What Are GM Loans?
GM loans tends to be a slang expression for what is more formally called dealership financing in respect of General Motors.
Like a lot of manufacturers, General Motors makes finance available to selected customers in order for them to buy a new or used car or truck through the dealership network, and also to arrange the option of leasing a vehicle instead if that is a more attractive option for the customer.
Some people think that if they arrange the finance to General Motors at the same time as buying a car or truck directly they are likely to get more profitable terms regarding the credit finance arrangement.
This is actually unlikely to be true, and it is always a good idea when arranging any type of finance or credit to obtain a quotation from, in this case, GM financial, and then obtain alternative quotations from other lenders such as a bank or a credit union and be willing to compare them on a like-for-like basis.
GM financial will act as the credit arm of General Motors, and will carry out background checks on people applying for credit or loans.
A full credit history will be taken by way of a navigation form which will then be used as basis for determining the individual’s credit score, and GM financial will decide whether or not to lend the individual that money and if so on what terms and conditions.
It is often a good idea to separate out the financing of the vehicle from the sale, even if both are being done with General Motors. It is really a boundary issue.
There is normally, depending upon the individual’s credit score, a fair degree of scope to build negotiate both the finance and the sale of the vehicle. With regard to the finance the vocational areas normally relates to the size of the down payment, the interest rate charged and how long the contract to run for. It is also worth checking what penalty charges if any they may be if the finance arrangement is terminated early.
GM loans are normally secured against the car or truck that the individual is buying from General Motors, meaning that if the individual defaults on the loan cannot get back General Motors will repossess the car or truck and use its value as a way of offsetting or mitigating that exposure in terms of the debt of the individual.