Big Wheels: Outstandings hit record $1.2T despite slowdown

The auto finance market eked out 4.6% in growth in 2019, as loan and lease outstandings hit an all-time high of $1.2 trillion, buoyed by a strong economy, solid lending metrics and innovation investments, according to the newly released Big Wheels Auto Finance Data Report.

Big Wheels is the nation’s only ranking of the top 100 auto financiers in the U.S. by outstandings and originations.

Toyota Financial Services nabbed the top spot for the fourth straight year, ending 2019 with $94.4 billion of loans and leases outstanding and $46.3 billion of originations. Chase Auto, Ally Financial, GM Financial, and Ford Motor Credit rounded out the top five by outstandings.

Though a couple banks exited the space last year, captives, credit unions and finance companies picked up the slack and increased originations despite a 1.2% decline in new-vehicle sales. In fact, originations increased 8.5% last year, the highest growth rate since 2015.

Meanwhile, finance companies that cater to consumers with tarnished credit histories picked up the lending pace quickest last year.

“Financiers last year leveraged innovative alliances and investments in fresh technology to grow their portfolios and control losses despite a slowdown in vehicle sales,” said Marcie Belles, Vice President of Auto Finance at Royal Media, and author of the report. “Yet, in light of the COVID-19 pandemic, the industry is on track for a ‘new normal’ in vehicle sales and finance.”

Given that the report was prepared during the middle of one of the worst crises ever faced by the industry, the report includes a forecast that maps the trajectory for auto finance in 2021 and beyond.

“The COVID-19 pandemic could very well erase all the auto finance gains recorded in the past decade,” Belles said. “We are bound to see lenders shutter operations amid rising unemployment and excessive losses. Yet those financiers that develop creative auto finance solutions and take online lending to the next level are poised to grow in the post-pandemic era.”

Released today, the Big Wheels Auto Finance Data Report is the nation’s only ranking of the Top 100 auto financiers in the United States by outstandings and originations. The report features a one-of-a-kind data tool that allows users to access 12 years of historical data. The data tool includes functionality that enables users to filter, sort, analyze year-over-year, and export outstandings and originations data.

The 2020 Big Wheels Auto Finance Data Report is available at www.BigWheelsData.com.