Despite the Growing Economy Lending is Pulling Away From Auto Loans

The American economy is booming, and more and more drivers are buying SUVs, higher-priced cars and large vehicles as opposed to smaller economy models. This has bolstered the flagging U.S. auto industry for many quarters and helped raise lending volumes to $1.1 trillion since 2016.

This is because the country’s banking industry has pulled back from auto loans thanks to the spike in loan charge-offs that began in Q1 2017. This can be seen in the combined market share of the five industry leaders, including Ally Financial, JPMorgan Chase, Capital One, Wells Fargo and Bank of America, whose footprint has shrunk from 26 percent a year ago to 25 percent currently.

Alternative Lending

One way borrowers circumvent uncertainty in the market is seeking alternative lending options, such as title loans. The key is finding a company that is there for customers where and when they’re needed. According to one title loan lender in Los Angeles, “There are many title loan lenders in Los Angeles but we are the title loan company to help you with the lowest rates and the most money. When you are shopping for the best title loan, convenience is a major factor.” Innovative lenders such as Car Title Loans California provide solutions for users who can’t afford to wait for traditional banks to approve their applications.

Overview Of Loan Portfolios

Among these banks, Ally Financial has grown its auto lending to keep its stance as the largest U.S. auto lenders. However, Capital One has an unusually high auto loan growth rate of 8 percent from Q2 2017 to Q2 2018, compared to a growth of 3 percent for all U.S. auto loans. Meanwhile, Ally achieved an impressive 5.5 percent growth rate.

Capital One is not new to the high-risk, high-return consumer industry since the bank’s expertise is in the card lending. It’s now the nation’s 9th largest bank in the commercial sector.

Whether each of these banks will increase or decrease opportunities for consumers trying to build their credit remains to be seen. In the meantime, it’s likely that alternative financing will continue to find new ways to fill the gap.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

After The Death of Tzeela Gez, Seeking Painful Reprisal, Not Tweezed Action

Tzeela Gez was critically wounded in the terror attack. She was rushed to Beilinson Hospital while undergoing resuscitation in the ambulance.

Jane Austen Wrecked my Life – Blaming the Wrong Scapegoat

The film’s title is original and promises humor but,...

Is Generative Engine Optimization (GEO) Really the Future

Is Generative Engine Optimization (GEO) Really the Future? Everything...

Kanat Kopbayev and the Next Generation of Leadership in Central Asia: A Kusto Group Perspective

Kanat Kopbayev, through his strategic role at Kusto Group, has been instrumental in nurturing young leaders to meet the demands of today’s business world.

Designing the Perfect Control Room: Essential Features and Modern Trends

Key Takeaways Discover the fundamental aspects of creating an...

The Five Leading Tech Marketers in Israel

Israel’s high-tech sector has earned its place as a...

Lies And Deception Is Hamas Victory

Hamas is the manipulation master of Westerners' minds. They learned well how the West thinks [or does not] and they manipulate the West to concede to them. A Hamas victory is not what Westerners would expect.

Peer Review Under Pressure: Scientists, Journals and the Struggle for Trustworthy Research

Peer review under fire: critics say it’s flawed, slow and biased. Replication may offer a better test — but it’s still rare.

Related Articles

Popular Categories