How to Get GM Financial Auto Loan

A car loan from General Motors, often referred to as a GM financial auto loan, is essentially a secured personal loan offered to an individual for the purpose of buying a new or used car from General Motors. It can of course also include an auto loan for the purpose of buying a new or used truck.

The term of the loan is fixed at the outset and is normally summer between 12 months and five or six years. The shorter the period of the loan, normally the higher the interest rate, where as a longer period of loan may work out much cheaper for some people.

It is worth considering the length of time period of the auto loan involved, whether from General Motors or another lender. Many people will opt for a long period of time for the loan period as this normally means they will have a lower monthly repayment cost than if they had a short loan period.

GM Financial Auto Loan

Whilst this can sometimes be true, it also means that there is a much greater likelihood that their cart will devalue to such an extent that they are in effect in negative equity. Whilst the term negative equity is not always applied to auto loans, it does exist although obverse is not on the same scale as a sort of when referred to home owner loans.

It is however an important consideration given that if an individual has a GM financial auto loan in place, and the car is written off or totalled in anyway then there is obviously a significant gap between its value in insurance terms, and the amount left outstanding on the auto loan.

This is one of the reasons why it is worth making sure that you have gap insurance in place as this effectively covers the balance between the two. If no such insurances place then the amount outstanding on the loans is deemed to be a debt to General Motors owed by the customer, and as such the customer still liable to pay it off.

Most GM financial auto loans will work on this basis, and have a structure that means you pay a down payment on the vehicle, agree a fixed term loan length period, there will be an interest rate charged on the balance of the loan for the duration of the time period, and this will result in fixed monthly payments by the customer to General Motors.

This is assuming that the interest rate is a fixed rate which is fairly standard for most financial auto loans, and gives a much greater degree of stability to both sides as the amount is fixed for the period of the loan.