Automotive News
GMAC is getting back into subprime lending, agreeing to extend credit to retail customers with credit scores below 620 -- on a limited basis. These customers still will need to qualify for financing, GMAC said in its announcement. It did not specify those requirements. >snip<
In December GMAC received a $6 billion government bailout that required GM and the private equity firm Cerberus Capital Management LP to slash their stakes in GMAC. GM's stake was 49 percent and Cerberus' 51 percent.
GMAC, now a bank holding company with operations in North America, South America, Europe and the Asia-Pacific region, had $189 billion in assets on Dec. 31.
GMAC, now a bank holding company with operations in North America, South America, Europe and the Asia-Pacific region, had $189 billion in assets on Dec. 31.
The Back Story
January 7, 2009
GMAC Closes Subprime Car Lending Unit
Dealers left looking for new source of loans for customers with weak credit.
Dealers left looking for new source of loans for customers with weak credit.
GMAC has confirmed that it is closing its subprime lending subsidiary, Nuvell Financial Services , which mostly wrote loans for customers with weak credit profiles.
Last summer, GMAC slashed its vehicle leasing business to almost nothing but raising its rates markedly.
Last summer, GMAC slashed its vehicle leasing business to almost nothing but raising its rates markedly.
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