In yet another sign that the credit crisis is strangling the auto finance sector, GMAC yesterday announced that it would only lend to borrowers with a credit score of at least 700. Full coverage of the news is available here.
GMAC is 51% owned by Cerberus Capital Management. Cerberus also owns 80% of Chrysler, including its captive financing operation. Chrysler earlier this year stopped originating leases.
There was no word on how the decision by GMAC would impact its 2005 agreement with Bank of America Corp., in which BofA agreed to purchase $55 billion of auto loans from the captive financier through 2010.
