GMAC:Welcomes Low Credit Scores Again, Stays Away From Leasing

GM's lending arm, GMAC, has agreed to provide customers financing with less than stellar credit again, after walking away from the business last October. On a limited basis the lender will now agree to provide customers with a credit (FICO) score of 620 and below financing, which is also known as the subprime market, as long as they meet GMAC's required stipulations. Although they're back in the business of expanding their financing, their is know word yet on when or if they'll get back into the leasing business again.

The reason GM and Ford are offering new programs to attract customers is due to the fact that their new-car sales were off over 40 percent in March, when compared to the same period last year. Hopefully, this measure along with the car-buying assurance programs for consumers who may be fearful of losing their jobs this will encourage consumers to get back into the market again. There is no word yet, if Chrysler will get back into the business of recruiting subprime customers or offering leasing again.