General Motors hand in hand with GMAC has announced that they have come to the end of the line of their used vehicle incentive program. As of November 3rd the program will be null and void.
Under the program, selected models of GM received 3.9% interest loan terms for up to 60 months. The 4.9% incentive for higher end vehicles such as the GMC Yukon, Yukon XL, Envoy, Chevrolet TrailBlazer, Tahoe and Suburban were also scrapped.
GM claims it has had troubles raising capital in the past couple of months and was losing money on the program. Dealers are furious as the used car department provided much needed margins to their already failing new car sales departments.
GMAC also announced that it was scaling back it’s lending practices in Europe, while put a stop to lending in 7 European nations altogether. Last month, GMAC has announced that it will not be lending to individuals with a credit score less then 700, roughly 40% of all applicants.
GMAC is partially owned by Cerberus Capital and part by General Motors. Both of which have become under fire recently as the automotive sector sunk to new lows in terms of sales.