Car loan shortages could spell catastrophe

The Australian car industry could find itself in dire straits next year after a number of big car loan financiers exit the market.

Industry expert Robert Gottliebsen has warned that with the departure of GMAC and GE Money, there is a danger that hundreds of dealers will shut up shop as they fail attract new lenders.

Writing in the Business Spectator, he warned that unless something is done, thousands of jobs could go and millions of Aussies could be left struggling to find a car loan.

However, he went on to explain that the Rudd clan has got off its laurels and is mulling over ways to avoid such a scenario.

Among the ideas being considered is the introduction of a guaranteed car loans scheme, where dealers are automatically approved credit to extend to customers.

While this was touted as a hot short-term solution, Gottliebsen explained that in the long term, banks are going to need to step up and fill the gap left by the two big lenders.

GMAC announced that it would withdraw all new car loan offers last month, not soon after its arm on the other side of Pacific was swiftly brought in amid a funding crisis.ADNFCR-1761-ID-18887117-ADNFCR