EXHIBIT 5

July 26, 2001

American General Finance Corporation
601 N.W. Second Street
Evansville, Indiana 47708

Ladies and Gentlemen:

    This opinion is furnished in connection with the proposed issuance and sale
by American General Finance Corporation, an Indiana corporation (the "Company")
of up to $3,500,000,000 aggregate principal amount of its debt securities (the
"Debt Securities") pursuant to:

    (a) The Company's Registration Statement on Form S-3 relating to the Debt
       Securities (the "Registration Statement"); and

    (b) The Indenture, dated as of May 1, 1999, between the Company and
       Citibank, N.A. ("Citibank"), as Trustee, pursuant to which the Debt
       Securities are to be issued (the "Indenture").

    I am Senior Vice President, General Counsel and Secretary of the Company,
and am familiar with and have examined, either personally or through attorneys
under my supervision, direction and control, originals or copies certified to my
satisfaction, of the Registration Statement, the Indenture, the Restated
Articles of Incorporation and bylaws of the Company and such other corporate
records, certificates of corporate officials as to certain matters of fact, and
instruments and documents as I have deemed necessary or advisable as a basis for
the opinions set forth herein.

    In such examination, I have assumed the genuineness of all signatures (other
than the signatures of persons signing on behalf of the Company), the
authenticity and completeness of all documents, certificates, instruments and
records submitted as originals and the conformity to the original instruments of
all documents submitted as copies, and the authenticity and completeness of the
originals of such copies. In addition, in rendering this opinion, as to certain
matters of fact, I have relied solely upon certificates of officers of the
Company and certificates or telegrams of public officials, without any
independent investigation of such matters.

Based upon the foregoing, I am of the opinion that:

1.  The Company is existing as a corporation under the laws of the State of
    Indiana.

2.  When the issuance of a Debt Security has been duly authorized by all
    necessary corporate action of the Company as contemplated by the Indenture,
    subject to the terms of such Debt Security being otherwise in compliance
    with then applicable law, and when such Debt Security has been duly
    executed, authenticated, sold and delivered in the form approved pursuant to
    and in accordance with the terms of the Indenture and as described in the
    Registration Statement, which Registration Statement shall have become
    effective, the supplement or supplements to the Prospectus constituting a
    part thereof and, if applicable, such agreement or agreements as may have
    been duly authorized and executed in connection with the sale of such Debt
    Security, such Debt Security will be a valid and binding obligation of the
    Company, enforceable against the Company in accordance with its terms,
    except that (a) enforcement thereof may be limited by bankruptcy,
    insolvency, fraudulent conveyance, reorganization, moratorium or other laws
    of general applicability relating to or affecting enforcement of creditors'
    rights or by general equity principles and (b) the remedy of specific
    performance and injunctive and other forms of equitable relief may be
    subject to equitable defenses and to the discretion of the court before
    which any proceeding therefor may be brought. To the extent that the
    obligations of the Company under such Debt Security may be dependent upon
    such matters, I assume for purposes of this opinion that Citibank is a
    national banking association at all times duly incorporated, validly
    existing and in good standing under the laws of the jurisdiction of its
    incorporation with full power and authority to

American General Finance Corporation

July 26, 2001

Page 2

    enter into and perform its obligations under the Indenture, and the
    Indenture, at the time of the issuance and sale of such Debt Security, will
    constitute the valid and legally binding obligation of Citibank, enforceable
    against Citibank in accordance with its terms.

    The laws covered by the opinions expressed herein are limited to the laws of
the State of Indiana and, with respect to the opinions expressed in paragraph 2
above, the laws of the State of New York.

    I consent to the filing of this opinion as an exhibit to the Registration
Statement and to the reference to me under the heading "Legal Opinions" in the
prospectus included in the Registration Statement. In giving such consent, I do
not admit that I come within the category of persons whose consent is required
under Section 7 of the Securities Act of 1933, as amended, or the rules or
regulations of the Securities and Exchange Commission thereunder.

    This opinion is for the sole benefit of the addressee and, without my
express prior written consent, may not be relied upon by any other person.

Very truly yours,

/s/ TIMOTHY M. HAYES

Timothy M. Hayes
Senior Vice President, General
Counsel and Secretary