Captive finance companies gained share in the third quarter, to 51.6% of new-vehicle loan originations.
That was the highest captive share since the recession, and up from 50.2% a year ago, according to Experian Automotive, which reported third-quarter results on Wednesday.
The last time captives were so high for the third quarter was in the third quarter of 2008 at 53.8%, said Melinda Zabritski, senior director of automotive finance. At the time, captive share was high because General Motors had kicked off “Employee Pricing for Everyone” and other captives followed.
This year, some captives ran big incentive deals in the third quarter, such as 0% offers via Ford Credit in August and part of September. Ford Credit was No. 1 in new-vehicle loans in the third quarter with 10% share, up from 9.1% a year ago, Experian said.
Besides the lion’s share of new-vehicle loans, captives also dominate leasing. For the third quarter, leasing for the whole industry accounted for a record 26.93% of new-vehicle volume, up just 1 basis point from a record 26.92% in the second quarter, Experian said.
Banks were No. 1 in used-car loans in the third quarter, and credit unions were No. 2. Banks were No. 2 in new-vehicle loans, with about one-third share. However, most banks don’t even offer leasing.
Captives accounted for 77% of new-vehicle leasing for the third quarter, Zabritski said. Banks that provide private-label leases for OEMs, like Chase Auto Finance, accounted for almost all the rest, she said.
