GM Financial wants 20% share of GM US dealer business

Article by Anita Panait, on August 27, 2013

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.

Topics: gm

If you liked the article, share on:

Comments

Recommended

It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries