DETROIT — Ally Financial’s auto originations rose 12 percent in the second quarter, largely driven by gains in the used-vehicle market. At the same time, the lender’s share of non-General Motors and Chrysler originations reached a record high.
Ally also increased overall net income and financing revenue, the company said in a statement Thursday.
Ally, one of the largest auto lenders in the U.S., increased auto originations to $9.6 billion, a $1 billion leap from the year earlier, due to diversification and growth of dealer relationships, said Ally CEO Jeffrey Brown.
Used-vehicle loan originations, which made up more than half of Ally’s origination volume in the second quarter at $4.9 billion, primarily drove the growth.
The lender’s growth-channel share — consisting of franchised dealerships that sell brands other than Chrysler or those from General Motors — also helped boost originations. Growth-channel share reached a record high 45 percent during the quarter, said Brown.
“Our number of growth channel dealers expanded this quarter as we onboarded nearly 200 new dealers across a variety of nameplates,” he said.
The General Motors and Chrysler channels made up 27 percent and 28 percent of originations respectively.
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