Last year hurt, but 2010 likely will not.
2009 will go down as one of the worst years for auto finance, according to the newly released 2010 Auto Finance Big Wheels report. However, the report, which for the first time includes a forecast for 2010 performance, indicates that auto finance should rebound this year — at least somewhat.
Specifically, auto finance outstandings contracted 10% last year, outpacing the 6.8% drop in outstandings in 2008. Origination performance was even darker, falling 28.9% year-over-year and outdoing the 23.1% drop in originations in 2008.
Auto Finance Big Wheels is the only report that tallies auto finance originations and outstandings. The report ranks the Top 100 auto lenders and lessors, includes comprehensive contact information for each, and, for the first time this year, includes a forecast for 2010 originations. Auto Finance Big Wheels is published by Auto Finance News and AutoFinanceNews.net.
According to the report, “though new-vehicle sales have gotten off to a slow start in 2010, higher anticipated volume should prop up loan and lease originations. Also, as the unemployment rate inches lower, delinquency rates will come down, further improving industry fundamentals in 2010.”
Taking the No. 1 spot in auto finance in 2009 was Ford Motor Credit Co., even though its portfolio shrank 18.3% year-over-year to $72.1 billion, according to Auto Finance Big Wheels. GMAC, Toyota Motor Credit Co., Chase Auto Finance, and Bank of America Dealer Financial Services rounded out the Top 5.
For more information about the report, click here.
