GM wants more suprime buyers, and wants to do its own lending

Yup. GM wants to buy back the auto-lending branch of Ally Bank - which used to be GMAC. This would let GM dealers offer financing again and feel all grown up. It turns out that subprime buyers are 16% of the new car market.

You see the thing is, sub-prime buyers should never, ever, be financing a new car purchase. It does not make a damn bit of sense. Buy a reliable cheap used car and call it good. Honestly - you can get an older Toyota or Honda or especially SUV for $2-$5k, wtf are you doing buying a new car? That is unless you are paying cash.

Back in the good 'ol days when American car companies were not owned by the government, but made crap cars (actually - Chrysler still makes crap cars, the big irony is that it was right when GM finally started making great cars that it went under), the US car companies lost money on every car they sold... sorta.

You see, they lost money on the car (they made money selling SUVs, but not cars), but they made money on the financing. Financing lets you make back a lot, especially financing subprime buyers with high rates (again - wtf are you people doing buying new cars?).

Now GM wants back in, so that it can sell Chevy Camaro's with $450/mo payments. Hell, I would too if I were GM. I'm just amazed that such a large percentage of the new car market is subprime - maybe you should be thinking about those credit card payments first?

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