If you're in the market for a car from GM, it may be easier for you to get a loan. With GMAC (GM's lending arm) approved as a bank holding company, it became eligible for federal TARP funds, and the government wasted no time in putting $5 billion into the company. Hours after the cash infusion, GMAC announced it was loosening its lending standards and offering zero-percent financing on some models.

Bloomberg reports the Treasury Department "will take a $5 billion stake in Detroit-based GMAC, the financing arm of GM, and lend $1 billion to the automaker that will be invested in GMAC to boost its capital." The good news for consumers is that soon after the Treasury released the funds, "GM was offering five-year, no- interest loans to halt this year's 22 percent slide in sales, which dealers have blamed on a lack of financing for customers."

CNN/Money says GMAC "will modify its credit criteria to include financing for customers with a credit score of 621 or higher, compared with the 700 minimum score it put in place two months ago. It won't finance higher-risk transactions, defined by a credit score of 620 or below. The median U.S. consumer credit score is 723." The credit crunch that forced GMAC to tighten its lending standards prior to the government loan had caused the lending agent to give 22 percent fewer auto loans in the third quarter of 2008 than the third quarter of 2007.  The Detroit Free Press quotes GMAC President Bill Muir as saying, "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis.'"

"It didn't take long for the government bailout of GMAC to filter down to the car lot," reports the Los Angeles Times. Along with the loosened lending standards, shoppers can get excited about GMAC rolling out zero-percent loans on some vehicles. The Associated Press reports, "GM said it will offer zero-percent financing for up to 60 months on the 2008 Chevrolet TrailBlazer, GMC Envoy and Saab 9-7X sport utility vehicles through GMAC. The Saab 9-3 and 9-5 sedans also qualify for zero-percent financing." AutoWeek adds, "GM also is offering new cash incentives with other vehicles. Both 2008 and 2009 models are covered under the incentive program, which also runs through Monday," and that "GM might expand the incentives starting Tuesday, Jan. 6, Mark LaNeve, GM's North American vice president of sales, service and marketing, told reporters during a conference call on Tuesday."

Slow sales coupled with low financing and new incentives make a winning situation for many buyers.  Check out the Best Car Deals for the latest incentives on cars from GM and other automakers.