Third-quarter volume surged for two of the biggest banks in auto lending, including a 29% increase in outstanding leases at JPMorgan Chase & Co., and record loan originations at Wells Fargo & Co.
“In auto, results continued to reflect steady growth in new-vehicle sales and stable used-car values,” said JPMorgan Chase Chief Financial Officer Marianne Lake. “We saw average loan and lease balances up 9%, and the pipeline is good.”
Chase Auto Finance provides leases for Subaru, Mazda, and Jaguar-Land Rover. U.S. sales are especially hot for Subaru and Land Rover this year.
Chase loan and lease originations combined were $8.1 billion in the third quarter, up 19% from a year ago. Outstanding loans were up 7% to $56.4 billion. Outstanding leases were up 29%, to $8.1 billion, Chase said on Tuesday.
Wells Fargo reported a 10% increase in originations in the third quarter, to $8.3 billion. Outstanding auto loans were $59.2 billion, an increase of 7% from a year ago, the bank said on Wednesday.
Wells Fargo Chief Financial Officer John Shrewsberry said the increase reflects the strong auto
market in general. The bank has “remained disciplined in our approach,” he said in a conference call.
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