GM Financial Posts Income of $51 Million in September Quarter
General Motors Financial Company Inc., formerly known as AmeriCredit Corp., reported net income of $51 million for the quarter ended Sept. 30, 2010.
FORT WORTH, Texas — General Motors Financial Company Inc., formerly known as AmeriCredit Corp., reported net income of $51 million for the quarter ended Sept. 30, 2010.
Net income for the September quarter was adversely impacted by $43 million ($30 million after tax) of expenses directly related to the acquisition of the company by General Motors. The company reported net income of $26 million for the same period a year earlier.
Originations were $959 million for the September quarter, compared to $906 million for the quarter ended June 30, 2010 and $229 million for the quarter ended Sept. 30, 2009. Finance receivables totaled $8.7 billion, compared to $10.0 billion at Sept. 30, 2009.
Annualized net charge-offs were 5.4 percent of average finance receivables for the September quarter, compared to 8.4 percent for the year-ago period.
Finance receivables 31-to-60 days delinquent were 6.2 percent of the portfolio in the September quarter, compared to 7.6 percent in the year-ago period. Accounts more than 60 days delinquent were 2.5 percent of the portfolio in the September quarter, compared to 3.8 percent in the year-ago period.
The allowance for loan losses as a percentage of finance receivables was 6.1 percent at Sept. 30, 2010, compared to 6.6 percent at June 30, 2010 and 8.2 percent at Sept. 30, 2009.
The company had total available liquidity of $856 million at Sept. 30, 2010, consisting of $538 million of unrestricted cash and approximately $318 million of borrowing capacity on unpledged eligible receivables.
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →