Lease originations skyrocketed for GM Financial in the second quarter, the first full quarter GM Financial benefited exclusively from parent company General Motors lease incentives.
“It’s important to note the second quarter marked the first full quarter in which we have positioned GMF as our exclusive lease provider. So I think it demonstrates we’re well underway with the GMF strategy that we have outlined,” said GM CEO Mary Barra in a conference call today.
North American lease originations for GM Financial were $5.6 billion in the second quarter, more than triple $1.5 billion a year ago. Lease originations were also more than double loan originations for the quarter, at $2.6 billion for North America, GM Financial said. Worldwide loan and lease originations combined were $9.9 billion for the quarter, up from $5.2 billion a year ago.
Dan Berce, GM Financial president and CEO, said in a conference call on Thursday $5.1 billion of the lease total was in the United States. “Because of lease exclusivity, our penetration of GM lease has reached virtually 100%. It was just 28% a year ago, so tremendous growth in that business for us,” he said.
In January, GM said it would steer lease incentives exclusively to GM Financial, instead of sharing them among GM Financial, Ally Financial and U.S. Bank.
GM new-vehicle loans and leases accounted for 83.5% of GM Financial originations in North America in the second quarter, up from 66.3% a year ago, the company said.
