The Federal Reserve offered GMAC some relief this week, as it announced that it would buy a $5 billion stake in the lender and offer $1 billion more to GM. GMAC in turn has announced that it will lower its lending restrictions, now offering financing to retail buyers with a credit score of 620 or higher, down from the 700 it was requiring previously. Now, to help spur sales, GMAC will also offer reduced rate financing for buyers.
In a press release today, GM detailed its new low-financing plan. The reduced rates are available to qualified buyers through January 5, 2009 for most 2008 and a few 2009 models. GM is offering 0 percent APR for up to 60 months for the 2008 Chevrolet Trailblazer, 2008 GMC Envoy, and Saab 9-3, 9-5 and 9-7X. For 2009 models, GM is offered 3.9 percent APR for up to 60 months for the Chevrolet Cobalt, Pontiac G5, and Cadillac CTS.
“We’re very excited to offer this reduced rate financing through GMAC to encourage our customers to get back into the game,” said Mark LaNeve, vice president of GM North America Vehicle Sales, Service and Marketing. “This enables even more qualified customers to finance through GMAC at their local GM dealership, and provides additional financing capacity with conventional and reduced rate APRs for our dealers to make sales. With GM’s Financing That Fits, and the Red Tag Sale now underway that offers supplier pricing, customers have an opportunity to get a variety of extremely attractive offers through the end of the year.”