FORT WORTH — General Motors recently called on AmeriCredit to offer a subvented program for franchised dealers looking to get credit-challenged customers into new 2009 and 2010 GM models.

"The program is structured similar to other manufacturer subvention programs," Caitlin DeYoung, a spokeswoman for AmeriCredit, told SubPrime Auto Finance News.

"For subprime loans that we approve on new GM vehicle purchases, GM will provide AmeriCredit with a cash payment. AmeriCredit essentially uses this cash payment to reduce the APR that we would have charged the customers to that the payment amount, and loan terms offered are more favorable than an approval granted without the subvention dollars," she continued.

On the dealer side, DeYoung indicated that they will not be charged an acquisition fee on these subvented loans. And because this is still so young, she said the company is unable to offer a forecast of how much business the program will generate for AmeriCredit over time.

Basically, dealers need to have a relationship with AmeriCredit to take advantage of this program. The program went in effect in early September.

Meanwhile, John McDonald, a GM spokesperson, pointed out that the deal with AmeriCredit is not designed to replace Nuvell or any other program. Nuvell was the automaker's subprime auto lender that closed up shop due to the tightened credit markets.

McDonald explained, "What happened was that the financial markets collapsed and many banks and finance companies stopped offering credit to all kinds — low- and high-score programs, APR financing and leasing. Now that the immediate crisis has passed, some finance companies are getting back into auto financing to assist customers in buying cars at their local dealership.

"The AmeriCredit program helps customers who have less-than-perfect credit get affordable financing for a new car. GM dealers now have a variety of finance offers for customers including this one, GMAC, US Bank and hundreds of credit unions," he told SubPrime Auto Finance News.