January 2, 2009

GM and GMAC agree to new terms

U.S. automaker General Motors Corp. said it would offer zero percent financing for several models through Jan. 5 after adjusting an agreement with GMAC.

Automotive lending firm GMAC and GM said Friday the agreement would allow GM to offer some car loans through a third-party financing source, The Wall Street Journal reported Friday.

Previously, in accordance with a 2006 agreement, whenever GM offered financing at lower than market rates, it had to do so through GMAC, the Journal said.

The new arrangement is tied to GMAC's status switch to a bank holding company, granted by the Federal Reserve on Dec. 24.

GM announced Friday it would offer zero percent financing for up to five years for the 2008 Chevrolet TrailBlazer, GMC Envoy and various Saab models.