General Motors has announced an all cash transaction to purchase AmeriCredit for $3.5 billion. AmeriCredit is an automobile financing company that was founded in 1992 and has particular expertise in non-prime lending. GM has lacked an in house financing unit since 2006 when it divested General Motors Acceptance Corporation (GMAC) which has since been rebranded as Ally Financial. Having a “captive” financing unit will allow GM to provide credit to customers who found it difficult to qualify for loans due to subpar credit. Once the acquisition is complete, AmeriCredit will also enter the leasing business which should further expand opportunities for GM to attract customers.