Posts Tagged: ‘GMAC’

Car finance becoming increasingly scarce in Australia

January 21, 2015 Posted by admin

The world economic global crisis has had a huge and negative impact on the car finance industry in Australia because the major suppliers of car finance here have recently withdrawn from the car finance market. GE Money and GMAC who are believed to have had at least 60% of the car finance market in Australia have suddenly withdrawn from this market. While GE Money has continued to play in the credit card market where it has been increasing interest rates in Australia (as have many other lenders) in October it announced that it would no longer fund car finance or their third party mortgage distribution channels.

GMAC also announced that it was withdrawing from car finance because the cost of funds was too high or funds for car finance were simply not available. Because of the devastation caused to the finance sector as a result of the irresponsible sub-prime lending in the USA, investors who would normally buy securitised home loans and car finance loans for a good return on their money are now afraid that they may lose money on any such investment. As a result those who are willing to invest in car finance loans or home loans are seeking a much higher rate of return because of the perceived increase in risk. GMAC has advised the market that their cost of funding car finance is now too high and until car finance rates come down they are out of the market. GE Money appears to have withdrawn from the car finance market permanently in that it has put off a large number of staff in both Australia and New Zealand and has announced to the market that it is exiting these areas of its business.

The new car industry will be feeling the ramifications of these decisions in that without readily available car finance, dealerships will find it difficult to reach new car sales targets. Unfortunately the Australian public, or at least those who have been buying new cars over the past 20 years have become used to being able to get 100% car finance on any new car purchase. New car finance is normally structured to include the car finance amount plus a residual or balloon amount which is paid by the borrower when he or she sells his or her car in 3 or 5 years time. The borrower makes monthly repayments which are enough to repay the car finance amount over the 5 year period and when he sells the car the price he achieves is generally sufficient to repay the balloon or residual amount.

It is likely that when buying a new car in 2009 you may well need to come up with a saved deposit. Not something people who have sought car finance in the past have had to worry about. The car finance will still include the car finance amount plus a residual but the general consensus is that if you are in the market for a new car then make sure you have some savings because the car finance is unlikely to be sufficient for you to complete the acquisition.

retail finance

May 27, 2014 Posted by admin

If financing a car is normally the only option of acquire, then why not create your transaction as fast and simple as possible? GMAC tries hard for making your transition to auto ownership as simple as it can be with GMAC Auto Financial products. Want to know a lot more? Read on!

Who is actually GMAC?

GMAC Financial Expertise is “a global, diversified financial services company. ” Being subsidiary of General Applications Corporation, GMAC originally functioned as being a financial assistance program to get auto dealers who wanted a much better selection of automobiles on the lots but did can’t you create the cash to pay more for more than just just a few. Over time, GMAC’s money options expanded beyond serving the dealers and went into customer financing. And today we use a new financing system of which assists prospective auto owners in worries now that they pays for conveniently in ones own time.

As the ages evolve, so does GMAC, and today they provide the widest number of auto financing options open to the public. While GMAC offers a number of packages for all elements of consumerism, including businesses together with brokers, in this article we will concentrate on personal loans for any everyday consumer.

Personal GMAC Auto Loans

The two varieties of personal loans we will focus on on this page are GMAC Auto Personal loans for Vehicle Financing and GMAC Car finance for Vehicle Leasing.

Vehicle financing is probably the original ways that GMAC began the “rent to own” means of purchasing a vehicle. Within umbrella of the vehicle financing process is normal retail financing and Shrewd Buy. Traditional retail financing is what most people will expect when going to get a car. This style of financing is described as “an installment sale transaction between you and your dealer whereby you admit pay the amount funded, plus an agreed when finance charge, over some time. ”

GMAC gives its prospective buyers guidelines to ascertain if traditional retail financing is a good choice for them. They explain that should you plan to drive your car for some years and you consistently drive over 15, 000 miles yearly, or even if you’re planning to alter the motor vehicle (change the paint colouring, add new wheels, modification the interior), and just remember, if the car you’re money is the one you need to own, then traditional retail financing is just about the right choice for people. Most people in nowadays go directly to GMAC so that you can finance their car; having said that, you are able to check your bank or credit union on top of that.

Smart Buy is another type of vehicle leasing available through GMAC Car finance. Smart Buy is as well a program that will let you eventually own your automobile, however monthly payments can be lower than those of traditional retail financing. Exactly how is this possible? Because GMAC has a fraction of each payment per month and moves them all to your end of the commitment, combining them into one lump sum which is to be paid in something labeled a “balloon payment. ” The advantages of the Smart Buy financing option is that if you don’t have or don’t need to pay the balloon payment in the end of your contract, you may simply return the vehicle and pay an inferior disposal fee, which comes with mileage and excess have on charges.