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ReprintsAlly gains share in leasing, used-car finance
Ally Financial Inc., the former finance arm of General Motors, is taking back some of the market share it lost during the credit crisis.
The company, which became a bank holding company in December 2008, ranked No. 1 in overall retail loan volume in the United States, Ally told analysts during its Aug. 2 second-quarter earnings call. The rankings are from research firm Experian Automotive.
A year ago, Ally was No. 2 behind Toyota Financial Services. At that time, Ally was just the highest volume lender for new-vehicle loans.
Ally has made strides in two critical areas: vehicle leasing and used-vehicle financing.
The company improved its share of the used-vehicle finance market from a year ago -- moving up slightly to 2.5 percent -- while the other top used-vehicle lenders lost share. Ally ranked second in used-vehicle finance in the second quarter of 2011, up from fourth place in 2010.
As GMAC, Ally had ranked first among vehicle lessors before the credit crisis. But when credit was tight, GMAC's liquidity suffered and leasing declined to almost nothing.
But in the second quarter this year, Ally bounced back into the No. 3 spot behind American Honda Finance and Toyota Financial Services.
A year ago Ally was in sixth place, with a 5.26 percent share of the auto leasing business. In third place, it has 9.9 percent of the market.
Ally has edged ahead, even as automakers cut back on sales incentives, by offering its own incentives.
For example, from July 21-Aug. 1 this year, Ally, the preferred lender for GM and Chrysler Group brands, reduced the administration fee for leases on some GM and Chrysler models. On the 2011 GMC Yukon, the standard administration fee is $795; via Ally, it dropped to $200.
Ally spokeswoman Sue Mallino said the Ally-sponsored program could lower a customer's lease payment by $10 to $20 a month.
