Front Office: A message from Kyle Birch

Published September 2011

Dear Dealer Partner,

Peak car buying season for dealers and consumers has led to an equally busy summer at GM Financial. In August, we announced our June 2011 quarter earnings. GM Financial originated over $1.5 billion of loans and GM leases, and earned $96 million. The percentage of loans for GM new vehicles increased to 30 percent of total loan originations, up from 22 percent in the March quarter and 18 percent in the December quarter contributing to GM's increased penetration in subprime financing to 7 percent, well above the industry average.

Since being acquired by GM, we've set out to give dealers and customers the best financing options possible by increasing competition in the auto finance space. In early July, we did exactly that in the leasing space. Our lease product is now available to GM dealers nationwide. And, we have expanded our program to include consumers of all credit quality - from super prime to subprime. As noted in our May edition of Dealer Insider, we entered the Canadian market in April through the acquisition of FinanciaLinx, a leading independent leasing company based in Toronto. Our GM dealer customers in Canada now have a lease program to offer to their consumers.

While we have worked hard to expand our product line to give you more financing options, we remain committed to our core subprime loan product. With unemployment remaining high and economic recovery in question, it is no surprise that access to a subprime loan product can add incremental sales to any dealership. Over 40 percent of the U.S. population has less than prime credit and an additional 15 million consumers are estimated to have been added to the ranks of subprime since the 2008 downturn in the economy.

This edition of Dealer Insider focuses on this misunderstood segment of auto buyers and what dealers across the country are doing to adapt to this expanding customer base. Effectively utilizing the subprime loan and lease products that GM Financial offers will allow you to broaden your target customer base and increase incremental vehicle sales. Add to that the subvention program offered through the GM and GM Financial partnership, and it's a win-win for everyone, as demonstrated by Kingdom Chevrolet in Chicago. Keep reading to learn more, and as always, for more information about GM Financial and our products please email our Dealer Services Team at DealerRelations@gmfinancial.com.

Sincerely,


Kyle Birch
EVP Dealer Services
GM Financial