Houston Cars

Effectively, anyway.  From today forward, no one will get a GMAC auto loan if their credit score is under 700.  Furthermore, GMAC will no longer write auto loans above invoice.  As a final blow to GM dealers, GMAC will tighten up their standards further for long terms.  In other words, GMAC will pretty much stop writing auto loans altogether. 

After all, how many GM customers actually have a credit score over 700?  I’d bet they’re in the vast minority.  And how many GM customers do you think have *gasp* negative equity?  How about all of them?  With other banks tightening their standards, you’d think GMAC would either hold the line, or step up and take the risk to keep their auto sales business afloat.  That’s not the case though, and this is just the next step towards a bankrupt GM.  Perhaps it’s even the last step.