Used Car News

CEO Dan Berce said during a recent investor's presentation that the company was hiring staff to meet higher levels.

"We're investing in rebuilding origination levels," Berce said.
The company worked with 15,000 dealers in 2007. It now works with 5,000.
AmeriCredit slashed originations the past two years, as did most finance companies during the credit crisis and needed fewer dealers.
Berce said the company isn't in a hurry to get back to the levels of two years ago. He said competition today is much more rational and allows for better returns.
Originations rose to $300 million in November, up from $229 million in Sept.
Much of the decrease in originations resulted from tighter credit standards.
The average credit score rose to 250 from 239. That's using an exclusive scoring model with 350 as the highest score.
AmeriCredit loosened credit in some states with better-performing economies, Berce said.
Another reason for fewer originations is the overall decrease in sales. AmeriCredit entered a program with General Motors Co. to boost subprime new-car sales, which fell more than subprime used sales.
GM pays AmeriCredit to offer a lower rate on new-car contracts from its dealers.
Berce said this is the kind of program GMAC would offer in the past.
AmeriCredit executives hope to gain a greater share of used-car sales at GM dealerships, he said.
Berce expects loses to peak this quarter and for contract performance to do better in 2010 regardless of the economy's strength.
Contracts purchased in the past two years have outperformed considerably the 2006 and 2007 vintages.
"(The 2009 vintage is) coming out the gate better than any other vintage in our history," Berce said.
The 2008 vintage is more 2005, with loses around 10 percent.
It helps that large players such as HSBC and CitiFinancial exited the market. The competition for volume led to better credit decisions, Berce said.
The main causes of defaults are job loss, family change and medical expenses, Berce said. This makes unemployment a key economic factor.
But Berce said AmeriCredit has had good performance from its Michigan contracts. That state has the nation's highest unemployment.