Auto loan and lease outstandings reached an all-time high of $1.3 trillion in 2021, contributing to the auto finance industry’s 6.7% growth despite ongoing inventory challenges due to the COVID-19 pandemic.
Total loan and lease originations grew 8.8% in 2021, with the nation’s top 100 auto lenders originating nearly $690 billion, according to the Big Wheels Auto Finance Data 2022 report. The report is now available and ranks the top 100 auto financiers in the United States by outstandings and originations.
In 2021, Toyota Financial Services again led the pack with $100.5 billion in receivables, down about 1% YoY. GM Financial, Ally Financial, Chase Auto and Capital One Auto round out the top five financiers, starting with the largest based on volume. Notably, GM Financial jumped to the No. 2 auto lender from the No. 3 spot in 2020, and Chase Auto fell to the No. 4 spot from the No. 2 spot in the previous year.
Leasing, on the other hand, continued a downward trajectory for the second consecutive year. Leases accounted for 22.1% of total outstandings in 2021, compared with 23.6% in 2020, largely due to a lack of new-vehicle inventory pushing up used-vehicle values, according to Big Wheels. In total, 25 financiers funded $293 billion leases in 2021, with the majority from captives.
The 2022 report provides an in-depth glimpse of inventory trends by breaking out the percentage of financing volume for new vehicles and providing rankings of the top 100 originators by total new- and used-vehicle volume. Toyota Financial Services, for example, reported that 73% of originations were for new vehicles.
Additionally, the Big Wheels report includes data from a phone survey of customer service representatives at the nation’s 200 largest financiers. The reps were polled about whether a consumer could secure an auto loan with a credit score below 650 — typically deemed a “nonprime” loan — or below 550, which is generally considered a “subprime” loan. The results offer Big Wheels subscribers a more comprehensive view of financiers in the market.
The Big Wheels Auto Finance Data 2022 report is now available at www.BigWheelsData.com.