GMAC’s $5 Billion Helps Used Car Buyers

What would you do with $5 billion? Well, if you’re GMAC and just received that much, you lower your credit standards and start doling out more loans. Now, they’re not sub-prime by any stretch of the imagination, but more people are going to qualify for new car loans than have in the last quarter.

That’s great news for the used car market – and should help keep prices steady or drive them down. A larger percentage of people intending to buy a vehicle were planning to buy used, largely because of tight credit. Now that it is no longer an issue, there will be less folks buying used cars. Dealers are going to have to offer even better deals to move product.

By the way, Happy New Year!