Detroit, Michigan – GMAC Financial Services has announced that it will immediately resume auto financing for a broader spectrum of U.S. customers, as a result of expanded access to funding with its upgrade as a bank holding company. The U.S. Department of the Treasury has purchased US$5.0 billion of its preferred membership interests and warrants under the Troubled Assets Relief Program (TARP).
The company said that it will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, a significant expansion from the 700 minimum score it put in place two months ago.
“The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers,” said Bill Muir, president of GMAC. “We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S.”
GMAC said that it will not finance higher-risk transactions with customers with a credit bureau score of 620 or below, and will resume its traditional spectrum of prime-based credit, appropriate pricing for risk, and requiring down payments when necessary. The expanded policy will apply to both new and factory-certified used vehicles.