Need to have a 700+ credit score to get a GM! - DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat
 
LinkBack Thread Tools Rate Thread Display Modes
post #1 of 13 (permalink) Old 10-14-2008, 03:31 PM Thread Starter

 
Join Date: Oct 2008
Posts: 336
Feedback: 0 / 0%
                   
Post Need to have a 700+ credit score to get a GM!

In a totally absurd move, GMAC the financing arm of General Motors, or Cerberus Capital announced that moving forward applicants will have to have a credit score (FICO) of over 700 to qualify for a loan.

Also, loans will only be extended to 60 months total. No more 72 month, 84 month or 96 month loans will be taken.

GMAC is already expecting to lose 25% of the business of new car loans as a result of this move. Cerberus, which owns 51% of GMAC is most likely applauding this ruling, as it wants to protect it’s future revenues. GM on the otherhand is most likely going into talks with other finance companies to remedy the situation and find proper lending solutions for it’s dealers and end customers.

Another chapter in the automotive world is being written, where the beancounters are winning over common sense. It’s no use building cars if people can’t afford them. Someday even people in Detroit will understand these fundamentals, but until then their stock will be valued accordingly.



More...
Auto Reporter is offline  
Sponsored Links
Advertisement
 
post #2 of 13 (permalink) Old 10-14-2008, 10:26 PM
Intrepid Modder
 
HiTechRedNeck's Avatar
 
Join Date: Apr 2008
Location: Visalia, CA, USA
Posts: 430
Feedback: 3 / 100%
                     
the entire loan industry is going to do that... I read an article that said it was going to get tougher to get any type of without a high than average score...

the current economy is because banks were letting people get 2nds & 3rds when they were barely paying 1sts... they are going to stop that... I say great! should've done it sooner...

if the businesses get smart, they will start making things affordable in stead of "pricey with payments" and then we can all learn to live within our means...

in my own business, customers that have been paying cash for years all of a sudden want me to give credit for 30-60 days and take credit cards... that's not going to happen... policy like that doesn't pay my bills... my gross sales this year will be over 110k... steady rise from 65k 3yrs ago... all cash... my business owes nothing to anyone... I have one credit card in my name and another in the business and if I wanted to pay them off I could write the check without sweating it... right now, the only money I personally owe anyone is my car... <4k left... and I plan to build a house for my kids and I after the years turn... I'm paying 250k toward building a house that will be 2700sqft on a 13.4ksqft lot... if I can do it, so can everyone else... it's not that hard to save... just nobody like to... it doesn't let them have their "toys"...

Last edited by HiTechRedNeck; 10-14-2008 at 10:34 PM.
HiTechRedNeck is offline  
post #3 of 13 (permalink) Old 10-14-2008, 11:15 PM
Intrepid Fan
 
Join Date: Mar 2007
Location: Casselberry, FL
Posts: 230
Feedback: 1 / 100%
 
No surprise here. We will see this happening a lot for all kind of financing, not only cars.

GM will see a decline on sales, when the sale depends on immediate finance arranged at the dealer.

Alternatives like FCUs will also demand higher scores, trying to protect themselves.

It's the sign of the times.
adam_hawk is offline  
Sponsored Links
Advertisement
 
post #4 of 13 (permalink) Old 10-14-2008, 11:23 PM
Intrepid Pro
 
Fearless 2000's Avatar
 
Join Date: Jul 2006
Location: CHICAGO
Posts: 3,963
Feedback: 2 / 100%
                     
Good!! We can't be giving loans to "poor ass bastards" that can't pay off the loan.

Econ 101 my friends....
Fearless 2000 is offline  
post #5 of 13 (permalink) Old 10-15-2008, 02:10 AM
Intrepid Pro
 
MegaTrep's Avatar
 
Join Date: May 2007
Location: M'waukee, WI
Posts: 2,792
Feedback: 2 / 100%
                     
Quote:
Originally Posted by Fearless 2000 View Post
Good!! We can't be giving loans to "poor ass bastards" that can't pay off the loan.

Econ 101 my friends....
Wasn't it your favorite all time president that kept pushing and pushing for Congress to pass the bailout of banks (that went under) that loaned money to these "poor ass bastards"?
MegaTrep is offline  
post #6 of 13 (permalink) Old 10-15-2008, 11:03 AM
Intrepid Pro
 
Join Date: Aug 2001
Location: Hugo . Minnesota
Posts: 3,207
Feedback: 0 / 0%
                     
They will lose over 50% sales. Buddy of mine is salesman for a local Ford dealer. He said about 7 out of 10 people have a credit score below 700 most are in the 600 to 700 range. Which is in the good range and 700 to 800 are above that and 800+ range you can get million dollar car.
SPOOK R/T is offline  
post #7 of 13 (permalink) Old 10-15-2008, 01:01 PM
Intrepid Pro
 
Avenger's Avatar
 
Join Date: Sep 2001
Location: Kitchener, Ontario
Posts: 11,960
Feedback: 10 / 100%
                     
WOW........and I just assumed 700 was a LOW credit score??? Mine's up near 900 and I've never taken out a loan?



Avenger is offline  
post #8 of 13 (permalink) Old 10-15-2008, 01:32 PM
Intrepid Modder
 
HiTechRedNeck's Avatar
 
Join Date: Apr 2008
Location: Visalia, CA, USA
Posts: 430
Feedback: 3 / 100%
                     
Quote:
Originally Posted by Avenger View Post
WOW........and I just assumed 700 was a LOW credit score??? Mine's up near 900 and I've never taken out a loan?
if you want to really know what low is... I know a guy, nice guy, who has a loan officer for a friend... they sat together one day and planned the purchase of a new home for this guy and his family... this guy makes maybe 50k/yr and had some shaky credit history... I think his score was 500-600 (if memory serves)... he qualified for this new 250k home a year and a half ago... shortly after moving in he got a nice letter in the mail qualifying him for an equity line of credit, which he accepted...over the course of a year, he and his wife have newer cars, nicer clothes, and he had a set of rims and tires that were worth more than what I would've spent on a used car...

where are these fine folks today?

he worked for a local truss company that went under about 5 months ago... he was foreclosed on 2 months ago... he and his wife have no vehicles currently... and I haven't see him or his family in about 3wks... I have no idea where he is now...

I also knew the loan officer, who is also out of work when his branch was closed... he told me that it was common practice to fudge the applications and make the loan...

the sum of all the problems we currently face, is because everyone in situations like this one, were thinking of how much money they HAD (or could have) rather than how much they HAVE... we taxpayers just guaranteed a $700,000,000,000.00 check to pay the salaries of those who encouraged this behavior... something needed to be done, YES... was it the best option, NO (IMO)... did we have a choice, NO... simply the lesser of two evils...

I would hope that anyone reading this, would think twice about using credit in the future...

just my .02
HiTechRedNeck is offline  
post #9 of 13 (permalink) Old 10-15-2008, 02:55 PM
Intrepid Modder
 
blue_02's Avatar
 
Join Date: Aug 2008
Location: bourbonnais, il
Posts: 308
Feedback: 0 / 0%
                     
i think its more absurd to keep selling cars to people who can't afford them...there are way too many people that expect to be able to buy anything they want and the truth is you can't do that.
blue_02 is offline  
post #10 of 13 (permalink) Old 10-15-2008, 04:05 PM
Intrepid Modder
 
HiTechRedNeck's Avatar
 
Join Date: Apr 2008
Location: Visalia, CA, USA
Posts: 430
Feedback: 3 / 100%
                     
Quote:
Originally Posted by blue_02 View Post
i think its more absurd to keep selling cars to people who can't afford them...there are way too many people that expect to be able to buy anything they want and the truth is you can't do that.
x2...

72+ months... yes, that is crazy... I can't imagine paying for a car for 96mo...
HiTechRedNeck is offline  
post #11 of 13 (permalink) Old 10-15-2008, 06:21 PM
Intrepid Pro
 
Join Date: Aug 2001
Location: Hugo . Minnesota
Posts: 3,207
Feedback: 0 / 0%
                     
I did not know they even had 96 month car loans. When i bought my new town-house 2 years ago. They tried to get me to buy a much higher home. Yea a disabled Vet can get a $380,000 town house. (No problem). Nope i only paid $184,900 for the one i have now. I did not want to take the chance.If something happened to my wife. We could not pay the bill's. So my income pays for the house and both new cars. Hers only pays for the food,gas bill, savings, phone ect...

Mine 2012 Black Challenger SXT. Hers 2005 Red V-6 Mustang, the Son 1997 Red Plymouth Breeze
SPOOK R/T is offline  
post #12 of 13 (permalink) Old 10-15-2008, 10:04 PM
 
Join Date: Mar 2008
Posts: 98
Feedback: 0 / 0%
 
LOL...IVE NEVER HAD CREDIT....SO WHASS MY CREDIT SCORE LIKE WOULD MY 1ST CREDIT BE CONSIDERED TOP NOTCH UNTIL I MESS IT UP (WORSE CASE SCENARIO)...OR DO YOU START OFF AT THE bottom of the barrell and have to build??....

sorry bout typing in caps...lol....its a hard habit to break...
BOSS B is offline  
post #13 of 13 (permalink) Old 10-16-2008, 12:14 AM
 
Join Date: Feb 2008
Posts: 192
Feedback: 0 / 0%
                     
Nope you start at the bottom its gonna be hard for you to even get a loan not having any credit history. Bad credit history is better than no credit history for a loan maker.
Nheuer is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

Member names may only be composed of alpha-numeric characters. (A-Z and 0-9)

!!ATTENTION ADVERTISERS!! If you intend on advertising anything on this forum, whatsoever, you are required to first contact us here . Additionaly, we do NOT allow BUSINESS NAMES unless you are an Authorized Vendor. If you own a business, and want to do sales on this site via posting or private message, you will need to follow the rules. Shops, Stores, Distributors, Group Buys without being authorized will see your account terminated.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes Rate This Thread
Linear Mode Linear Mode
Rate This Thread:



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome