GM Financial (GMAC Finance) Review: Your 2021 Complete Guide

“If you are looking to buy a brand new General Motors vehicle or lease one for yourself, GM Financial may be the way to go.”

A lot of things are needed to buy a car.

Apart from having cash on hand to pay for a down payment, one of the things you’ll need is financing so that you can make regular monthly payments towards a car you are buying.

Financing is important because if you can’t get a loan, you won’t actually be able to buy that car of your dreams.

This is where GM Financial, or sometimes referred to as GMAC Finance or GMAC Financials, comes in.

With their help, you can get the car that you’ve dreamed of. Let’s take a look at who they are.

Who is GM Financial (GMAC Finance)?

GM Financial or GMAC Financials is a world provider of automobile financing services.

The company is built on the backs of a long-standing relationship and reputation with the General Motors Corporation or GMC.

It is based in Fort Worth, Texas, and is a subsidiary completely owned by GMC.

They offer financing solutions to customers around the world for vehicle purchases with General Motors, as well as lease programs for individuals and businesses.

Their role is to help you find the right solution for financing that’s the best fit for you.

Before becoming GM Financial it was known as GMAC or General Motors Acceptance Corporation which ran up until 2010.

It was then it transitioned to its current name of GM Financial, though many still refer to the company as GMAC.

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How does GM Financial (GMAC Finance) Work?

The process is actually easier than it sounds.

To apply, you can go to the GM Financial website and fill out the application form.

It will guide you step by step and the information need to get approved.

You will be asked details about the vehicle you are trying to buy including make and model and even the year of production.

You will then be asked to provide your personal information and lastly the dealership that you want to get the new car.

This process will pre-qualify you for an auto loan with great GMAC financing rates.

How Much Can You Borrow?

GMAC Finance will allow you to borrow anywhere between $7,500 to $125,000 which is a larger amount than most other lenders will allow.

The amount you can get is dependent on your credentials like how much you earn and what your income is.

The length of the loan term will also affect your GMAC finance rates.

For obvious reasons, larger loan amounts and longer payment terms will impact both your interest rates and APR.

What APR Can You Get With GM Financial (GMAC Finance)?

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APR or Annual Percentage Rate is the total interest rate you get when accumulated in a year.

This can vary depending on the loan as some loans and credit give you a reprieve from interest rates in the first few months.

The APR can also be influenced by your FICO score, loan amount, and payment terms.

As of 2021, GMAC Finance rates are around 1.9% to 19.9%.

What Charges Are There With GM Financial (GMAC Finance)?

There are some fees involved with GM Financial like most lenders.

There will be a loan origination fee, a late payment fee, and a prepayment fee. 

An upfront fee will be collected to generate and implement the loan they will give you which is common with most lending companies.

And a late payment fee is applied for any late payments on your monthly dues.

You will probably not be able to find any company that isn’t charging a late fee for loan payments.

Are There Pros and Cons Using GM Financial?

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As with any lender, there will be pros and cons with going with GM Financial over using another auto lender. Let’s take a look.

Pros:

  • GM Financial is available in all 50 states in the US including Washington, DC. As GM Financial is a global company, so some countries may also be able to get loans through them.
  • You can get funding as quick as seven (7) business days which is generally faster compared to other lenders that can take weeks or even months to be approved.
  • GM Financial specializes in General Motors vehicles so you know that they know what you are doing and will get you the car loan you need based on the specific car you are getting. 
  • Prequalification is available online making shopping for a car easier and more convenient.
  • GM Financial also allows for leases so if you prefer to lease a GM car rather than buy one. 
  • GM Financial allows for both personal and business solutions which is a convenient option for companies wanting to lease a fleet of vehicles and company cars for employees.

Cons:

  • A Prepayment fee would be charged should you decide you want to pay off your loan early. Most other loan companies don’t do this. 
  • The maximum term of payment is 72 months which is shorter than other companies that allow up to 84 months for payment terms.
  • Purchases are restricted to approved dealerships only. If you locate a car that is not at an approved dealership you won’t be eligible with GM Financial.
  • There aren’t a lot of online resources available with GM financial unlike other lenders so many of the transactions will be done physically.
  • Prequalification with GM Financial will hurt your credit score as it will do a hard inquiry. Other lenders don’t do this so you need to be careful if you’re serious about borrowing from GM Financial. 

Is GM Financial Right Choice For Me?

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GM Financial is not for everyone.

If you are looking to buy a brand new General Motors vehicle or lease one for yourself, GM Financial may be the way to go.

They know the products in and out and can find the best terms for the exact vehicle that you want. 

However, if you are looking for a used car, or are considering paying off your loan early if given the chance, then GM Financial may not be the right loan lender for you.

Remember that you should choose an auto loan lender that fits your needs and not just because it’s easier through the dealership’s partner company.

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Author: John Benares

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