GM: Credit scores of 621 and 0% loans and you can ride ......

[Stinky The Clown]

Yesterday they cashed the $6B check they had to beg for. Today they change their lending rules. Now it is a credit score of 621. It had been as high as 750 at the worst of it. And some GM cars are going out the door at Zed. Zero. Nil. Nein. Nyet.

GM sez their GMAC division financed as many as 40% of all the cars they sold. They also say that the credit crunch cost them many, many thousands of sales.

I'm glad they can start moving some metal again.

I am not happy with their management. It was their management who decided to become high fliers when they bought that piece of shit, DiTech, and got into the mortgage biz. GMAC was there to finance cars. And make a few bucks along the way. But nooooooooo. They had to go for the easy money of credit default swaps.

GM's next move ought to be replacing their top management.

And by the way ...... in today's terms ........ $6B is chump change.

http://www.nytimes.com/2008/12/31/business/31auto.html?ref=your-money

[RB TexLa]

1. Hopefully people will realize the car that was good enough for them last week is still good enough

and tell them "no thanks, I'll keep my money for myself."

[Gman]

2. Now maybe people can start buying GM cars

and help save some jobs. We were talking today about going shopping for a new van tomorrow. They're damn near giving them away these days anyway.

[tammywammy]

3. My brother & SIL just got a GMC Acadia.

Very nice. :)

[deadmessengers]

4. I like the warranty

My cousin forwarded me a link with the warranty terms on new Chevys - 100k powertrain warranties really blunts the "GM makes unreliable cars" argument, that's for damn sure (and I have been one of the people making that argument around here).

They must be modeling this after the Korean makers (Hyundai and Kia) who did the same thing to combat their own well-deserved reputation for unreliability. They cleaned up their acts, and put their money where their mouths were. Now, they're among the best in the business - hopefully GM will follow suit.

[oldnslo]

6. If they do fold in two or three years, that warranty won't be worth

a damned cent. They have to offer it just to give the illusion of parity with furrin manufacturers. But of course, maybe they will get bailed again, or maybe they'll actually come out of their funk, or maybe, or maybe, or maybe.

[MsTryska]

5. OK question...

Isn't this essentially the same sort of financing that brought us the mortgage meltdown?

Getting people into product they can't really afford, and worry about the fallout later?


I understand GM needs to move inventory - and this is a quick and dirty way to do it, but umm...?

[oldnslo]

7. I'm almost 70--so if they eliminate interest and get to the point

Where they don't demand payment for about 5 years, I could possibly ride free and let them have the car back at my funeral.....

[KoKo]

8. Good Point!

:eyes: