AmeriCredit Gives GM a Subprime or Bad Credit Loan Option for Car Buyers
Posted on | July 26, 2010 | No Comments
The subprime loan industry has been quite vocal about GM attempting to purchase AmeriCredit. AmeriCredit offers car and vehicle loans to those who have less than perfect credit and are often considered “subprime” or “bad credit.” This is the same GM that filed bankruptcy recently and spun off Ally Bank (formerly GMAC) in 2006.
The deal between AmeriCredit and GM is for $3.5 billion in cash and is set to close in the fourth quarter of 2010. GM has stated that it has lost sales due to the fact that they do not have a finance unit that can offer assistance to those who have bad or subprime credit which happens to be about 40% of the companies buyers.
Once this deal goes through GM will start to phase out its work with Ally Bank which could cause problems for the financial institution which sees many of its customers from GM. Over the next month Ally Bank will look to secure partnerships with other major companies in hopes to gain a financial backbone to survive this very struggling time.
Author: Heather Best
Tags: americredit > americredit loans > americredit subprime loans > bad credit car loans > gm bad credit car loans > gm loans > gm subprime car loans > gm subprime loans
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