GM Financial: More Loans, Fewer Leases in Q3
GM Financial reported increases in loan originations and reduced delinquencies and charge-offs, but lease originations fell $2.3 billion from the first three quarters of 2017.
Photo by Sahmeditor via Wikimedia
FORT WORTH, Texas — General Motors Financial Company Inc. reported net income of $441 million for the quarter ended Sept. 30, 2018, compared to $442 million for the quarter ended June 30, 2018, and $202 million for the quarter ended Sept. 30, 2017. Net income for the nine months ended Sept. 30, 2018, was $1.3 billion, compared to $466 million for the nine months ended Sept. 30, 2017.
Retail loan originations were $6.7 billion for the quarter ended Sept. 30, 2018, compared to $6.0 billion for the quarter ended June 30, 2018, and $4.7 billion for the quarter ended Sept. 30, 2017. Retail loan originations for the nine months ended Sept. 30, 2018 were $17.8 billion, compared to $15.5 billion for the nine months ended Sept. 30, 2017.
The outstanding balance of retail finance receivables, net of fees, was $37.9 billion at Sept. 30, 2018. Operating lease originations were $5.4 billion for the quarter ended Sept. 30, 2018, compared to $6.2 billion for the quarter ended June 30, 2018, and $6.5 billion for the quarter ended Sept. 30, 2017.
Operating lease originations for the nine months ended Sept. 30, 2018 were $17.3 billion, compared to $19.6 billion for the nine months ended Sept. 30, 2017. Leased vehicles net was $44.1 billion at Sept. 30, 2018. The outstanding balance of commercial finance receivables, net of fees was $11.1 billion at Sept. 30, 2018, compared to $10.7 billion at June 30, 2018 and $9.5 billion at Sept. 30, 2017. Retail finance receivables 31 to 60 days delinquent were 3.4% of the portfolio at Sept. 30, 2018 and 3.6% at Sept. 30, 2017.
Accounts more than 60 days delinquent were 1.3% of the portfolio at Sept. 30, 2018 and 1.6% at Sept. 30, 2017. Annualized net charge-offs were 1.7% of average retail finance receivables for the quarter ended Sept. 30, 2018 and 1.9% for the quarter ended Sept. 30, 2017. For the nine months ended Sept. 30, 2018, annualized retail net charge-offs were 1.8%, compared to 1.9% for the nine months ended Sept. 30, 2017.
Originally posted on F&I and Showroom
More Dealer Ops
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →