[Vinsetta]

GM, lender restrict longer-term loans


Donna Harris
and Jim Henry

Automotive News | October 9, 2008 - 3:36 pm EST




General Motors and its finance arm are curtailing auto loans of 60 and 72 months.

GMAC Financial Services is capping loans for some vehicle buyers at 60 months. And an industry analyst said today he expects GM to eliminate incentives on loans of 60 months and longer.

GMAC’s maximum loan term is 72 months. But this week, the lender restricted some borrowers to loans of no more than 60 months.

http://www.autonews.com/article/20081009/ANA05/810090297/1142

 

[RamJet502]

GMAC and GM were put on "creditwatch" today by S&P, I bet a lot of GMAC loans become "restricted".

 

[civilzues]

if your paying for a car for more than 72 months, you don't need to be buying a new car. Hell 72 months is long ass time.

 

[61BelAir]

damn the bad luck, and I was hopeing to buy a ZR1 financed over 20 years!

 

[johnnyl321]

damn the bad luck, and I was hopeing to buy a ZR1 financed over 20 years!

a lot of people do that exact thing....but they call it a "home equity" loan.

 

[montrealvue]

let's see.....no more leases here and loans will be capped at 5 years.....is GM still the car business?

 

[Buickman]

no one finances through those fools anyway. mute point. GM and GMAC are soon belly up, who cares????

 

[johnnyl321]

no one finances through those fools anyway. mute point. GM and GMAC are soon belly up, who cares????

Jim, I'm curious as to why you stay with GM. You seem to like the car business and I saw one of your posts saying that you're now leasing Toyotas and Hondas. Have you gone on to a new dealership, or does your dealership also have the import franchises?
BTW, I did read your report on Fixing GM. I found it very enlightening. A common sense approach that should have been done at least 5 years ago. It is truly a crime, not a shame, what is happening to GM. A shame would mean that no one could help it...a crime because no one bothered.

 

[Buickman]

Jim, I'm curious as to why you stay with GM. You seem to like the car business and I saw one of your posts saying that you're now leasing Toyotas and Hondas. Have you gone on to a new dealership, or does your dealership also have the import franchises?
BTW, I did read your report on Fixing GM. I found it very enlightening. A common sense approach that should have been done at least 5 years ago. It is truly a crime, not a shame, what is happening to GM. A shame

no, still at Suski where we are very profitable through fixed ops and pre-owned. I sell anything the customer wants, acting as a buyer's agent for any motor vehicle, purchase or lease, new or used. work through eleven different stores.

I stay with a GM dealer since he treats me with respect and we have a win/win relationship. also a Real Estate Broker and father of seven so some stability is good. have offers around the US but will remain in the Vehicle City for the time being. life is good, even in Flint.

 

[dindak]

Glad I got my 0% for 72 last month!

 

[TRWRacing]

if your paying for a car for more than 72 months, you don't need to be buying a new car. Hell 72 months is long ass time.

I bought my Monte Carlo for 72 months at 0% financing only because I was shooting for a $150 car payment. I got $180. I certainly can pay more but why? The loan is half over and the car only 12,500 miles. I hope to have less than 30K when it is paid off. This car will last a long time and I will give it to my son when he is in High School. He is currently 7.

Now if you are paying $500 a month for 72 months now that is certainly not a bright idea.

 

[Buickman]

GMAC doesn't have ready access to funds. you can't loan what you don't have. the dollars they do have is at such a high cost of capital that any loan is a loser. this is a sure sign that the end is near.

 

[civilzues]

I bought my Monte Carlo for 72 months at 0% financing only because I was shooting for a $150 car payment. I got $180. I certainly can pay more but why? The loan is half over and the car only 12,500 miles. I hope to have less than 30K when it is paid off. This car will last a long time and I will give it to my son when he is in High School. He is currently 7.

Now if you are paying $500 a month for 72 months now that is certainly not a bright idea.

What I meant by my comment is if your stretching your payment over 72/84 months to afford a payment. You seems to be smart by this but at the same time your not paying intrest, so it dosen't matter. People don't understand that at 84 months, you have to keep the car till it rust so your not belly under on the deal.

 

[funkypunnk]

no one finances through those fools anyway. mute point. GM and GMAC are soon belly up, who cares????

Right....Just got a new suburban and hold a GMAC loan for 2.9% over 5 years.

Buickman, are you for real? I mean, who could actually waste this much energy hating on something for this long?? Don't you get tired?

The whole world is in financial trouble right now and all of the markets are down.

The bad mortgages that were originated in this country so that people could have the American Dream, even if they didn't deserve it, have horribly impacted the global economy and all you can do is hate on GM? That's a pretty isolationist view!

You should be hating on every stupid American who took out an ARM or Interest Only mortgage not allowing for adjustments in both rate and market value in the future. You should be hating on every loan originator who ever sold one of these things.

You should be hating on every idiotic executive of any company who was willing to accept 0 down or "stated income" financing. How many write downs has GMAC or other lending institutions had to take due to "bad debt" before you realize the problem with every company right now stems from both poor business and personal decisions in this country?

 

[Bvonscott]

Thankfully there are so many other strong banks and credit unions. This is stupid on GMAC's part. The reason alot of people get longer loans is too afford them. If you make it so they can't afford them they will go buy another brand. Im sure toyota will still do 72 mos.

 

[ScottS]

if your paying for a car for more than 72 months, you don't need to be buying a new car. Hell 72 months is long ass time.

I bought my G6 on a 72. Did I need to? Nope. Is it an incentive that helped lure me to buy? Sure. Is it smart to use someone else's money for free (0% financing in my case, or below inflation in other cases)? Hell yeah. You'd be an idiot to pay cash up front when someone offer 0%.

 

[Murrow]

no one finances through those fools anyway. mute point. GM and GMAC are soon belly up, who cares????

A MUTE point??????

 

[silvergoat2k6]

I bought my Monte Carlo for 72 months at 0% financing only because I was shooting for a $150 car payment. I got $180. I certainly can pay more but why? The loan is half over and the car only 12,500 miles. I hope to have less than 30K when it is paid off. This car will last a long time and I will give it to my son when he is in High School. He is currently 7.

Now if you are paying $500 a month for 72 months now that is certainly not a bright idea.

I bought my new GTO for 0%/72 months...almost 3 years done with the loan, only have 11K miles on the car, and plan to own it for 10 years.

Getting 0% saved me $10K in finance charges...or put another way, $10K freed up that can be used for other things.

 

[vcs2600]

I bought my new GTO for 0%/72 months...almost 3 years done with the loan, only have 11K miles on the car, and plan to own it for 10 years.

Getting 0% saved me $10K in finance charges...or put another way, $10K freed up that can be used for other things.

You did the smart thing of course.

But it's completely nuts that GM ate $10K to sell someone a GTO! No wonder they're going bankrupt.

 

[Buickman]

You did the smart thing of course.

But it's completely nuts that GM ate $10K to sell someone a GTO! No wonder they're going bankrupt.

I've got so many examples of waste and mismanagement that it would make you sick to your stomach. incompetence combined with corruption.

what was that Ayn mentioned about "looters and producers"?

we've got the wrong architect designing the turnaround. there's no plan announced, only cuts and more debt. can't give earnings guidance, material weaknesses disclosed in financials, 94 % of value gone, tens of billions in losses, jobs cut, benefits yanked, communities impacted, and on and on....

it's time for Red Ink Rick to go and people better start speaking to that, repeatedly and loudly. the Board of Bystanders will support this guy. we the people can over come, but only as one powerful voice. join in and make the call. say it, type it, make yourself heard.