Steady improvements in the economy, ample availability of consumer credit, and pent-up demand have created momentum in the market, according to Ally Financial. As such, the lender is increasing wholesale credit lines in the hopes that dealers will take advantage of that momentum.
In the first quarter, Ally expanded wholesale limits for more than 40% of its U.S. dealer clients.
“The flexibility in our credit line administration not only supports dealers, but also aligns with accelerated manufacturer production levels,” said Bill Muir, president of Ally Financial. “We are seeing strong demand for increased inventory financing for both new and used vehicles as dealers seek to fully stock their lots and maximize their sales potential.”
The company is also increasing its U.S. underwriting team by 15% from yearend staffing levels to accommodate the greater volume of consumer financing applications.
The consumer underwriting teams now work seven days a week, with extended hours Monday through Saturday, Muir said. Strategic hiring has started in key cities across the country: Atlanta; Charlotte, N.C.; Chicago; Costa Mesa, Calif.; Detroit; Jacksonville, Fla.; Pittsburgh; and Lewisville, Texas.
In the U.S., Ally financed $9.7 billion of consumer auto sales in the first quarter. It had an average of $26 billion in dealer wholesale financing outstanding, up 10% from the prior-year period.
