After four years since it was acquired by General Motors in October 2010, GM Financial is now capable of offering a full range of products to the carmaker’s dealers. GM Financial chief executive Dan Berce told Automotive News that for the last four years, the captive lender had been building its capabilities in areas like loan, lease and dealer-lending products like floor-planning.
He said that GM Financial has all of its capabilities “built up,” it would now be able to grow it finance penetration at a better. Berce is also forecasting a tremendous growth for GM Financial, noting that the captive lender financed just 10 percent of all GM new-vehicle loans and leases in the US in the third quarter.
Since a typical captive finance arm's penetration rate is over 50 percent, there should be a lot of room for growth for the company. Berce remarked that the company expects a surge in new-car sales next year, adding that they “have the added growth trigger of increasing our financial penetration."
He quipped that GM Financial spent literally the last four years on its product capability. Right after it was purchased by GM, the captive lender rolled out leases within 90 days after the acquisition. By July 2011, the company offered a range of lease products covering every consumer demographic.
In 2012, GM Financial launched a floor-planning product for dealers "with all the ancillary dealer finance products such as real estate loans and lines of credit," Berce said. This year, GM Financial launched a lease program for business customers in September and prime loan in November.