GM Financial Grows Retail Loan Originations 87% in 1Q | Auto Finance News | Auto Finance News

GM Financial Grows Retail Loan Originations 87% in 1Q

GM Financial’s booth from NADA Convention & Expo 2017. (Photo by William Hoffman)

General Motors Financial Co. grew total North American originations by 19% in the first quarter compared to the same period a year prior, driven by an 87% increase in its retail loan portfolio, the company reported in its first-quarter earnings filing.

The captive originated $11 billion in auto loans and leases combined, up from $9.3 billion in the first quarter 2016. GM Financial’s North American portfolio totaled $24.35 billion at quarter’s end up from $18.8 billion during the same time last year —  a 29.5% increase.

North American lease originations were down 6.8% year over year, to $6.26 billion, while loan originations nearly doubled to reach $4.8 billion in the first quarter, from $2.6 billion at the same time a year prior.

For the second quarter in a row, GM Financial saw a reduction in delinquencies. Total Loan delinquency made up 4.9% of ending retail finance receivables, down from 6.1% in the first quarter 2016.

Charge-offs, however, continue to rise. The captive charged off $131 million in the first quarter — a 9.16% increase year over year. However, as a percentage of the portfolio, charge-offs are decreasing, coming in at 2.3% of average loans and leases, from 2.6% the year prior.

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4 thoughts on “GM Financial Grows Retail Loan Originations 87% in 1Q

  1. […] only looked at GM Financial’s origination volume last week, you would think auto finance was continuing on its boom-time […]

  2. […] only looked at GM Financial’s origination volume last week, you would think auto finance was continuing on its boom-time […]

  3. […] in the quarter, up from $3.2 billion during the prior-year period. This comes on the heels of an 87% increase in retail originations in the first […]

  4. […] in the quarter, up from $3.2 billion during the prior-year period. This comes on the heels of an 87% increase in retail originations in the first […]