Auto loan originations continue to rise at two of the nation’s largest auto lenders thanks to a favorable new-car market.
Chase Auto Finance and Wells Fargo each reported double-digit growth in the third quarter compared with the year-earlier period.
Auto originations at Chase Auto Finance rose 19 percent in the third quarter vs. the 2014 period, to $8.1 billion, JP Morgan Chase said.
This is at least the fourth consecutive quarter of auto loan originationgrowth at Chase. Auto originations stood at $6.8 billion in the third quarter of 2014.
Chase reported $57.2 billion in outstanding auto loans at the end of the third quarter, up 8 percent from $52.8 billion in 2014.
JP Morgan Chase CFO Marianne Lake said in a conference call Tuesday that the loan results are a product of U.S. new-vehicle sales growth and stable values in the used-car market. “The pipeline is good,” Lake said.
At Wells Fargo, auto originations grew at a 10 percent clip in the third quarter from a year earlier, to $8.3 billion, the bank reported Wednesday.
Total outstanding auto loans at Wells Fargo stood at $59.2 billion at the end of the third quarter, up 7 percent from the 2014 period.
“We remained disciplined in our approach,” CFO John Shrewsberry said of Wells Fargo’s loan growth during the company’s earnings conference call Wednesday morning.
U.S. new light-vehicle sales rose 6.2 percent in the third quarter to 4,530,226 units, according to the Automotive News Data Center. U.S. sales are on track to surpass 17 million in 2015, marking only the third time industry volume has topped 17 million in a year. And some analysts, citing robust growth in recent months, believe the industry has a shot this year at breaking the record 17.4 million set in 2000.