The US automaker is also in the business of providing loans, through its General Motors Financial Company Inc., which was established back in 2010 through the purchase of AmeriCredit Co.
The captive finance company was known primarily for giving credit on auto loans to persons with not so good background and has every intention to spur its activities in 2014, announcing the move to develop car loans for customers with prime credit ratings starting this summer.
“Obviously the core of the business when we acquired it was subprime,” said GM President Dan Ammann, who oversees GM Financial. “We now have a full-scale leasing capability, full-scale floor plan and dealer financing capability, the overall wholesale financing side of the business. So what’s left obviously is the prime retail loan piece, and we expect to move into that market through the course of this year.”
GM Financial President and CEO Dan Berce also added that dealers requested the new type of loans, and around 300 GM dealers that use GM Financial for their vehicle financing would be among the first to start the new plan.
“We would expect to see pretty meaningful growth, at least in absolute dollar terms, over the next few years,” Berce said in an interview.
The GM Financial also intends to move in the small business territory, as it would introduce later in the year new loans and leases designed to aid customers who aim to buy a small fleet.