Among bank auto lenders, Chase Auto Finance has tied Ally Financial as the top lender in the space for the first time since Ally became a bank holding company in 2008, according to full year earnings reports from the companies, compiled by Nasdaq.
Both banks virtually tied for total originations on the year at $65.8 billion but Chase had an edge in compound annual growth rate percentage (CAGR) at 5.7%, and Ally at 4.1%, the compiled data revealed.
Banks in general only make up 35.6% of all U.S. auto loans compared to captive arms, credit unions and other financiers, according to Experian’s 4Q16 report.
Five banks — Chase, Ally, Wells Fargo Dealer Services, Capital One Auto Finance, and Bank of America Dealer Service — make up 25% of all U.S. auto loans, which means those five account for about 70% of the market share among commercial banks, their earnings show.
Experian, in a report released earlier this week, also outlined a number of industry trends, including:
- Credit Unions experienced the largest year over year growth to $39 billion open auto loans in the fourth quarter, up from $33 billion during the same quarter the year prior.
- Across the spectrum, deep subprime loan balances grew by 14.5% — the largest year over year balance change by credit segment
- Overall market 30-day delinquencies remained flat when compared to 4Q15, but loans 60-days past due grew to 0.78% of the overall market, up from 0.74% the year prior.
- New and used mixes in the market remained relatively flat, while leasing continued to rise.
- Average loan amounts have reached record highs. For example, the average prime and super prime used loan clocked in at $20,000 while new vehicle loans averaged over $30,000 for prime and nonprime consumers.
- The average new vehicle loan term ticked up slightly to 68 months, from 67 the year prior. Used loan terms stayed relatively flat, but more prime consumers are gravitating to the used market.