GMAC loans offer several financing options for prospective owners of new and used General Motors vehicles. Choosing ownership over leasing is beneficial for those who prefer the pride of owning their own vehicle, those who modify their vehicles from stock and high-mileage drivers whose driving patterns do not allow them to lease. GMAC’s finance offerings are geared at borrowers with excellent credit histories, but GMAC underwriters are allowed to make situational decisions to approve borrowers with credit scores that are less than 700. The most common financing plans are traditional financing contracts and GMAC SmartBuy programs.
Since the 1920s, traditional financing has been the primary focus of GMAC. Traditional finance contracts require a fixed number of installment payments (normally between 24 and 72). After successful repayment, the purchaser will own their vehicle outright and GMAC will release their lien on the vehicle. At the end of a traditional finance agreement, the owner may choose to keep their vehicle, sell it to a private individual, sell it to a dealership or apply the trade-in allowance toward the purchase of a new vehicle.
GMAC SmartBuy was introduced to give buyers the convenience of a lease along with the flexibility of ownership. With a GMAC SmartBuy, the selling price of the vehicle is amortized over a 10 year span. You will make scheduled payments for a fixed term (normally four or five years). At the end of this term, the vehicle will still have five or more years of payments remaining. This remaining balance is called the balloon payment. You may elect to refinance the final balloon payment, pay cash or check to pay off of the balloon or you can return the vehicle to your dealership and pay a small disposal fee.