General Motors Financial Services reported a slight leveling off of its lease portfolio in the third quarter, as North American lease origination volume remained relatively flat at nearly $6.113 billion in 3Q, compared with $6.161 the same period last year, according to an earnings report.
This slight dip comes after two quarters of soaring year-over-year growth of 127% in Q1 and 121% in Q2, which means year to date the company’s lease portfolio is still up 30.66% compared to the same nine-month period a year prior in North America.
Daniel Berce, president and chief executive of GM Financial, said the continued increase was due to the company’s announcement in 2015 that its captive would be the exclusive provider of lease and subvented program incentives.
“Our lease volumes have continued to grow since the exclusivity kicked in,” Berce said in an earnings presentation. “Our leasing activity depends to a great extent on the sales mix of GMs volume with respect to lease vs. loan, nevertheless (we saw) strong volumes again this quarter driving our total lease portfolio in the U.S. and Canada up to $31.6 billion.”
U.S. retail loan originations grew 6.3% year over year to $3.36 billion, bringing combined U.S. loan and lease originations to $9.47 billion up from $9.31 billion at the same time the year prior.
Delinquencies 31 to 60 days past due in North America dropped to 4.9% from 6.8% the year prior, while delinquencies greater than 60 days decreased to 1.9% from 2.1% YoY. North American charge offs increased to $253 million compared to $221 million last year.
