GM Financial more than doubled fourth-quarter profits and boosted loan and lease originations as General Motors' sales and average transaction prices rose.
GM Financial's net income surged to $776 million during the latest period, GM's captive finance company said in a statement last week.
"We realized larger availability of off-lease vehicles. Credit was much better year over year, and we had less interest expense because of declining lease interest rates," CEO Dan Berce told Automotive News.
Retail loan originations swelled 39 percent to $7.6 billion, and lease originations increased 10 percent to $6 billion, largely on higher GM sales and increased loan and lease amounts.
GM's U.S. light-vehicle sales rose 4.8 percent in the fourth quarter, as retail sales began to reach pre-pandemic levels and redesigned full-size SUVs hit the market. It was GM's strongest fourth quarter on a retail basis since 2007. Retail deliveries increased 12 percent, the automaker said last month.
GM's average transaction price during the fourth quarter rose 6 percent to $43,855, according to TrueCar.
GM Financial financed 41 percent of GM's retail sales in the quarter, up from 38 percent a year earlier. Berce expects GM Financial's share of GM loans to be consistent or slightly higher this year.
Fourth-quarter revenue fell 5.7 percent to $3.4 billion as the captive's lease and commercial volume declined, Berce said.