General Motors’ US leasing penetration up thanks to GM Financial

Article by Anita Panait, on August 10, 2012

In an effort to bring its leasing operations closer to the industry average, General Motors is using new cars, special promotions and a newly acquired captive finance company. For details, GM’s Cadillac brand is rolling out its XTS sedan and ATS compact this summer and its Buick brand is promoting its "Buick Experience" 24-month lease program while captive finance company GM Financial increases its lease business.

According to GM chief executive Dan Akerson, GM Financial has been a great acquisition for the company, as it has led to incremental volume for the carmaker. GM acquired AmeriCredit Corp., a company that specializes in subprime auto loans, in 2010 and then renamed it as GM Financial.

Under GM’s wings, the lending firm has added leasing, dealer commercial lending, incentivized new-car lending and floorplanning to its offerings. GM Financial launched its nationwide leasing last year, following a state-by-state rollout. In the second quarter of 2012, GM Financial almost doubled its lease business as a percentage of total originations to 21 percent, compared with 11 percent in the second quarter of 2011.

GM Financial chief executive Dan Berce disclosed that subprime customers account for around a third of the lender’s US lease customers for the second quarter of 2012, adding that subprime leases represent incremental business for GM. Aside from GM Financial, the carmaker also makes offers through Ally Financial and U.S. Bank.

GM hiked its US lease penetration a bit in the second quarter of 2012, to 15.3 percent of retail deliveries, from 13.5 percent in the same period in 2011. However, GM’s lease penetration figures were still below average for the US industry, which, excluding the carmaker’s, were around 21 percent for the second quarter of 2012.

Jim Cain, GM spokesman divulged last week that the carmaker expects its new Cadillac models and the Buick Experience program to push GM closer to the industry average. The XTS went on sale in June while the ATS will be rolled out this month. Buick Experience leases began in March.

Topics: gm, leasing

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016