GM Financial originations fall 15.8%

GM Financial ’s originations declined in the first quarter as finance penetration dipped, while earnings before taxes were stable. Originations totaled $12.3 billion in Q1, down 15.8% year over year and 2.4% quarter over quarter , according to the captive’s April 28 earnings presentation. Loan and lease outstandings came in at $108.2 billion, down 0.9% YoY and 0.8% QoQ. GM Financial was the second-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels Rankings data . GM Financial’s retail loan share of U.S. General Motors sales fell 460 basis points (bps) YoY to 32.1% but rose 110 bps QoQ due to incentives, according to the presentation. General Motors’ incentives as a percentage of MSRP landed at 4.4% in Q1, down slightly from a year ago and below the industry average of 6.6%, according to the OEM’s earnings presentation. The average transaction price of a GM vehicle was $52,000, up 3% YoY, while dealer inventory declined 6% YoY to 516,000 units. GM’s sales declined 9.7% YoY to 626,429 units in Q1 , according to the OEM’s April 1 report. Lease originations down 20% U.S. lease originations decreased 20% YoY and 4.8% QoQ to $4 billion, primarily due to a slowdown in EV sales , according to the presentation. Outstanding residual value on GM Financial leases was $25 billion at the end of Q1, with EVs making up 22% of the total. “As part of our disciplined risk management, GM Financial regularly evaluates the estimated residual values and proactively adjusts depreciation accordingly,” General Motors Chief Financial Officer Paul Jacobson said during the April 28 earnings call. The lease portfolio increased 3.4% YoY but decreased 1.2% QoQ to $33.3 billion, according to the presentation. U.S. lease penetration was 16%, down 20 bps YoY but up 170 bps QoQ. The U.S. off-lease return rate rose to 33% in Q1 compared with 27% a year prior and flat QoQ. Delinquencies climb Credit performance in Q1 weakened YoY but improved from Q4, with 30- to 60-day delinquencies at 2.4%, up 20 bps YoY but down 30 bps QoQ, according to GM Financial’s presentation. The rate of loans more than 61 days past due was 0.9%, up 20 bps YoY but down 20 bps QoQ. Annualized retail net charge-offs sat at 1.5% compared with 1.2% a year prior and flat QoQ. The captive increased its coverage ratio for loan losses to 3.6%, up 40 bps YoY and 10 bps QoQ. Floorplan financing dips On the commercial front, GM Financial’s North American commercial finance portfolio decreased 7.1% YoY and 8.9% QoQ to $14.4 billion, according to the presentation. The captive’s U.S. floorplan finance penetration was 48.1% in Q1, up 50 bps YoY but down 40 bps QoQ. The number of U.S. dealers using the captive for floorplan increased to 2,001 compared with 1,984 in Q1 2025 and 2,022 in Q4 2025. EBT ticks up The lender’s earnings before taxes (EBT) tallied $688 million, up 0.4% YoY, according to the presentation. The captive projects EBT to reach between $2.5 billion and $3 billion in 2026. GM Financial paid a $650 million dividend to GM in Q1 compared with $350 million in Q1 2025. “We saw an opportunity in the first quarter ... to step up the dividend from our traditional level,” Jacobson said. Other metrics in Q1, according to the presentation, include: Ending earning assets down 1.7% YoY to $123.9 billion, in part due to a decline in commercial receivables linked to lower GM supply and decreased originations; Total debt of $111.8 billion, down 4.4% YoY in line with lower earning assets; and Available liquidity of $35 billion across cash, cash equivalents and borrowing capacity, down 7.4% YoY. General Motors, meanwhile, increased its expected earnings before interest and taxes projection to a range of $13.5 billion to $15.5 billion from the previous $13 billion to $15 billion on the heels of an expected $500 million tariff refund, according to its presentation. The Supreme Court in February ruled that some of President Donald Trump’s levies were illegal and ordered refunds. GM financial issues prime ABS deal On the funding front, for the calendar year, GM Financial forecasts public debt issuance of between $12 billion and $14 billion in securitization debt and between $8 billion and $10 billion in unsecured debt, compared with 2025 totals of $11.8 billion and $10.6 billion, respectively, according to the presentation. The lender last issued an asset-backed securitization (ABS) deal on April 8, a $1.3 billion prime transaction, according to CreditFlow , which monitors securities. This followed a $902.6 million subprime ABS deal on March 10 and a $955.1 million lease deal on Feb. 3. Year to date, GM Financial has issued about $4.4 billion in ABS transactions, according to CreditFlow. In Q1, ABS issuance totaled $3.1 billion. The lender also issued $1.4 billion in private securitizations during the quarter, according to the earnings presentation. GM Financial also received approval in January from the FDIC and Utah Department of Financial Institutions to form GM Financial Bank . Shares of General Motors Co. [NYSE: GM] were trading at $ 78.95 as of market close today, up 1.3 % from market open. General Motors has a market capitalization of $ 71 billion . Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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GM Financial originations fall 15.8%

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