P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM Has a Subprime-time Player

October 4, 2010
2 min to read


If the AmeriCredit acquisition works as General Motors Co. intends, GM dealers will lease more vehicles and arrange more loans for buyers with low credit scores.


GM's acquisition of AmeriCredit Corp., scheduled to close Friday, Oct. 1, provides the automaker with a captive finance arm once again. The $3.5 billion deal should lead to higher vehicle sales for both GM and dealerships, representatives of each told Automotive News.

Ad Loading...


"If we get some incentivized leases out there that are a little bit more aggressive and a little more subprime financing, it would certainly help our volume," said Tim Copenhaver, dealer principal at Champion Chevrolet-Cadillac in Johnson City, Tenn.


Two-plus years ago, some of those subprime customers could buy vehicles easily despite their troubled credit, Copenhaver said. But their financing options haven't recovered in today's market.


"Daily, we have some subprime customers who we can't get qualified because there's just nowhere to go with the paper," Copenhaver said.


GM spokeswoman Annalisa Bluhm said the acquisition of AmeriCredit will give dealerships a better range of financing options for nonprime customers, plus more leasing ability.


"Our dealers have been quite vocal: Give me a program where I can sell cars," Bluhm said.

Ad Loading...


Higher sales are likely, she said, though GM did not share projections. About 40 percent of consumers have credit scores of less than 680, which is considered below prime.


"That's huge," Bluhm said, adding that AmeriCredit has proved it can manage the risk effectively.


A regional lease program will launch by March, although Bluhm said details on regions, brands and nameplates have to be worked out.


AmeriCredit will be renamed General Motors Financial Co. but will continue to operate as AmeriCredit for its non-GM dealer customers. Non-GM business provides the majority of AmeriCredit's volume — almost two-thirds of the lender's overall originations and about 55 percent of new-vehicle originations, Bluhm said.


GM's 4,500 dealerships are not required to use GM Financial, and the automaker is continuing its relationship with Ally Financial, formerly known as GMAC Financial Services. Ally will continue to focus on prime customers and wholesale financing for dealers, Bluhm said.

Ad Loading...


That was good news to Copenhaver, who said, "We do a ton of business with Ally and get wonderful service."

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →