wiegie Posted October 14, 2008 Share Posted October 14, 2008 GMAC Tightens the Auto-Finance ScrewsIn a letter to GM car dealers, the financing arm says only those shoppers with credit scores above 700 will be approved for loans http://www.businessweek.com/bwdaily/dnflas...opStories_ssi_5 Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted October 14, 2008 Share Posted October 14, 2008 (edited) So you're saying the market for moderately priced used cars converted to electric will be strong? All I need now is some venture capital! Oh wait... right. Actually, I was pretty thrilled yesterday to learn that the startup I work for is cash-funded through the end of next year without any new credit. I really don't want to get laid off at the bottom of this hole and start trying to find work then. Edited October 14, 2008 by AtomicCEO Quote Link to comment Share on other sites More sharing options...
SuperCharger Posted October 14, 2008 Share Posted October 14, 2008 Only loaning money to people with the history of repaying it. Genius! Quote Link to comment Share on other sites More sharing options...
muck Posted October 14, 2008 Share Posted October 14, 2008 A 700 credit score is a pretty steep hurdle to sell cars... Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 14, 2008 Share Posted October 14, 2008 A 700 credit score is a pretty steep hurdle to sell cars... Indeed. Some buyers with sub-700 scores (but with decent credit) might try their bank and pay the dealer cash for a better deal. Quote Link to comment Share on other sites More sharing options...
westvirginia Posted October 14, 2008 Share Posted October 14, 2008 A 700 credit score is a pretty steep hurdle to sell cars... Yeah, man. Especially most GM products. I sold Ford when I did, but probably over 50% of people I saw in that market were below 700. I would think 650 or so. Quote Link to comment Share on other sites More sharing options...
tonorator Posted October 14, 2008 Share Posted October 14, 2008 i don't know the right limits to set but i'm all for getting them to the right levels and making sure they are tough enough. if this is how it spills over, i'm all for it. Quote Link to comment Share on other sites More sharing options...
SuperCharger Posted October 14, 2008 Share Posted October 14, 2008 The lower a finacial institution is willing to go on the credit ratings the more risk they assume. In the end it's their desicion and it's one they have to live with. 700 is not a hard rating to achieve. Quote Link to comment Share on other sites More sharing options...
muck Posted October 14, 2008 Share Posted October 14, 2008 GM, Ford and Chrysler are not auto manufacturers. They are finance companies that make stuff so that they have something to finance. By raising the standards on who they can sell stuff to, they'll sell less of it and make less on what they sell. At some point, the degradation of their top line (i.e., revenue) will have an enormous negative impact on the union workers around the country / world. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 14, 2008 Share Posted October 14, 2008 GM, Ford and Chrysler are not auto manufacturers. They are finance companies that make stuff so that they have something to finance. By raising the standards on who they can sell stuff to, they'll sell less of it and make less on what they sell. At some point, the degradation of their top line (i.e., revenue) will have an enormous negative impact on the union workers around the country / world. If the big three fold, is there a prospect of some American entrepreneur taking their place at least partially with new streamlined auto manufacturing capability a la Toyota's modern plants or will foreign car makers simply fill the void? Quote Link to comment Share on other sites More sharing options...
tonorator Posted October 14, 2008 Share Posted October 14, 2008 GM, Ford and Chrysler are not auto manufacturers. They are finance companies that make stuff so that they have something to finance. By raising the standards on who they can sell stuff to, they'll sell less of it and make less on what they sell. At some point, the degradation of their top line (i.e., revenue) will have an enormous negative impact on the union workers around the country / world. if the standards are reasonable and they are still limited, then i would think the negative impact is inevitable. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted October 14, 2008 Share Posted October 14, 2008 Yeah, man. Especially most GM products. I sold Ford when I did, but probably over 50% of people I saw in that market were below 700. I would think 650 or so. There's also the problem that any GM product probably isn't worth what is owed on it from the time it leaves the lot until the time you pay it off. If their cars had a decent resale value, I bet they wouldn't mind repo-ing it from the hoi polloi quite so much. Quote Link to comment Share on other sites More sharing options...
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