The Benefits of a GMAC Car Loan

If you are purchasing a General Motors vehicle, then a GMAC car loan option may be in your favor. The General Motors Acceptance Corporation (GMAC) is a very large financial company that provides home loans, car loans and other forms of lending. Despite its wide range of loans, GMAC still specializes in making loans for those who wish to purchase a GM manufactured automobile at a low interest rate.

Low Interest Rates

The main benefit to taking a dealer loan for your vehicle as opposed to a bank loan is the lower interest rate. The dealer has an incentive to reduce the cost of your loan so you will purchase a car from them. Additionally, this means they will earn two sources of income from one single contract with you. As such, the dealer will often drop interest rates in order to lure you away from other car dealers and other lenders. While you may see less flexible terms on the loan, you will almost always see a lower financing cost or discounts if you are taking out a GMAC car loan instead of approaching an independent lender.

Streamlined Financing

When you go into a General Motors qualified dealership, you can handle the entire process of buying the car and sourcing the loan all in one location. Perhaps more than any other benefit, borrowers like this streamlined process for financing the car. If you are trading in a car at the dealership, you can use this trade in as the down payment for your new loan. The dealer will even contact your previous lender to settle any remaining debt you owe if you have not fully paid off your previous car. All of these conveniences make working with GMAC the easiest option when you purchase a car made by their company.

Wide Range of Acceptance Standards

While you will have to be credit worthy in order to secure a loan with GMAC, the company has a wide range of standards. Acceptable credit standards are more inclusive than most traditional lenders. In this way, GMAC has an added incentive to provide you the loan outside of the interest rate alone. However, you will see a much higher monthly payment in this situation. Those individuals who do not have a long debt history but have high incomes will benefit the most from this flexible acceptance policy.

Flexible Options

Most loans from manufacturers such as GMAC do have less flexible terms in the long run. Do not confuse less flexible terms with a lack of options. Basically, you will be able to choose from a wide range of payment plans on the front end. You may elect quarterly payments instead of monthly, adjustable interest rates, short loans, long loans and a number of other provisions. Once you elect the loan, however, you should know GMAC generally builds in disincentives for modifying down the line. This means it is important to consider all of the options available and elect the one that will work in the long run as well as in the short term.

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