AMERICREDIT CORP

AMERICREDIT CORP

Previous company name
URCARCO INC
Name change date
7/3/1992
Company Overview
AmeriCredit Corp. is an American company involved in the provision of car loans, both directly and through automobile dealerships, to medium- and high-risk customers. AmeriCredit was founded in September 1992 and it opened its first branch offices in Fort Worth and Houston.
Based in Fort Worth, Texas, AmeriCredit is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. The company has more than one million customers and approximately $16 billion in managed auto receivables.
AmeriCredit operates with numerous credit centers and sales representatives located throughout the U.S. and Canada, and works with more than 15,000 franchised automobile dealers across North America. The company’s mission is to create value for its stakeholders by constantly improving its services, investing in innovative solutions and information-based strategies, as well as promoting a culture of teamwork, excellence and integrity.
The company’s loan servicing activities include collecting and processing customer payments, responding to customer inquiries, initiating contact with customers who are delinquent in payment of an installment, maintaining the security interest in the financed vehicle, monitoring physical damage insurance coverage of the financed vehicle and arranging for the repossession of financed vehicles, liquidation of collateral and pursuit of deficiencies when necessary.
AmeriCredit finances its loans origination volume through the use of its credit facilities and execution of securitization transactions. Loans are funded initially using credit facilities that are administered by agents on behalf of institutionally managed commercial paper or medium term note conduits.
AmeriCredit branches can be found in the following locations: Alabama, Arizona, British Columbia (Canada), California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Ontario (Canada), Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin.
Business Summary
AmeriCredit Corp. is an independent auto finance company. The Company purchases auto finance contracts for new and used vehicles purchased by consumers from franchised and select independent automobile dealerships. Loans include auto finance contracts originated by dealers and purchased by us. The Company offers financing to consumers who are unable to obtain financing from banks, credit unions and manufacturer captive auto finance companies. The Company services its loan portfolio at regional centers using automated loan servicing and collection systems. Funding for its auto lending activities is obtained through the utilization of its credit facilities and securitization transactions. The Company sources its business primarily through its relationships with auto dealers, which it maintains through its regional credit centers, marketing representatives (dealer relationship managers) and alliance relationships.
Description and history
AmeriCredit Corp., incorporated on May 18, 1988, is an independent auto finance company. The Company purchases auto finance contracts for new and used vehicles purchased by consumers from franchised and select independent automobile dealerships. Loans include auto finance contracts originated by dealers and purchased by us. The Company offers financing to consumers who are unable to obtain financing from banks, credit unions and manufacturer captive auto finance companies. The Company services its loan portfolio at regional centers using automated loan servicing and collection systems. Funding for its auto lending activities is obtained through the utilization of its credit facilities and securitization transactions. The Company sources its business primarily through its relationships with auto dealers, which it maintains through its regional credit centers, marketing representatives (dealer relationship managers) and alliance relationships. The operations of Bay View Acceptance Corporation (BVAC) and Long Beach Acceptance Corporation (LBAC) have been integrated into its originations, servicing and administrative activities and it provides auto finance products solely under the AmeriCredit Financial Services, Inc. name.

Credit Underwriting

The Company utilizes a credit scoring system to support the credit approval process. The credit scoring system was developed through statistical analysis of its consumer demographic and portfolio databases. Credit scoring is used to differentiate credit applicants and to rank order credit risk in terms of expected default rates, which enables the Company to evaluate credit applications for approval and tailor loan pricing and structure according to this statistical assessment of credit risk. The credit scoring system considers data contained in the customer’s credit application, credit bureau report, other third-party data sources, as well as the structure of the proposed loan and produces a statistical assessment of these attributes. The Company’s credit scorecards are monitored through comparison of actual versus projected performance by score. The Company purchases individual contracts through its underwriting specialists in credit centers using a credit approval process tailored to local market conditions.

Loan Servicing

The Company’s servicing activities consist of collecting and processing customer payments, responding to customer inquiries, initiating contact with customers who are delinquent in payment of an installment, maintaining the security interest in the financed vehicle, monitoring physical damage insurance coverage of the financed vehicle, and arranging for the repossession of financed vehicles, liquidation of collateral and pursuit of deficiencies when appropriate. The Company uses monthly billing statements to serve as a reminder to customers, as well as an early warning mechanism in the event a customer has failed to notify the Company of an address change. Its collections activities are performed at regional centers located in Arlington, Texas; Chandler, Arizona; Charlotte, North Carolina, and Peterborough, Ontario.

Financing

The Company finances its loan origination volume through the use of its credit facilities and execution of securitization transactions. Loans are funded initially using credit facilities that are administered by agents on behalf of institutionally managed commercial paper or medium term note conduits. Under these funding agreements, we transfer finance receivables to special purpose finance subsidiaries. These subsidiaries, in turn, issue notes to the agents, collateralized by such finance receivables and cash. Advances under its funding agreements bear interest at commercial paper, London Interbank Offered Rates (LIBOR) or prime rates plus a credit spread and specified fees depending upon the source of funds provided by the agents.

Opened its first branch offices in Fort Worth and Houston

Business Line
Involved in the provision of car loans, both directly and through automobile dealerships
Subsidiary
ACAR LEASING LTD
Advisor
DELOITTE & TOUCHE LLP
IPO date
12/19/1990
US SIC Code
6141
Company Address
Suite 3900
801, Cherry Street
City province or state postal code
76102, FORT WORTH, TX
Phone: +1 817 302 7000
Fax: +1 817 336 9519
Country address: UNITED STATES OF AMERICA
Website url: www.americredit.com