Q3 Auto Originiations Up at Wells Fargo, Chase Auto Finance
Wells Fargo and Chase Auto Finance grew third-quarter auto originations by 10% and 19%, respectively, with a Wells Fargo official noting that new auto sales were at their highest levels in a decade.
SAN FRANCISCO and NEW YORK — Wells Fargo reported last week a 10% increase in third-quarter auto originations from a year ago, while Chase Auto Finance realized a 19% increase in originations from the year-ago period.
Wells Fargo’s third quarter auto originations, which were up 2% from the prior quarter, totaled $8.3 billion, with bank officials noting that new auto sales were at their highest levels in a decade.
“Auto loans were up $39 billion, or 7%, from last year,” said John Shrewsberry, Wells Fargo’s CFO. “We had record new originations in the third quarter … reflecting the strong auto market while we have remained disciplined in our approach.”
Wells Fargo’s net charge-off rate was 31 basis points of average loans, up slightly from the prior quarter due primarily to seasonally higher auto losses.
Auto originations for Chase Auto Finance grew to $8.1 billion in the third quarter, with officials noting that loans skewed toward the prime space.
Net income for Chase’s card, commerce solutions and auto finance divisions totaled $1.1 billion, a 6% decrease from a year ago, according to the company. Combined net revenue totaled $4.8 billion, a 2% increase. Additionally, noninterest expense for card, commerce solutions and auto rose 8% to $2.2 billion, driven by higher auto lease depreciation and higher marketing expense.
Chase stated that third-quarter results reflected a continued steady growth in new-vehicle sales and stable used-car values.
“We saw average loan and lease balances up 9% and the pipeline is good,” said Marianne Lake, JP Morgan Chase CFO. “Finally, on credit, the net charge-off rate for the quarter was 241 basis points, and we expect net charge-offs of around 250 basis points over the medium term.”
Overall, JP Morgan Chase reported net income of $6.8 billion, or $1.68 per share for the third quarter 2015 — an increase of22% from a year ago. Net revenue fell 6% to $23.5 billion.
Wells Fargo reported net income of $5.8 billion, or $1.05 per diluted common share — up 1% from a year ago. Revenue was up 3% at $21.9 billion.
Originally posted on F&I and Showroom
More Dealer Ops

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 →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
