwise ... (touches wood quick!).
Our 1997 Windstar stranded our daughter in the freeway in Worcester, MA in the middle of the night in 2006 when the transmission packed it in at 166,000 miles. Totaled the vehicle as far as I was concerned; we had AAA tow it to our house and then donated it to some charity or another as is. Modern automatic transmissions (at least in "American" autos) apparently have some pretty 'disposable' pieces in them.
I think manuals are still OK. My Focus ZX3 5-speed (again, touching wood!) is doing fine at 151k miles (and the original clutch). -
mhardy6647 wrote: »Our 1997 Windstar stranded our daughter in the freeway in Worcester, MA in the middle of the night in 2006 when the transmission packed it in at 166,000 miles. Totaled the vehicle as far as I was concerned; we had AAA tow it to our house and then donated it to some charity or another as is. Modern automatic transmissions (at least in "American" autos) apparently have some pretty 'disposable' pieces in them.
I think manuals are still OK. My Focus ZX3 5-speed (again, touching wood!) is doing fine at 151k miles (and the original clutch).
Modern overdrive trannies aren't very good. Ford and Chrysler have big problems there. Double so for minivans.
Back on subject. My neighbor was a supervisor at GMAC. Key word
"WAS". GMAC may go under. http://thekeithdavisshow.com/25.html"The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
The same company that owns Chrysler also owns GMAC. Go figure!!!"SOME PEOPLE CALL ME MAURICE,
CAUSE I SPEAK OF THE POMPITIOUS OF LOVE" -
Well, I have to go get a car/suv/crossover or whatever today or tomorrow so I will see how good/bad it is I guess. I have not had to get myself a car since 1992 so this should be interesting to say the least. Wish me luck,lol.:p
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mhardy6647 wrote: »I think manuals are still OK. My Focus ZX3 5-speed (again, touching wood!) is doing fine at 151k miles (and the original clutch).
Manual transmissions are traditionally much simpler in design. Still, my brother blew one apart in a saturn he owned, and my dad lost one in his old truck. Both had been abused pretty badly in different ways... but yes, manuals tend to be more reliable.Ludicrous gibs!
