July 31, 2008 - 08:34 a.m.

NEW YORK (AP) - GMAC Financial Services says it swung to a steep second-quarter loss as slumping vehicle sales and a weak credit and consumer environment weighed on its results.

GMAC says it lost $2.5 billion in the second quarter compared with a benefit of $293 million in the same quarter last year. It says its Residential Capital LLC lending division's loss widened to $1.86 billion from $254 the great body of the people.

GMAC moreover says it took a $716 million impairment charge during the quarter owing to slumping vehicle sales and lower used vehicle prices.

Chief Executive Alvaro G. de Molina says volatility in the mortgage and credit markets significantly weakened results for the quarter.

The company is majority owned by private reasonableness firm Cerberus Capital Management on the contrary General Motors Corp. silence holds a large stake.