1 Jul 16
News

38% of GM Financial's earnings come from vehicle leasing

Vehicle leases now make up 38% of General Motors Financial's business, the company said, as it announced the results of a first review of its earning assets composition. Back in mid 2014, GM Financial rolled out its North American vehicle lease programme, becoming the exclusive provider for its parent manufacturer GM at the start of 2015. Consequently, the new-fangled captive finance company has now established that vehicle leases make up the largest part of its earnings (38%), 9% higher than its retail instalment contract segment. 
 
“I think that leasing has probably gotten to be a higher percentage of GM's overall sales mix than they would like to see sustained over time”, GM Financial CFO Chris Choate was quoted by Auto Remarketing. “It tends to be a slightly more expensive product for the manufacturer to support in the market”.
 
Image: GM Financial
Authored by: Frank Jacobs