yes, but GMAC was recently bought out by Ally, and now GM financial isn't just auto loans but now GM can break into housing loans and other types
, imo it's def. not a bad investment for GM
And this is one of the BIG reasons GM shouldn't do that again. Not the owning a finance company part, but by putting their fingers into something they got hammered with before. Unless they come looking for another bailout. Interestingly enough, when I was at the GMC dealer the other day, we were talking about this very thing.
GM doesn't like being told what to do, especially by a finance company they no longer own. They were pissy about how much tighter Ally held the credit strings. Wow, imagine that. God forbid people with poor credit histories go out and get MORE in debt in a bad economy. My dealer said that he just had a couple buy a Lucerne under the new finance arrangements....and they had a combined best of a 518 credit score!!! Sure their were restrictions, and I know GM needs to up their sales, but c'mon! Sub-prime lending isn't as horrible on cars as it's easier to repossess than foreclose, but then, look at the used car market now.
Maybe as (if) the economy returns to somewhat normal, it might be a good move, but for now, they need to have some higher standards for car loans and stay out of the housing markets.
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