Here's what a credit crunch is...

[Mr. Bloom]

Copied from a GMAC Press Release:

GMAC Financial Services Statement on Automotive Finance Purchase Policy

DETROIT (Oct. 13, 2008) GMAC Financial Services today implemented a more conservative purchase policy for consumer auto financing in the United States as a result of the lack of stability in the global capital and credit markets. The changes include limiting purchases to contracts with a credit score of 700 or above. Additionally, the company will restrict contracts with higher advance rates and longer terms. Last week GMAC also increased by 75 basis points the rate it charges dealers for providing non-incentivized consumer auto financing.

These changes in pricing and underwriting are related to the current market environment, which has reduced access to funds and increased the cost of funds. The company currently expects these actions to remain in place until the credit markets stabilize and accessibility improves.

Translation:

"We can't borrow, so we won't lend unless you are gold plated...and even if you are, it will cost more."

Doesn't affect me directly, but you can be sure that many dealers and manufacturers will be hammered by this