Although Exeter Finance’s portfolio has grown 19% through midyear, the portion of originations stemming from CarMax dealerships has remained steady, according to a pre-sale report from Standard & Poor’s.
Exeter’s portfolio hit $5.1 billion as of June 30, up from $4.3 billion at the end of 2018. Yet the ratio of CarMax loans in Exeter’s securitizations has hovered around 24% this year, according to S&P. By comparison, in the earlier days of the CarMax partnership — inked back in 2014 — that ratio reached as high as 35%.
Exeter is one of seven companies — aside from captive CarMax Auto Finance — to provide financing to the dealership chain’s used-car buyers. The others are Ally Bank, American Credit Acceptance, Capital One Auto Finance, Santander Consumer USA, Wells Fargo Auto and Westlake Financial Services.
CarMax Auto Finance’s originations, meanwhile, climbed 19% last year to $7.1 billion, according to Big Wheels Auto Finance 2019. The average credit score in CarMax securitizations for the past few years has been 707, according to S&P.
Here’s a look at how the ratio of CarMax loans have stacked up in Exeter’s securitizations since 2014, per S&P data:
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