A Look at the "New" GMAC From the Sharp End

Robert Farago
by Robert Farago

The federal government buys GMAC and the MSM says huzzah! The credit taps are slowly starting to reopen! Meanwhile, on the front lines, the same scum-bags who helped cause this economic crisis by pushing people into cars (and houses) they couldn’t afford are busy reinventing the same wheel that came off before. In other words, predatory lending is back (did it ever leave?). And it’s bad! The Orange County Register lifts up the rock to reveals the slugs underneath (now with federal backing). In Q & A format, no less.

Q: What is the most important thing for customers to know going in?

A: ‘It’s not score-driven. The minimum they are saying is 621, but you can have a bad 621 and a good 621,’ [finance director at Tustin Buick Pontiac GMC Hummer Jane] Griffin, said about credit scores. ‘It doesn’t mean that ‘poof,’ if you have 621 you’re approved. But if you’re not a credit criminal or skip risk, most likely you will be approved.'”


How… reassuring. Ready for more? You know you are.

“Q: What other kind of requirements are you looking for in a buyer seeking financing?

A: ‘You just have to have a real person with a real job, and the banks will finance it,’ said Jeff Garcia, finance director at Simpson Buick Pontiac GMC in Buena Park. ‘Also, have a 10 to 20 percent down payment.'”

Q: GMAC immediately said it would loosen financing standards after the deal. Did customers just as quickly come to the car lot?

A: ‘(On Tuesday) we had a frenzy of customers. Unfortunately we didn’t do much (in sales),’ Griffin said. ‘People were coming in wanting to buy a $50,000 with $300 a month.’

“Q: Anything else customers should know as they head to dealerships?


A: ‘Come in, work with us and we will work with you, but don’t come in having unreasonable expectations, like trying to roll in thousands of dollars from your previous loan,’ Griffin says. ‘Everyone is financeable. Everyone,’ Garcia adds. ‘You just have to be on the right unit. Don’t be 25 and try to buy a $50,000 car.'”

Robert Farago
Robert Farago

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  • TexN TexN on Jan 03, 2009

    I'm reminded of the story of the guy who walks into a financial planner's office and says, "I have $100,000 and I want to retire now with an annual income of $50,000." The planner replies, "The good news is that I have a plan that will work for you. The bad news is that you have to die in two years."

  • Ralph ShpoilShport Ralph ShpoilShport on Jan 03, 2009

    @ davey49: You are correct about if you keep the car forever it's not a factor. However, in light of todays finacial situation, unless one is very comfortable about their situation long term buyers are much more wary about making that plunge. Now, the difference between one car losing 30% off the lot and another 10% makes a big difference. The other point is that it is YOUR money that goes away immediately, with the banks interest more likely recoverable.

  • EBFlex China can F right off.
  • MrIcky And tbh, this is why I don't mind a little subsidization of our battery industry. If the American or at least free trade companies don't get some sort of good start, they'll never be able to float long enough to become competitive.
  • SCE to AUX Does the WTO have any teeth? Seems like countries just flail it at each other like a soft rubber stick for internal political purposes.
  • Peter You know we’ve entered the age of self driving vehicles When KIAs go from being stolen to rolling away by themselves.
  • Analoggrotto TTAC is full of drug addicts with short memories. Just beside this article is another very beautiful article about how the EV9 was internationally voted by a renowned board of automotive experts who are no doubt highly educated, wealthy and affluent; the best vehicle in entire world. That's planet earth for you numbskulls. Let me repeat: the best vehicle in the world is the Kia EV9. Voted, and sealed, and if you try to deny it Fanny Willis is ready to prosecute you; but she will send her boyfriend instead because she is busy.
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