GM Financial Company Inc. has launched its new Opel Financial Services brand, after buying back European and other international operations of Ally Financial. With its German banking license – held by Ally -- back in-house, GM unit Opel/Vauxhall now hopes to offer cheaper loans and leasing deals. With an in-house service helping provide auto financing, Opel is expecting that the proportion of cars sold using financing to exceed the current level of 40 percent.
Meanwhile, rival carmakers could sell up to 50 percent of their vehicles through financing offers. According to Opel Chief Financial Officer Michael Lohscheller, Opel Financial Services will offer more attractive financing deals, including zero interest rates with no down payment.
He remarked that the launch of Opel Financial Services was a very important step for the brand and its product offensive, noting that the carmaker was not always in a position to make the best financing offer as it does not have its own bank like its rivals.
The financing offers will apply to Opel and Vauxhall customers in Germany, the United Kingdom, Italy, Belgium, the Netherlands, Luxemburg, Sweden, Switzerland and Austria.
Opel said it would launch the offers to other European countries later. As part of its $4.2 billion acquisition deal with Ally Financial, GM Financial has attributed $1.7 billion to its European financing operations, Lohscheller disclosed. The partial closing of the acquisition deal in April 2013 allowed GM Financial to regain the German banking license, enabling it to offer more favorable refinancing opportunities.