sebringconvGMAC to FUND CHRYSLER AUTO LOANS CHRYSLER, JEEP and DODGE dealers may finally get some much needed life support in the area of auto loans for their credit needy car buyers. Credit scores and auto loan availability have been the most significant factor challenging the car business in general and especially Chrysler Financial, the lead credit resource for most Chrysler, Jeep and Dodge dealerships around the country. Traditional banks, credit unions and auto finance arms of commercial lenders have distanced themselves from Chrysler products over the past six months as bankruptcy proceedings loomed large. GMAC to the rescue. GMAC and Chrysler Financial are both owned by Cerberus, the private-equity firm which owns Chrysler. As cash-strapped Chrysler Financial has been unable to offer much in the form of financing options, GMAC has been offering dealers lending agreements to pick-up the void left by the bankruptcy. While they have only begun the process of vetting dealers, they have yet to fund a Chrysler, Jeep or Dodge new car loan, however, you can bet when the light turns green, the dealerships will be full throttle to get their customers financed before the money runs out. In the meantime, Chase is financing the promotional interest rate incentives offered by Chrysler. Their eligability requirements have been tied to stringent guidelines requiring buyers to have over 700+ FICO AUTO SCORES, 50% debt to income and some cash down to insure the lender of a positive equity position on any Chrysler, Jeep or Dodge product. The ability to get auto financing has hampered many car buyers, especially those with minimal cash down, average FICO AUTO scores and negative equity in their trade-ins. The trade-in negative equity has come from market conditions devaluing gas-guzzler and luxury models flooding the market as job layoffs force consumers to repossess the vehicles they can no longer afford. The reluctance of the lenders to finance above wholesale book or invoice on a NEW DODGE, CHRYSLER of JEEP, has turned the negative equity of an “upside-down trade” into a cash down must. The average FICO AUTO score of 620 has added insult to injury for many potential car buyers, offered high interest rate loans which push their debt-to-income ratio close to the edge. GMAC has intimated an open-mindedness toward the 620 Auto score credit consumer. While a willingness to finance a 620 consumer at a reasonable interest rate is a welcome relief to Chrysler, Jeep and Dodge dealerships, the trade-in and cash down may still frustrate some potential buyers. Consumers need to be aware of their trade-in payoff, value position, credit score and cash availability before rushing to the car lot. There is a perception that dealerships are “giving cars away”, and while there are great deals out there, the relationship between credit, equity and cash are paramount to driving home in a new car in today’s market. —————————————————————————————– NEED AUTO FINANCE HELP or CREDIT report repair. CLICK HERE: It’s a free consult and they do the right thing by you, fast, easy, cheap. Top learn more about getting your best car deal click here: CAR DEALS Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com]]>