Indirect auto lending giant Ally Financial expects inventory shortages to persist in 2022 but predicted another strong year of auto loan applications received and amounts borrowed, CFO Jenn LaClair said Oct. 21.
Ally plans to issue more detailed predictions later, LaClair told analysts, but "we're still expecting to see really robust application flow and robust origination."
LaClair said originations would likely be in the $40 billion range next year.
Ally posted $12.3 billion in auto loans in the third quarter and $35.4 billion in auto loan originations through September. In just nine months, Ally already is $300 million ahead of 2020's full-year result and close to the $36.3 billion worth of originations in all of 2019.
"Auto continues to perform exceptionally well," LaClair said. "We don't see any sign of that stopping."
Market trends favored Ally, and the company continued to grow share, LaClair said.
CEO Jeffrey Brown said Ally's auto loan business delivered "our highest third-quarter in 15 years, at a really impressive 7.1 percent yield." LaClair said Ally was on track for 2021 to end as the company's fourth straight year of auto yields above 7 percent, and the company expected loans to produce a "robust" yield next year.