Accelerate dealership growth with The Winning Drive
Published February 2014
If you were fortunate enough to attend the 2014 National Automobile Dealers Association (NADA) Convention and Expo in New Orleans last month, then you couldn't miss the buzz surrounding our industry right now. Accelerate was the theme seen and heard throughout the convention halls and there's no doubt that GM Financial is positioned to help GM dealers succeed in 2014 with our broad spectrum of auto finance solutions. Thanks to those of you who stopped by our booth to enjoy "The Winning Drive" tailgating festivities and learn more about our winning plays that can help you run your business like a champion.
Full speed ahead in 2014
NADA predicts momentum will continue in 2014 with an estimated 5 percent year-over-year increase from 15.6 million new cars and light trucks sales in 2013 to 16.4 million in 2014. Not only were sales on the rise last year, but so were auto loan originations. Equifax's National Consumer Credit Trends Report, released Jan. 22, indicated the total number of new auto loans originated from Jan.-Oct. 2013 was 20.2 million, totaling $405.2 billion; representing the highest origination total for that time in eight years.
GM Financial President, Dan Berce, noted in the Feb. 6, 2014 earnings call that "In 2013 GM Financial solidified its position as General Motors' captive auto finance company with global capabilities. That position will be even stronger in 2014, as we launch prime lending and commercial vehicle lending in the U.S. about midyear."
Subprime and lease: key strategies in your playbook
GM Financial knows that credit quality is a challenge faced every day on the showroom floor and today subprime auto lending accounts for 31 percent* of all auto loans originated. Having a subprime solution available for those shoppers, gives your dealership the opportunity to increase new and used sales, ultimately impacting your bottom line. Further, as General Motors' captive lender, we know that your dealership traffic encompasses customers with varying needs and requirements. That's why we also offer The Right LeaseSM for those shoppers who prefer the advantages that leasing provides.
Continuing our commitment to your dealership, we've been heavily focused on implementing system capabilities and internal training to successfully launch prime installment contracts for those GM customers with good or exceptional credit. The product will be rolled out sometime in 2014, beginning with those dealerships with whom we have a commercial lending relationship. Look for more details on this exciting new program later this year.
Peace of mind for your customers and your dealership
Last quarter, we told you about three new extended protection plans that we're marketing on behalf of General Motors – Vehicle Service Contracts (VSCs), Tire and Wheel Protection and Guaranteed Auto Protection (GAP) plans. These products are divisionally branded by GM for Chevrolet, Buick, Cadillac and GMC as part of GM's commitment to providing the best customer vehicle experience in the industry. These plans offer peace of mind to your customers when they need it most.
Finally, when it comes to growing your dealership consider GM Financial's Commercial Lending Services. Our programs include floorplan financing; capital, real estate and construction loans; floorplan insurance; and a cash management program all available to help you grow your dealership successfully.
GM Financial’s game plan is to help your customers and your business win in 2014. If your dealership is ready to win with GM Financial's auto finance solutions, training or aftermarket products, contact your DRM or nearest credit center at 888-556-4616 today.
* According to the Equifax National Consumer Credit Trends Report; released Jan. 22, 2014