Avoid the Credit Crunch with Help from GMAC
by Steve Cypher on Friday, October 31st, 2008In a program that began earlier this month, GMAC is offering qualified buyers incentivized financing on select GM Certified Used Vehicles.
Stretching your Dollars
Here at Auto Credit Express, we’re always looking for a way to stretch those buying dollars, which is why some recent news from General Motors caught our attention: Beginning on the October 1st and running through November 3rd, GMAC will offer a 3.9% APR incentivized rate for qualified buyers that choose a Chevrolet Impala or Silverado, Pontiac G6 and GMC Sierra GM Certified Used Vehicle. Eligible terms for this rate are from 24 to 60 months and the vehicles must be purchased, obviously, from participating GM Certified Used Vehicle dealers.
In addition, well-qualified customers can also receive a 4.9% APR incentivized rate for purchasing a 2004-2009 Chevy Trailblazer, Suburban or Tahoe, Buick Lacrosse, GMC Envoy, Yukon or Yukon XL vehicle – again at a participating GM Certified Used Vehicle dealer.
Vehicles Include Enhanced Warranty
As we mentioned in a previous article, GM has also bolstered its Certified Vehicle Warranty in an effort to give consumers more value for their used car dollar. According to Paul Pejza, manager of the GM Certified Used Vehicle program, “Shoppers can receive these attractive finance rates on some of our most popular GM Certified models, as well as a bumper-to-bumper warranty for 12 months or 12,000 miles, whichever comes first, now standard on every GM Certified Used Vehicle. GM Certified provides the peace-of-mind assurances and value that come with a fully inspected and reconditioned used car or truck backed by both the dealer and General Motors.”
The Bottom Line
According to GM “A monthly payment at 3.9% APR financing for 60 months is $18.37 for every $1,000 financed. A monthly payment at 4.9% APR financing for 60 months is $18.83 for every $1,000 financed.”
If this kind of financing works for you, now might be a good time to take a look at a GM certified used vehicle. With a 12/12 warranty and, in a 2 year old car, avoiding the big depreciation hit that happens during the first couple of years, buying a car this way can really make sense.
Hello,
I am writing in response to this article. I have leased a
GM for the past 18 years. It was time for me to turn in my last lease in August of 2008 when GM denied me any financing or leasing. I did go through some bumps and bruises but not once throughout did GM have to threaten to repossess my car nor get a payment more than 30 days late. I feel that GM has not loyalty to their returning customers. Now I ended up going through another finance company charging me extranomical prices to drive a GM vehicle. So my question is since you all are now going through bankruptcy are you all a little bit more leanant on customers who still love GM but may have had some life situations that have allowed their credit to become severely bruised? I need for someone to get back with me because I want to get into another Cadillac (even if its used) a more up-to-date year without paying the interest rate that I am paying.
Thank You,
Shirmarrick Marshall
shirmarrick@att.net
Shimarrick,
We are not lenders. We were only writing about GMAC in a blog article. That being said, you have to remember that in October of last year, GMAC had begun tightening its credit policies (it would not loan to customers with a credit score below 720) in response to the fact that it had less money to lend. It was a fact of life back then and you undoubtedly got caught in the crossfire.
Unfortunately, you are only 8 months into your current loan. This means that you are probably in a negative equity situation on your current vehicle which makes trading it in or refinancing your loan difficult, unless you can come up with the negative amount, plus a down payment on the new loan, in cash.
In most cases, you have to be at least two years into a loan before it can be refinanced.
GMAC has been looking at customers with credit scores below 720 since April (it said then it would look at scores below 620) but the equity you have in your current vehicle could be an issue.
Hello, I have a bone to pick with GMAC. I have owned Chevy and GMC vehicles all my life (from 16 years old to 63 years old), every vehcle I have purchased was through GMAC, and most times the loan was paid off early.
This week I tried to purchase a new Acadia SLE-2, and was promptly turned down. Then they told me they would need 2 years of bank statemnents showing installment loan payments. This is way beyond acceptible, not only with me, but my Bank.
In February 2008 I had to file Bankruptcy due the death of my Wife, her death left me with $347,000.00 worth of medical bills
The Bankuptcy was fully discharged, and life goes on.
My Credit Scores are in the mid to high 600s, could be better, but then again my scores with GMAC have never been this high.
The vehicle I wanted to buy is $33,000.00 wth a $5200.00 trade and $5000.00 in down payment, not including a GM Incentive of 1750.00.
So, even with prior purchases, never have stiffed GM, a good trade and a fair cash down payment, they still say no.
Screw them, no wonder they are in trouble, not only that, but hey, who’s money bailed them out? Me and the other tax payers.
After this it may be a VERY long time before I buy my beloved GM vehicles again, HELLO JAPAN.