GM Financial continued to benefit from strong used-vehicle values and low interest rates in the first quarter, while assuming a broader role with General Motors. GM Financial took over the F&I product division from GM last year and plans to launch Cadillac Financial this month.
Used-vehicle pricing and low interest rates for borrowers helped GM's captive boost net income 9.6 percent from a year earlier to $962 million, even as loan and lease originations declined because of low vehicle supply.
GM Financial CEO Dan Berce said the captive will monitor used-car values and credit this year as economic trends, such as inflation and rising interest rates, come into play.
"The labor market is good, but we are in a fluid situation with inflation and rising interest rates," Berce said. "That's something we are really attuned to — economic developments."