GMAC reins in car loans
In light of the recent financial crisis, GMAC has announced that it will be limiting access to its car loans, so that only those with healthy credit ratings can get finance.
The company, which offers car loans for GM vehicles, said earlier this week that the collapse of institutions around the world had made it harder to get loans from other banks at good rates.
As such, it said that only those US citizens with high credit scores would be able to bag themselves a car loan with the company.
“The company currently expects these actions to remain in place until the credit markets stabilise and accessibility improves,” the company said.
In addition to the “toxic” sub-prime home loan debt which has crippled US lending, car loans have also become dodgy territory for many firms, leading President Bush to call for them to be bought up the Treasury to allow banks to clean their hands of car loan debt.
A representative for the Aussie arm of the business told Mozo that at the moment, the car loan restrictions will only affect US buyers.