GMAC Auto Finance /
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The information on this page is simply my opinion based on my experiences with GMAC Financial and may or may not be similar to what you as a customer experience with them.
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Many of the requirements for GMAC auto loans have changed and not too long ago a customer would need a 621 credit score or higher to even be considered.
Fortunately, that was through the old GMAC Auto Finance and their new structure as Ally Financial has changed that to incorporate a more full spectrum lending program.
As is the case with most auto lenders, the better the credit and the more money down always helps, but I've been getting even slightly edgy customers approved with little to no money down.
From a finance managers perspective, I was never a really big fan of GMAC Auto Finance (even before this whole economic crisis), because of the way finance was paid, but now everything is starting to even out and they are one of my first sources.
Thanks for switching to Ally Financial...Big thumbs up GM!
The way things are structured today is that the 621 credit score or higher will get you into their prime tiers, but credit scores below that are considered in their non-prime program. Ally auto loan rates are still very competitive in this arena as well.
As with all lenders however, your FICO score alone doesn't guarantee an approval with GMAC Auto Finance, or even the new Ally Financial lending model, and other restrictions will apply, i.e. overall credit history, loan structure, etc.
Used Vehicle Financing
As for GMAC used vehicle financing, they stay very competitive up to about 5 year old vehicles. It's not so much that the rates get bad at that point, but they look for shorter terms and 72 month auto loans are off the table.
Even for their non-prime rates for credit scores below 620 they still offer single digit auto loan rates for customers in their top non-prime tiers. Much better than it used to be.
The Risk Opportunity Center - The ROC
GMAC Auto Finance used to have a division they called the ROC (risk opportunity center) to handle their non-prime applications, but now it seems to be handled by the same buyer that looks at my prime contracts.
On top of this, GM recently acquired Americredit/GM Financial, which is a very large subprime lender and this has given the all new GMAC Auto Finance a truly full spectrum lending program.
When a dealer is sending a deal to them, they are looking for a max advance of 140%, including TT&L and approved back end products:
The 140% is the loan to value based on a new cars invoice, Kelley blue book wholesale or NADA wholesale, if used.
To qualify for this level of advance, you'll need to have a solid credit rating, or if you are up there, but not all the way there, a larger down payment can help to buy your way into Ally Financials top credit tier.
An example, if a vehicle had a $10,000 wholesale blue book value, then GMAC would be willing to loan $14,000 (140%) including TT&L and the extras from above.
If you check out the GMAC Auto Finance (now Ally Auto Loans) website you'll see that you can apply for a loan online and once approved you'd simply take your approval certificate to any local participating dealer of your choice.
Even if you're not approved it's well worth to head over to the dealer as they may be able to negotiate on your behalf and/or explain more clearly what it takes to turn that no into a YES!
If you're looking for some quick contact information, here you go:
When I first wrote this page a couple of years ago it read as though I was slamming GMAC Auto Finance, but what can I say, they weren't very good than.
I don't know if this was due to GMAC Auto Finance not being wholly owned by General Motors (The majority of GMAC is owned by a consortium of private investors), they were in bed with the government, the economy is terrible, or if it was a mix of all of those.
It appeared to me than that the only reason one would have considered GMAC Financial for their next auto loan was if they were seeking a special finance rate, such as 0%, 1.9%, 2.9%, etc.
Now that they've become Ally Financial their auto loans program has greatly improved and I decided to rewrite this to more positively reflect the way I feel about their loan services now.
Ally auto loans are very competitive and they actually want to loan money. In some cases, they'll even step out on limb a bit and take a shot on someone if it helps them to sell a new car.
Ultimately, between Ally Financial and Americredit/GM Financial most customers will find that an approval is fairly easy to come by.
You can access the new GMAC Auto Finance and Financial Services website for more information or to apply online.
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