GM’s captive finance arm, GM Financial (GMF), continues to grow its share of GM loans and leases. In the second quarter of 2017, GMF’s combined loan and lease originations were $12 billion, up 24 percent from $9.7 billion a year ago.
That equates to 43 percent of GM’s U.S. retail vehicle sales in the second quarter, an increase of 34 percent year-over-year, and 46 percent for the first half of 2017, up from 36 percent a year ago.
Most of that growth was from loans, as GM Financial continues to come fully online as GM’s captive finance company and its products proliferate throughout the GM dealer network.
GM Financial’s retail loan originations were $5.3 billion for the quarter, up from $3.2 billion a year ago. In the first half of the year, retail loan originations totaled $10.9 billion, up from $6.4 billion a year ago.
GM Financial’s lease originations grew to $6.7 billion from $6.5 billion in Q2 2017 over the same time frame a year ago. Lease originations in the first half of 2017 were $13 billion, down from $13.2 billion a year ago.
About GM Financial
General Motors formed GM Financial in 2010 when it acquired subprime lender AmeriCredit in Forth Worth, Texas for roughly $3 billion USD. The automaker has been building up the division over the last several years, adding commercial loans and floorplan financing for dealers, along with prime-risk retail loans and leases, while directing retail loan and lease incentives to the captive.