In the past two years, direct loans have dropped to 12%, from 19%, of Wells Fargo Dealer Services’ portfolio. Even so, the overall portfolio has grown 39% during that time.
Wells Fargo’s auto portfolio closed the year at $39.3 billion, up from $32.2 billion at yearend 2009.
While indirect auto loans have been growing, the direct auto-loan portion of the portfolio has been on the decline. Last quarter, direct auto loans comprised $4.8 billion of the overall portfolio. That’s down from $5.4 billion of a $28.2 billion portfolio at yearend 2008.
Meanwhile, the quarter-to-quarter 30-day delinquency rate fell 15 basis points, to 4.69%, in the direct portfolio; it climbed 4 basis points, to 1.74%, in the indirect portfolio.
Here’s a look at Wells Fargo’s auto portfolio (in billions):
Another thing – compliance with this rule is required by Jan 1, 2011. That deadline is almost here. Dealers that I have talked with think that the rule is just another waste of taxpayer dollars (which I agree with as well), bet federal law is federal law. I am waiting to read the official response from NADA to the dealer body.