It didn't take long for the government bailout of GMAC to filter down to the car lot.
General Motors, which has long relied on GMAC to provide financing for many of its customers, said Tuesday it would offer zero-percent loans on a handful of vehicles and below-market rates on financing for several other models.
The announcement came the day after the federal government said it would give $5 billion in aid to GMAC, which had virtually ceased making auto loans as a crushing debt load threatened to push it into insolvency.
With the rescue money on the way, GMAC said it would loosen its credit standards so that more borrowers could qualify. Credit scores of above 620 would be accepted, less than then 700 or above that had been required. All of which is welcome news to GM dealers, who are battling the worst sales slump in the U.S. auto market since the early 1980s.
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