The captive finance arm of the No. US automaker has needed four years to establish itself, but it’s now finally ready to take a swing at the automotive sector and predict a “tremendous amount of growth” in 2015.
Now, four years after it started offering financial aid to purchase GM products, the company is finally delivering a full “lineup” of instruments to the automaker’s dealerships, with CEO Dan Berce commenting that “over the last four years, we’ve been building our capabilities in areas like loan, lease and dealer-lending products like floorplanning,” and they’re now ready to increase “finance penetration at a better rate going forward.”
According to Berce. GM Financial was responsible for just around 10% of all GM new-vehicle loans and leases in the US in the third quarter and they want to grow to reach the usual captive finance arm’s penetration rate of at least 50%. Back in October 2010 GM introduced GM Financial after purchasing AmeriCredit, an independent lender that specialized mostly in subprime loans. Now, in September Standard & Poor’s updated GM Financial’s status to investment grade. The CEO says that new rating certainly helps but growth would also be based on competition moves, how other lenders work with GM and the level of incentive offerings coming from the automaker itself when dealing with loans or leases.
Via Automotive News