3 major US lenders see booming auto sales
Last week, several major US auto lenders posted historic first quarter results, citing voracious customer demand despite limited inventory.
Auto loan and rental creations jumped 35% at Chase Auto to $ 11.2 billion, with the company registering the most auto creations in its history in March. Wells Fargo Auto increased origins 7.7% to $ 7 billion. Ally Financial posted its highest auto assembly volume in five years with $ 10.2 billion in loans and leases.
Like its competitors, Ally’s first quarter results benefited greatly from year-over-year comparisons with the first quarter of 2020 which was hit the hardest by the impact of the COVID pandemic. 19. But Doug Timmerman, president of auto finance at Ally, pointed out that the strength of the company still far exceeded first quarter 2019 results.
“As we go into the second quarter we see this continue,” said Timmerman. Automotive news. “A significant flow of apps and creatives. We are confident that we will be on top of 2019 in the second quarter, as well as for the entire year.”
Timmerman said Ally’s dealer partners also reported record profits on vehicle sales and were impressed with their sales volume despite inventory hurdles related to the chip shortage.
“Obviously not at the high inventory levels they’ve had, or the inventory levels they would like, but they feel very good that the second quarter will be good,” he said, “ and we share that trust. ”