Posts Tagged ‘repo man’

Remember GMAC? … GM going sub-prime (again)

July 31, 2012

According to IBD

Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit.

Renamed GM Financial, it has played a significant role in GM’s growth.

Ken’s Note: Approximately 20% of GM revenues go thru GM Financial

The automaker is relying increasingly on subprime loans.

Potential borrowers of car loans are rated on FICO scores that range from 300 to 850.

Anything under 660 is generally deemed subprime.

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So, lots of fleet sales to the Federal & Blue state governments … lots of self-financed sub-prime loans to move the metal

Cue the repo man … for the deadbeats’ cars … and the stock-sliding company.

* * * * *
Note: GM shares are now about half of the IPO price.

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