Wells Fargo, Chase boost auto lending

Wells Fargo expects to keep its position as the No. 1 U.S. auto lender by volume as auto lenders report third-quarter results, CFO John Shrewsberry said Tuesday during a conference call reporting the company’s quarterly results.

Wells Fargo said its consumer auto loan originations were $7.6 billion in the third quarter, up 9 percent from the year-earlier period. Indirect auto loans outstanding -- that is, loans negotiated at dealerships -- were $52.2 billion, up 10.6 percent.

Chase Auto Finance said separately on Tuesday its consumer originations were $6.8 billion in the third quarter, up about 6 percent from a year ago.

“We’ve seen the 12th consecutive quarter of loan and lease growth despite a very competitive market,” Marianna Lake, CFO for JPMorgan Chase & Co., said during the company’s conference call.

While Chase’s originations rose, the increase was below the rise in U.S. light-vehicle sales in the third quarter. Sales were up 7.9 percent in the third quarter to about 4.3 million units, Automotive News Data Center numbers show.

Wells Fargo was No. 1 in new and used auto loans combined in the second quarter, according to Experian Automotive. That was the fifth quarter in a row Wells Fargo was No. 1, starting when Wells Fargo overtook former top lender Ally Financial in the second quarter of 2013.

Wells Fargo Dealer Services is the perennial No. 1 in used-car loans. But it has also added share in new-vehicle financing, partly because General Motors uses Wells Fargo as a preferred lender for incentivized loans. The bank’s GM relationship began on a regional basis in 2011. Since September 2013, the partnership has included the entire country.

You can reach Jim Henry at autonews@autonews.com

25

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters