GMAC Financial Services on Tuesday said it had implemented “a more conservative purchase policy” for consumer auto financing in the US “as a result of the lack of stability in the global capital and credit markets”.
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The financier said its changes included limiting purchases to contracts with a credit score of 700 or above and it will also restrict contracts with higher advance rates and longer terms.
Last week, GMAC also increased by 75 basis points the rate it charges dealers for providing non-incentivised consumer auto financing.
“These changes in pricing and underwriting are related to the current market environment, which has reduced access to funds and increased the cost of funds,” GMAC said in a statement.
“The company currently expects these actions to remain in place until the credit markets stabilise and accessibility improves.”
GMAC’s wholesale auto finance business is unchanged, however, it added.
