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Daily Auto News

Buyers considering a new Chrysler car, truck or SUV (and they may be cheap, following Chrysler’s bankruptcy) will soon find Chrysler dealers offering loans from an unusual source: General Motors’ financing arm.
The New York Times reports, “Chrysler Financial will cease making consumer loans for Chrysler vehicles; GMAC, with support from the government, will provide financing through Chrysler dealers.”
Edmunds Inside Line calls the move “an unexpected twist” to the bankruptcy process.
If you owe money to Chrysler Financial through an existing loan, nothing will change. The Wall Street Journal explains, “GMAC, the financing arm of General Motors Corp, will not inherit Chrysler Financial’s book of existing auto loans and leases.”
But Chrysler dealers will deal with GMAC for all of their needs. Consumer Affairs reports, “Besides providing financing for new-car purchasers, GMAC will provide wholesale financing for Chrysler dealers. A senior White House official was quoted as saying that the Obama Administration’s auto task force had determined that Chrysler Financial ‘did not have the resources’ to meet Chrysler’s needs.” Credit restrictions have “been frustrating both would-be new car purchasers and dealers. Even buyers with good credit have found it difficult to find affordable loans for new cars, while dealers have lost ‘floorplan’ financing, the short-term loans that enable them to maintain inventory and keep their doors open.”
It is not yet clear whether GMAC’s new status as the lender to Chrysler dealerships and buyers would mean any change in lending standards.
If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.
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