Arranging an auto loan with General Motors is a form of what is known as dealership financing, and GM finance rates will apply in the same way as interest rates are structured into a loan agreement by a bank or a credit union, when you’re the sort of financial lending institution.
GM finance rates will vary depending upon the individual applying for a loan and their credit score and credit rating as determined by the information provided on the petition form.
People sometimes assume that GM finance rates are more favourable to the individual if they are buying a car or truck from General Motors at the same time. There is no evidence to support this and it is more likely to be wishful thinking than based in actual fact or experience, although there may be some anecdotal evidence available that does lead to this conclusion.
GM Finance Rates
On the whole, General Motors will treat each customer same as any bank or lending institution would in terms of their assessment of their creditworthiness, and whether or not they want to lend the money and if so on what terms and conditions.
It is not in General Motors interest to lend money or saw a car to an individual who cannot afford to pay it back for a whole variety of fairly obvious reasons.
GM finance rates will be worked out and offered to the individual once they have applied for credit, either through pre-approval or through a GM dealership once the sale of the car or truck has begun.
It is fairly obvious that it is attractive to a number of people to be able to arrange the finance at the same time as buying a new car or truck. However it is worth separating out the two processes and treating them as separate issues, even if they are both being done at the same time.
For this reason, it is always a good idea to get separate quotations from alternative sources of finance and to be able to compare them on a like-for-like basis. This means they should have similar sizes of down payment and similar length of time loan periods.
GM finance rates will apply to personal secured auto loans, but it should be remembered that there is a fair chance these can be negotiated.
People often get drawn into the excitement of buying a new car and your sight of the fact actually any central savings they might make on the sale price of the vehicle can easily be lost in excess charges that they pay through not properly negotiating the finance side of the arrangement. Both areas of the transaction can be treated as being open to negotiation and should be able to offer some degree of benefit to the consumer.