Chase 4Q16 Auto Originations Drop 14% YoY

Chase Auto Finance ended 2016 on a decline – as far as auto originations went. The company originated $8 billion in auto loans and leases in 4Q16, compared with $9.3 billion in the previous quarter, and down from $9.2 billion at the same time a year prior – a 13% drop —  the company announced today.

For comparison purposes, Chase’s auto originations were up 14% YoY in 3Q16.

The drop in originations is despite 2016’s record-breaking 17.55 million auto sales. However, the all-time high auto sales are part of a broader indication that the economy is reaching a “momentum,” JPMorgan Chase & Co.’s Chief Executive Jamie Dimon, said during the bank’s fourth quarter earnings call, also today.

The company also debuted a direct, digital car-buying service — Chase Auto Direct — in 3Q16, but did not break out the product’s performance in its earnings.

The 30+ day delinquency rate for auto was at 1.19% in 4Q16, compared with 1.35% at the same time a year prior – however the rate was up from 1.08% in 3Q16. Allowance for loan losses were unchanged quarter over quarter at $474 million, and up from $399 at the same time a year prior.

Meanwhile, the net charge off rate was 0.57%, up from 0.50% at the same time a year prior.