Ally Financial, one of the largest banks in auto lending with an $80 billion portfolio, has announced its support for its dealer and consumer customers in the wake of the heightened negative impact of the COVID-19 pandemic, Auto Finance News has learned.
Ally’s new borrowers will have the option to defer their first payment for 90 days. Additionally, Ally is also offering existing customers to defer payment for up to 120 days, with no late fees charged.
In terms of incentives, Ally has not yet detailed offerings for dealers or consumers as the bank closely monitors the fluid situation.
“Ally is working closely with its network of approximately 18,000 dealers to navigate changing market dynamics, assess their specific needs and develop individualized solutions,” the lender noted in a statement. “This includes offering consumer incentives that help dealer customers, as well as specific solutions to help dealers with their loan funding needs.”
Further, Ally is “making its dedicated credit and funding staff available to dealers as needed to provide fast and efficient funding options that help them maximize used and new vehicle sales,” the company noted.
Fellow big bank Capital One is allowing borrowers to skip payments, interest free, for auto loans, according to published reports. Other banks including Bank of America, Chase, Santander Consumer USA and Wells Fargo, have posted COVID-19 information centers for customers on the banks’ websites.
However, there have been no official announcements yet as to how the big banks will offer relief to support affected auto dealers and consumers.