AmeriCredit to Finance GM’s Subprime Customers
Through a recent partnership, AmeriCredit will provide auto financing to General Motors Co.’s subprime customers.
Through a recent partnership, AmeriCredit will provide auto financing to General Motors Co.’s subprime customers.
The Fort Worth, Texas-based independent finance company and the automaker began the subvention program in September. As part of the agreement, AmeriCredit will offer financing on new 2009 and 2010 GM vehicles.
“From the GM perspective they probably want to help dealers move newer models,” said AmeriCredit spokeswoman Caitlin DeYoung.
In order to participate in the subvention program dealers need to have an active dealer agreement with AmeriCredit. Then they can submit applications as they usually do through RouteOne or DealerTrack.
GM formerly used GMAC Financial Services to finance its higher-risk credit customers. But since GMAC became a bank holding company in January and shutdown its subsidiary Nuvell Credit Company, which handled nonprime customers, it has focused on customers with less credit risk.
AmeriCredit primarily finances consumers with average credit scores in the 500 and 600 range, said DeYoung. The finance company currently has a similar subvention program with Kia.
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