The financing arm of GM announced that it would ease up on credit restrictions and even waive some dealer fees in order for more consumers to be able to get auto loans.  GMAC is going to make available $5 billion to new car buyers out there, which will hopefully pump up sales figures that have been severely depressed.  Until now, many motorists had to opt to keep their current cars with used car warranties, because they weren’t eligible for financing.

The elimination of some of these fees placed on dealers will give the dealers a break, however for consumers the implications even go further.  Since the credit markets seized in October of 2008, this is the first time that car shoppers having credit scores under 620 will be able to get a loan from GMAC.  Also, the company claims it will cut some rates for used and new cars, but it wasn’t specified how much.

GM is hoping this move will make the number of car buyers increase from 30%-35% for the GM dealers that finance using GMAC, which is approximately 70% of all of the GM dealers.  The company claims they will still be using discretion when deciding who will be able to get loans, and will take into account things like an applicants’ financial records and job status.  However, lots of people who couldn’t get loans before will be able to purchase new cars with new car warranties.