GM Financial is targeting a 20-percent share of General Motors’ dealer business in the United States and Canada in each of three lines -- leasing, prime-risk loans and commercial lending -- in the next few years, according to Chief Financial Officer Chris Choate. Choate remarked that GM Financial is already on target for the US leasing, but still has to break from the single-digit level in commercial lending.
He also remarked that prime-risk lending is not expected to start until early 2014. GM acquired AmeriCredit in 2010 and transformed it into a captive finance company as GM Financial. GM Financial has started offering prime and subprime leasing and was able to hike subprime loans for new GM vehicles. Despite that, GM Financial remains in its original business of offering used-vehicle loans.
GM Financial accounted for 33.9 percent of GM's US subprime loan volume in the US in the second quarter of 2013; 21 percent of the carmaker’s US leases; and 4 percent of GM's wholesale dealer business. Leasing accounted for 20 percent of GM's US sales in the second quarter of 2013.
Aside from GM Financial, the carmaker GM also offers leases via Ally Financial Inc. and US Bank. According to the carmaker, industry average for US lease penetration in the second quarter of 2013 -- excluding GM -- was 24.3 percent. GM’s US sales penetration was 8.6 percent in the second quarter of 2013. Industry average for subprime penetration -- excluding GM -- was 6.4 percent in the second quarter of 2013.