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

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
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 →