Aching for a Camaro, but your credit is a little spotty? General Motors now has a deal for you. It announced this morning it was buying AmeriCredit., an auto finance company with a strong sub-prime loan specialty. Owning a finance company also will let GM do more leases.
The deal is for $3.5 billion in cash (thank you, Uncle Sam) and will close in the fourth quarter.
GM has lost sales because it owned no so-called "captive" finance unit to step up for sub-prime buyers -- who are 40% of all car buyers. GM and Chrysler are the only major automakers without their own finance units to support sales. GM pioneered the idea of a car company having its own loan unit, but now-independent Ally (formerly GMAC) is pretty much out of sub-prime car loans and leasing as it digs out of its mortgage mess.
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Woody Allen couldn't write a better script....seriously. Satire and Reality are now one. That's the Singularity of Hilarity. No need for comedians anymore, all you have to do is look around you for your comic relief. It's all one big joke, and the joke's on us.
ReplyDeleteMore Satire as Reality.
ReplyDeletehttp://www.youtube.com/watch?v=6iQ7ZDUutU4&feature=player_embedded
So many Patriots, so little time.
yeah but go to any of those GM dealers and see how much those POS are still priced at!
ReplyDeleteSo where the hell is this "deflation" again uncle Ben?
What good will this do? Screw over another group of people as if that will make things better?
ReplyDeleteAs amerci credit is going to buy an auto finance company with a sub prime loan facility. We need to do little earlier as they will be closed in the fourth quarter.
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