During the financial meltdown, people had to virtually have perfect credit score to get a good deal on a vehicle.
GM says there is now help available for those customers.
Pete Wills is the general manager at Applegate Chevrolet in Flint. "Some of the credit has loosened up, but we still have a number of customers that aren't able to get financing."
General Motors will acquire one of the leading independent auto finance companies, AmeriCredit, to help move more vehicles off dealer lots.
GM executives say their sales have been hurt by a lack of subprime and lease financing. "It's something the dealers have been crying for for a long time," Wills admitted.
According to Wills, this $3.5 billion transaction means dealers can now put some customers that otherwise couldn't get financing into a new vehicle. "This will make it possible for a much larger percent of our customers to get financing."
This also helps those who want to lease certain vehicles. Wills says leasing was a popular option at the dealership. "At one time, we were almost 50 percent. It's not quite that now, but we do a tremendous amount of leasing, and this will certainly help in that area now."
The deal is expected to close by the end of the year.
