Financing Divisions - GM, Ford. Do They Borrow Money to Finance or Use Income Stream?

Did GMs finance division 1) borrow money from banks to finance to customers or 2) did they use the income they generated from their car selling operations?

If its 2) how does how is this represented on the balance sheet of Ford. It's not a liability is it? Wouldn't be a short term/long term investment

Asking this because I read this article on IBM http://beta.fool.com/jharry1/2013/08/07/debt-can-be-decieving/42640/

And it leads me to think that they're borrowing money to lend to customers (option 1). Just want to confirm

Career Resources

+145	How to stop feeling like shit for not making it in IB?	IB	55	4h
+108	If Tik Tok is forced to sell, what banks do you think would be involved in the deal?	IB	53	13m
+67	Updated LA Banking Scene (2024)	IB	49	14h
+38	Ranking banks that went under	IB	20	2h
+32	A strategy for SA applicants late to the game like myself	IB	15	6h
+32	Burnt Out M&A ASO	IB	17	3h
+31	UBS Actual Buyside Exits 2024 Post-Integration	IB	9	3d
+29	Relevance of A-Levels for U.K. London recruiting	IB	21	13h
+26	Series 79 Help / Tips to Pass The First Attempt	IB	11	1d
+25	Intern Ettiquette	IB	4	9h

1	redever	99.2
2	Secyh62	99.0
3	BankonBanking	99.0
4	Betsy Massar	99.0
5	kanon	98.9
6	CompBanker	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	Jamoldo	98.8
10	Linda Abraham	98.8

Financing Divisions - GM, Ford. Do They Borrow Money to Finance or Use Income Stream?

Trending Content