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

Login or Create new account to add a comment!

Recommended

The recently concluded 2016 Los Angeles Auto Show has just showcased the new generation Mazda CX-5. And with it comes a rendered version for an MPS variant. Let us see...
by - December 6, 2016
Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
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