In the first half of 2008, Toyota Financial Services replaced longtime leader GMAC Financial Services as the biggest U.S. auto lender, a new study suggests.

The shifts in the captives' rankings reflect changes in the relative financial health of their parent companies. Automakers use their captives to provide consumer incentives that greatly affect their dealers' ability to sell new and used vehicles.

AutoCount, a research unit of the Experian Automotive marketing information company, estimates Toyota Financial had a 6.35 percent share of the U.S. market for vehicle finance and lease contracts from January through June, compared with 6.20 percent for GMAC. The study does not provide figures on contract volume.

Because GMAC has made major cutbacks in U.S. auto leasing this summer, Toyota's captive finance company could remain ahead of its General Motors competitor for all of 2008, the AutoCount study suggests.

GMAC spokeswoman Sue Mallino says the company is still No. 1 when two wholly owned subsidiaries are included in its U.S. market share. GMAC's first-half share, combined with those of Nuvell Credit Corp. and National Auto Finance Co., was 6.72 percent, according to the AutoCount study.

AutoCount's calculation of Toyota Financial's market share does not include lending by World Omni Financial Corp. World Omni provides captive financial services to dealerships in the five states served by Southeast Toyota Distributors LLC. AutoCount estimates World Omni has a 0.75 percent U.S. market share.

Finance rates

In the first six months of this year, Toyota Financial says it financed about 58 percent of new Toyota, Lexus and Scion vehicles sold at U.S. dealerships.

In the same period, GMAC says it financed about 46 percent of new GM cars and trucks sold in North America. GMAC declined to separate U.S. and Canadian sales data.

AutoCount bases its lender rankings on registration data from state motor vehicle departments, including the names of lien holders. Four states and the District of Columbia do not provide lender information, the company notes.

The 10 largest lenders in the AutoCount study include six captives and four independent banks.

The captives of GM, Ford Motor Co. and Chrysler LLC traditionally have led lists of U.S. auto lenders. But in the past three years, the domestic captives' market shares have eroded as Detroit 3 new-vehicle sales have declined.

At the same time, import-brand captives' shares of the U.S. finance market have grown. Rapidly rising fuel prices and a slumping U.S. economy have accelerated the trend this year, as buyers have turned to fuel-efficient vehicles and away from the big trucks that have been Detroit 3 profit centers.

Dealer relations

Mike Groff, group vice president of Toyota Financial, says his company is "spending a lot of time building our relationships with our dealers through a lot of different programs.

"Our share has been increasing over the last few years and has remained very solid this year," Groff told Automotive News. "We have put a lot of energy and time into customer loyalty."

Independent banks also have worked to increase their shares of the U.S. auto lending market, as Detroit 3 captives have struggled with declining credit ratings and rising costs of funds.

In the first six months of 2008, the AutoCount study says, Chase Auto Finance became the No. 3 lender, passing Ford Motor Credit, now No. 5. Wachovia Dealer Services passed Chrysler Financial Services to become No. 6.

American Honda Finance Corp., No. 4 overall, benefited from an enhanced focus on leasing. The Honda captive was the second-largest auto lessor in the first half of the year, trailing only GMAC, AutoCount says.

Toyota Financial passed DaimlerChrysler Financial Services as the No. 3 lender in the AutoCount rankings in 2006. Last year, the Toyota captive bumped Ford Credit from the No. 2 spot.