DETROIT -- Used-vehicle origination volume reached a record high for Ally Financial Inc. in the first quarter, signaling continued opportunities for the lender in the used-vehicle market as new-vehicle sales flatten.
"We like the profitability on used," Jenn LaClair, who became CFO last month, said last week during the company's call with analysts. "It is a place where we feel the competition is fair. Look at some of the tails in the subprime and superprime, and it does get a bit crowded there."
Used-vehicle loan originations made up half of Ally's origination volume in the first quarter. Auto loan and lease originations at Ally, one of the largest auto lenders in the U.S., climbed 6.7 percent to $9.5 billion in the quarter, largely driven by record high used-vehicle loan volume of $4.8 billion.
Leases made up 11 percent of originations -- $1 billion -- and new-vehicle loans accounted for 39 percent of originations at $3.6 billion.
Ally remains focused on full-spectrum lending, LaClair said during the call. More than 80 percent of Ally's first-quarter originations were to superprime, prime or near-prime borrowers with credit scores of 620 or higher.
Ally has more than 18,000 dealership partners industrywide, LaClair said. Ally's growth channel, consisting of franchised dealerships that sell brands other than Chrysler or those from General Motors, made up 44 percent of originations in the first quarter, up 4 percentage points. The Chrysler channel accounted for 26 percent, down 2 percentage points, and the GM channel made up 30 percent, down 2 percentage points.