Bad Credit Car and Auto Loans Could Cause More Problems as GM Buys AmeriCredit
Posted on | July 26, 2010 | No Comments
It seems as if we have seen this movie before. GM decides to jump into a financial services business that offers bad credit borrowers auto loans. No, it is not 2007, it is 2010 and GM is buying subprime mortgage lender AmeriCredit for $3.5 billion. It is very important to recognize that the automaker is 61% owned by the U.S.
This is the same company that had to spin off all kinds of bad credit in the form of Ally Bank not too long ago. Oh yeah, remember the whole GM bankruptcy situation. There is absolutely no reason that this company should be diving right back into the financial services sector but that is exactly what they are doing with the purchase of AmeriCredit.
GM sees that interest rates are very close to an all time low, around 4.5% on a 30 year mortgage, and they realize there is sure money to be made in financial services but it looks as if they did not learn from their mistakes in the past. This spells disaster as offering bad credit auto and car loans to borrowers should not be done by a company that filed bankruptcy in the last two years.
Author: Heather Best
Tags: americredit bad credit > americredit home loans > bad credit mortgage home loans > gm home loans > gm mortgage home loans > gm mortgage loans > gm purchase of americredit
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