agent Entrepreneur logo
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

Two dodge cars outside of dealership.
Industryby Lauren LawrenceSeptember 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industryby Lauren LawrenceSeptember 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Ad Loading...
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Ad Loading...
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...