Consumer Car Buying Advice Blog

The recent news that General Motors will be purchasing AmeriCredit is very good news for car buyers hoping to finance their next vehicle with auto loans for bad credit.

What we do

Here at Auto Credit Express we’ve spent more than 20 years working with consumers who have bad credit and helping applicants raise their credit scores and reestablish their car credit by financing a vehicle with a bad credit auto loan.

Applicants can accomplish this by filling out our online car loans with bad credit loan application and avoiding a tote the note dealer, they can begin a new chapter in their lives by getting approved at one of our affiliate dealers for a second chance auto loan. Along with paying the rest of their obligations on time, they will then be able to re-establish their auto credit and, at the same time, raise their FICO scores.

One other reason many consumers visit our site is because we’re truthful about what it takes to do this. We readily admit that the process can be an expensive one because of the high interest rates associated with bad credit auto loans.

General Motors and bad credit car loans

As we wrote in an earlier article, it was no secret in the auto industry that General Motors was not satisfied with the number of bad credit customers its dealers could get financed. Mark Reuss, president of GM North America previously admitted on several occasions that GM has lost a number of sales because Ally (formerly GMAC) doesn’t lend to subprime customers.

According to an article written by David Welch at Bloomberg news, 7% of GM’s current customers are subprime buyers financing their vehicles using car loans with bad credit, while other captive lenders (such as those owned by Ford and Toyota) consider 17.1% of their customers to be subprime. Clearly, GM needed to close that gap in order to be competitive.

GM AmeriCredit press release

Yesterday, General Motors Corporation issued a press release that began this way:

“To meet customer demand for leasing and non-prime financing for GM vehicles, General Motors and AmeriCredit Corp. today announced they have entered into a definitive agreement for GM to acquire AmeriCredit, one of the nation’s leading independent auto finance companies, in an all-cash transaction valued at approximately $3.5 billion.

‘This acquisition supports our efforts to design, build and sell the world’s best vehicles by expanding the financing options we can offer to consumers who want to buy GM vehicles,’ said GM Chairman and Chief Executive Officer, Ed Whitacre. ‘Adding AmeriCredit to our team will improve our competitiveness in auto financing offerings, and I am very pleased to have them on board.‘”

AmeriCredit

For those of you out there that may not be familiar with AmeriCredit, the company is currently one of the largest independent automotive finance companies in the U.S. More importantly for bad credit auto loan buyers, it also happens to be one of the largest independent lenders for near-prime (between good credit and bad credit) and subprime (bad credit) in the country.

It is also one of a handful of bad credit lenders that has weathered the recent economic downturn fairly well, accomplishing this by drastically cutting back on new loan originations from the end of 2008 through most of last year, while gradually increasing originations with the beginning of this year.

What this means to bad credit car buyers

“With AmeriCredit providing us niche capabilities in leasing and non-prime financing, along with the continued strong support of Ally Financial and others for prime retail and dealer financing, we’ve set up a very competitive solution for our financing needs, which will be resilient through credit and business cycles,” -  GM Vice Chairman and Chief Financial Officer, Chris Liddell.

Clearly, General Motors pending acquisition of AmeriCredit signals that the company hopes to attract more bad credit buyers into Buick, Chevrolet, Cadillac, and GMC showrooms. The company also hopes to get many more of these buyers approved for new car loans.

The bottom line

With AmeriCredit on board, new car shoppers hoping to finance their next GM vehicle with auto loans for bad credit have an even better chance to qualify for a loan. The only question is, how will buyers be able to locate a dealer that offers the full spectrum of bad credit lenders for an even better chance of a loan approval?

Fortunately, we have the answer.  At Auto Credit Express, we work with a nationwide network of dealers that specialize in working with customers that have credit problems. These dealers are signed up with a broad spectrum of bad credit auto loan lenders and work with them to get you approved for an auto loan. Since our inception, we have processed over 2,000,000 online bad credit auto loan applications and our dealers have closed over 1 billion dollars in auto loans.

So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.

Tags: ally, americredit, auto credit, Bad Credit, car credit, credit, credit score, credit scores, fico, FICO score, general motors, gm, gmac, near prime, subprime, tote the note

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