Car loan incentives are coming out thick and fast from General Motors after its $6 billion bailout by the US Treasury. Some of these are interest rates as low as zero percent.

GMAC LLC, the auto and mortgage financing division of General Motors, has reacted positively to the investment given to it by the US Treasury. The funds granted amount to $6 billion, $5 billion of which bought equity in GMAC and the rest was loaned to GM itself to buy stock in the financing house. GM's reaction to the windfall has been to relax certain credit restrictions to consumers in order to enlarge the pool of potential customers and immediately boost sales. GM sales are down about 22 percent overall.

These incentives for example, include offering interest rates as low as 0% for up to 60 months on cars and trucks. Models that should benefit include GMC Envoys, Saab 9-5s and Chevrolet Blazers. GMAC had, only two months ago, increased the credit score required to qualify for auto lending to 700 "due to the credit crisis". This time the company lowered the score to 621, which should now include the 40% of people that were previously excluded by the steeper score of 700.

"The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers," GMAC President Bill Muir said in a statement. "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the US."

Many of the vehicles with incentives have stackable bonus cash and/or dealer cash ranging from $500 to $4,250.

See press release below for specific incentives.


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