GM Financial is now ready to roll with full range of products

Article by Christian A., on December 4, 2014

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.

Topics: gm

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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