GM Financial is the finance arm of General Motor.
It provides finance for customers who want to buy or lease a new car or truck.
There are three or four main things to think about:
Whether to buy or lease
If buying, new or second hand
How to check your credit score
How to improve your credit score
How to get the best deal on price and finance
Many customers like the idea of being able to buy or lease a vehicle from GM
General Motors has a wide range of cars and trucks that it sells, ranging from Chevrolet to Buick to GMC to Cadillac.
It is a really good idea to decide how much you can afford to borrow before becoming too committed to a particular car.
Knowing how much you can afford allows you to decide which car to go for, and whether or not to buy a new or used car, or to lease one instead.
1.GM Financial Costs – Sales and Leasing
Whether buying or leasing it is always important to separate out the process of negotiating the final sale or lease price from the finance of it. Both need to be thought of separately, even if the final financing package is done with GM financial as well as buying or leasing the car.
The cost of buying the car can vary considerably, and a number of factors need to be taken into account. Firstly is the list price of the vehicle, and it is common to expect a significant discount on this.
However the deal may well add on other charges, such as a local national sales tax, some type of registration or title fee and what are known as document fees. All these additional charges can vary widely and should be identified and itemised at the beginning of the sales process.
In addition there are usually numerous add-ons available which may or may not be of use to the customer. What really matters is that the list price is negotiated a delay before visiting the showroom, apart from a test drive, and the customer is clear about what they need in addition to the basic specifications and what they do not need.
There are essentially two routes to finance, one known as direct lending and the other known as dealership finance, in this case gm financial.
Direct lending is borrowing the money from a typical financial institution such as a bank or a credit union, where dealership finance involves arranging the credit through the manufacturers dealership, in this case General Motors.
Both are similar in terms of application processes and credit rating analysis. Whilst there are differences between leasing and buying a vehicle, the credit application process is pretty much the same.
Dealership finance is where you approach GM financial either to finance the buying of a vehicle from them, or to arrange the finance of a leasing agreement. The application process for both is pretty much the same.
It can either be done online, or when visiting a GM dealership. There are advantages to do it online first, in that if pre-approval is given it gives you a good idea of how much you can afford to borrow and what is likely to cost to repay it.
In any event, it is a good idea to get alternative quotes from other sources such as a bank or a credit union in order to compare them with any offer from GM. It is not necessary to get a huge number of alternative quotations, three or four should give you a fairly good indication of what you are likely to be charged and by whom.
The dealership finance arrangement with General Motors will involve an application form, and a credit assessment by them which will then determine whether or not they often finance, and if so on what terms and conditions.
3.GM Financial – Leasing
Leasing a vehicle from General Motors is something that appeals to a lot of people, often because it gives them the opportunity to effectively owning a new car when they would not otherwise be able to afford it. In reality they do not own it, simply rent it on a long-term basis.
Thinking of it as a long-term rental is a good idea, but there are important differences. A leasing agreement will be for a fixed period of time, often between 24 and 60 months, there will be a fixed repayment charge on a monthly basis and there are likely to be costs involved at the end of the lease period.
The costs at the end of the lease on normally referred to as lease and costs, and relate to charges for any excessive wear and tear to the interior of the vehicle as well as the outside of the vehicle, and any repairs to the bodywork of the car or truck that may be needed.
Excessive wear and tear is deemed to mean any deterioration in the quality of the vehicle that is excessive compared to what would be expected given the age and condition of the car. The way these charges are worked out should be specified and identified at the outset and detailed in the lease agreement itself.
The customer will normally be given the option of having to work prepared by themselves first, or leaving the car at it is and letting GM doing the work, but charging the customer instead.
At the end of the lease the customer will normally be given the option of buying the car outright if they wish, or if not arranging a lease on another vehicle on favourable terms and conditions if the original lease has gone as it should according to contract.
One of the important aspects of all auto finance deals relates to vehicle protection. This is because it affects both the usage of the car, but also because it can represent a significant hidden financial cost to the customer.
General Motors will have a number of vehicle service contracts available, depending upon the sale or lease of the vehicle, its age and condition.
There will also be servicing and maintenance contracts, possibly a manufacturer’s warranty, possibly a dealership warranty and possibly an extended warranty as well. The option of some type of emergency roadside assistance may be available, often as an optional extra.
This is sometimes included in an auto insurance policy so it is worth checking that you are not duplicating additional cover that you will be expected to pay for.
5.GM Financial Account – Finance Tools
Opening an online account with General Motors will be done in the event that you pre-apply for credit, and is worth having even if you do not. It gives you the option of a number of finance tools and other useful information, both before any finance arrangement is agreed, and after a sale or lease agreement has been entered into.
GM or have an online calculator which allows you to work out what you can afford to borrow and how much it will cost to repay it. This can be very useful, but really depends upon the customer’s unwillingness to be really clear with insoles about their own budgetary restraints.
It is very tempting to minimise current outgoings and maximise current incomings in order to maximise how much you can borrow for getting nicer car.
This temptation should be resisted. In addition it should be possible to download a number of manuals relating to the vehicle you have bought or leased, and other technical information if needed as well.
In addition an online account can be used to deal with any payments may be made, and also to do or process with any problems may arise either rent payments having missed all competitions regarding repayment terms and conditions.
6.GM Financial Incentives / Loyalty Offers
General Motors will offer a number of incentives and loyalty offers to potential customers in a variety of different ways, in order to maximise sales. There are normally standard rebates to people who are active have been active in the military, and to college graduates or people still in college.
In addition, General Motors are likely to offer some type of discount by way of a rebate, either on the list price or on some type of servicing and maintenance contract. Certain deals on specific models will be advertised at different times of year, often as a way of shifting inventory.
There may also be specific finance deals, either on specific models or can certain times of year that will be available to people with a very good credit score.
Loyalty offers may also be made available to customers who are looking to either you a lease, or tradingin a car previously bought with General Motors in order to buy a new one, whether arranged with gm financial or not. All these incentives and loyalty offers do constantly change, some are available nationally and some will be dealer specific.
Understanding your credit rating is really important as it determines whether GM financial or any other institution will be willing to lend you money, and if so how much and on what terms and conditions.
Your credit rating is effectively your credit score, which is a number allocated to a range of different numbers as a way of showing what the credit rating agency deems your creditworthiness to be.
This credit score is based on a credit report which is a document detailing a huge amount of both personal and financial information about you. Depending upon where you live, you should have access to a copy of your credit report for free at least once a year, possibly more.
This is well worth accessing as you can then check the information that is contained within the credit report and if any of it is inaccurate or out of date you can ask for it to be changed.
Certain elements of the report that can have a major effect also have a limited time span and it is worth checking these to make sure they have not exceeded the length of time they are able to be included in the report and thereby affect your credit score significantly.
Most people know about the need for some type of auto insurance on their vehicle, and the costs normally associated with it. In addition, depending upon the type of agreement that you have with General Motors, and whether it is a sale or a lease agreement, GM may well require additional insurance protection be taken out against vehicle.
It is worth hearing this with the dealership prior to entering into any financial contract as the costs could well affect much you are willing to pay for the vehicle. In addition that is the question of gap insurance which may or may not be included as part of any package deal of extras that the dealership is willing to offer you.
Gap insurance Is designed to cover the difference between the final price that you pay on the car or truck, and its insurance value in the event of a total loss or a write-off. In such an event, its insurance value would be based upon an insurance companies assessment of its market value, which is likely to be significantly less and the final sale price of the vehicle.
This type of insurance policy is designed to cover the difference between the two, it would otherwise be left as an unsecured debt to be paid off by the customer.
The need for the best possible finance deals relating to commercial finance is a concept well understood both by businesses and by General Motors. Depending upon the nature of the business in terms of fleet and trucking operations, there can be significant sums of money involved.
The process of arranging finance with gm financialfor a commercial operation in some ways similar to that as affects a private individual, but honestly were certain differences. The business owner as it advantage of buying or leasing in bulk, and should be able to negotiate significant discounts based on the cars trucks themselves, and also to negotiate valuable terms of any financing.
The other thing to be aware of is that there are likely to be significantly increased cheques on the credit rating of the person applying for credit, and possibly to other individuals connected to the business and possibly family members as well.
This can sometimes be a bit time-consuming, and may even seem intrusive. Other than that same principles apply to an individual’s credit score credit rating should apply.
10.GM Financial and Refinance
Refinancing a car loan arranged with GM financial can be done pretty much at any time during the loan period, and is often done many different reasons. People should not be afraid to look to refinance early on in the loan, if they think they can arrange more favourable terms and conditions.
Depending upon how the loan is structured, most of the repayment costs in the early part of the loan will be virtually all interest, and as such refinancing might well make a significant cost reduction possible.
People refinance normally either to reduce the amount of monthly repayment costs, or often to get a better deal on an interest rate, either because interest rates have changed or their own personal circumstances have that allow them to negotiate a better deal.
11.GM Vehicles – How to get best Finance Deals – TBA
GM : CHEVROLET SPARK
GM : CHEVROLET SONIC
GM : CHEVROLET CRUZE
GM : CHEVROLET MALIBU
GM : CHEVROLET IMPALA
GM : BUICK VERANO
GM : BUICK REGAL
GM : BUICK LACROSSE
GM : BUICK CASCADA
GM : BUICK REGAL SPORTSBACK
GM : BUICK REGAL TOURX
GM : BUICK ENCORE
GM : BUICK ENVISION
GM : BUICK ENCLAVE
GM : GMC TERRAIN
GM : GMC TERRAIN DENALI
GM : GMC ACADIA
GM : GMC ACADIA DENALI
GM : GMC ACADIA LIMITED
GM : GMC YUKON
GM : GMC YUKON DENALI
GM : GMC YUKON XL
GM : GMC YUKON XL DENALI
GM : GMC CANYON
GM : GMC CANYON DENALI
GM : GMC SIERRA 1600
GM : GMC SIERRA 1500 DENALI
GM : GMC SIERRA 2500HD
GM : GMC SIERRA 2500 DENALI HD
GM : GMC SIERRA 3500 DENALI HD
GM : GMC SAVANA CARGO
GM : GMC SAVANNA PASSENGER
GM : CADILLAC ATS COUPE
GM : CADILLAC ATS SEDAN
GM : CADILLAC ATS V COUPE
GM : CADILLAC ATS V SEDAN
GM : CADILLAC CTS SEDAN
GM : CADILLAC CTS V SEDAN
GM : CADILLAC KTS SEDAN
GM : CADILLAC CT6 SEDAN
GM : CADILLAC XT5 CROSSOVER
GM : CADILLAC ESCALADE 6ESV