Chase’s Q3 Auto Originations Up 6%
Chase Auto Finance originated $6.8 billion in auto loans during the third quarter, which was up from a year ago but down 4% from the second quarter. Average auto loans were $52.7 billion, up 4% from a year ago.
NEW YORK — JP Morgan Chase reported today that its auto finance business unit grew auto originations in the third quarter 6% from a year ago to $6.8 billion. On a quarter-over-quarter basis, however, originations were down 4%.
The bank’s average auto loans were $52.7 billion, up 4% from a year ago but down slightly from $52.8 billion in the second quarter.
The bank’s card, merchant services and auto segment posted net income of $1.1 billion, a $120 million decrease from a year ago. The decrease was driven by higher provision for credit losses. But despite its net charge-off rate for auto loans increasing from 0.35% in the year-ago period to 0.38%, Chase posted a $100 million reduction in the allowance for auto and student loan losses.
Non-interest expense for the bank’s card, merchant service and auto division increased $77 million from a year ago to $2 billion. The increase was predominantly driven by an accrual related to Home Depot fraud and higher auto lease depreciation expense.
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →