Help End The Obama Era In 2012
Your Monthly and Quarterly Donations
Help Keep FR In the Battle!
Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!
Posted on 07/27/2012 5:47:36 PM PDT by Nachum
President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans.
The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.
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 .
The automaker is relying increasingly on subprime loans, 10-Q financial reports shows.
Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed subprime.
Subprime Key Driver
GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012.
(Excerpt) Read more at news.investors.com ...
The list, Ping
Let me know if you would like to be on or off the ping list
I’m surprised, only because I was told on FR that the only vehicles GM sells are to governments, government stooge companies like GE, and rental fleets.
A person could get rich in the recovery business soon. At least be very busy.
Gee, where have we heard of this strategy before?
i guess this makes gm the auto industry’s version of Fannie Mae.
That makes sense. There is no way the us government has a 600 or better beacon. Debt to credit limit is a mess...
I’m not sure what credit rating people have had to have to qualify for them, but some auto manufacturers have been offering zero percent interest on vehicle loans.
Is this worse than what other auto loan companies have been doing? I don’t see it as such.
the only vehicles GM sells are to governments..”
If I were selling anything to a state government, I would never sell to California, Illinois or Michigan, for starters, unless it was cash on delivery. We all know what happened to the housing market because of selling to high risk buyers. Even though the cost of a new vehicle is significantly less, it is still a loss and a whole lot easier to take south across the border.
Not to defend GM here, but this is essentially the same tactic used by Hyundai, Kia, and the others. All you need to buy a new Hyundai or Kia is a pulse and be able to sign your name.
See http://billycredit.com/ as an example.
Having owned plenty of Detroit’s cars, my standard line is....I used to work on cars, then I bought a Toyota and I don’t work on cars because I don’t have work to do on my Toyota.
No job? Bad credit? Come on down and Uncle Jimmy will take care of you. How about a new 2012 Chevy Volt for only $99 down and $99 a month. Need a Cadillac Escalade? Nothing down and only $109 per month. We accept cash, bus tokens, personal checks, IOUs, and food stamps. What are you waiting for? Get down to your local Uncle Jimmy’s. Nobody denied credit. Don’t forget to ask about our “interest only loans” .
“FICO scores that range from 300 to 850’
300? isn’t that what the homeless score?
And when those subprime loans turn rotten, Obama will squeal “Failure of the free market! We need more government intervention comrades, er, friends!”
Ping. Thanx.
I’m sure the average FICO score for Ford, Toyota, etc is about the same. It if a reflection of the terrible economy.
I know of more than a few formerly middle class people who will be completely broke in another year if this economy keeps on its current path.
Who is going to bail out all of those upside down Escalades?
So, truly, all it’s done is delay the inevitable.
Are they ramping up production of Escalades?
It must be getting bad for Chevy again. During the Olympics coverage tonight, they were advertising that you can now return your vehicle within 60 days or 4000 miles if you don’t like it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.