GM Buys AmeriCredit To Offer More Low Credit Auto Loans

Illustration for article titled GM Buys AmeriCredit To Offer More Low Credit Auto Loans

GM is rebuilding GMAC Ally Bank its captive finance arm by buying AmeriCredit for $3.5 billion to increase leasing to low credit and at-risk car buyers. Wait, isn't this part of what got the U.S. into this whole mess? [GM]

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DISCUSSION

mkbruin
mkbruin, Atlas VP

I used to work for one of the nations largest Credit Risk Managers for mortgage backed securities. While there, I headed a project to transition credit risk management into the Automotive ABS arena using tie-ups with a major credit rating agency. The project was ultimately shelved as the Carpocalapse (sp) hit and securitization rates declined; however, GM bringing sub-prime back to the masses opens the door wide open again. Lots of people will be making lots of money, until the next bubble bursts...