By Colin Bird on September 30, 2010
GM has announced it will close the sale of AmeriCredit this Friday, which should allow the automaker to offer more attractive financing and leasing in the near future. The new financial arm will be called GM Financial (new corporate logo above).
With AmeriCredit, GM will form a new in-house financing firm that will allow the company to dictate its own financing options in the U.S. and Canada.
In general, GM Financial will help the automaker re-enter the leasing business. Only 7% of GM sales are from leasing, compared with the industry average of 21%, according to CNW Marketing Research. It will also allow the company to offer more car loans and leasing options to subprime lenders.
Before GM’s bankruptcy the company sold off its captive lending company GMAC (now Ally Bank) in a failed attempt to stave off insolvency. Ally Bank stopped attractive leasing options and boosted its minimum credit score requirements, which hurt many car shoppers’ ability to purchase a GM car.
Now, in conjunction with Ally Bank and GM Financial, there should be more options if you go to a GM dealership. GM has also had talks about offering subprime lending and leasing with several other banks, including Capital One, JPMorgan Chase and Wells Fargo.