Capital One Bank and GM Financial both said this week they are continuing to grow auto finance. The companies' moves are in contrast with banks that are cutting back on auto loans.
Capital One Chairman Richard Fairbank said his bank is taking advantage of the fact that others are dialing back. "Competitive intensity in the auto finance marketplace remains a bit muted, which continues to contribute to our growth," he said in a conference call on Tuesday.
Auto loan originations for Capital One, of McLean, Va., were $7.04 billion in the third quarter, up 4 percent from a year ago. Through the first three quarters this year, Capital One's originations were up 12 percent vs. a year earlier to $21.5 billion.
General Motors captive GM Financial, of Fort Worth, Texas, also reported third-quarter results on Tuesday. Total retail originations, including loans and leases, for GM Financial were $11.2 billion in the third quarter, up 9.3 percent from a year ago. For the first three quarters all told, GM Financial originations were up 18 percent to $35.1 billion.
"The big increase was in financing GM vehicles sold by GM dealers," said GM Financial CEO Dan Berce. GM Financial accounted for 36 percent of GM's U.S. retail sales volume in the third quarter, up from 32 percent a year earlier.
GM Financial also provides subprime loans to non-GM dealers under the AmeriCredit brand.