Q1 originations split
- Q1 auto originations were uneven, with growth tied to specific OEM partnerships and channels. - Wells Fargo grew originations 111% to $9.7B, Ally rose 12.8% to $11.5B, and Chase fell 2.8% to $10.4B. - Delinquencies and net chargeoffs declined year over year even as ABS issuance cooled and funding remained selective (x.com).
Big auto lenders did not move in lockstep in the first quarter: Wells Fargo and Ally grew originations, while Chase posted a small decline. (autofinancenews.net) Wells Fargo originated $9.7 billion of auto loans in Q1 2026, up 110.9% from a year earlier, and Auto Finance News said the gain was tied to the bank’s preferred financier arrangement with Volkswagen. Wells Fargo’s own April 14 earnings materials said auto originations and balances increased in the quarter. (autofinancenews.net) (wellsfargo.com) Ally Financial reported $11.5 billion of consumer auto originations in Q1, up about 13% from a year earlier, after what it called a record 4.4 million consumer auto applications. Bloomberg reported that about 66% of Ally’s auto originations were tied to used vehicles. (ally.com) (bloomberg.com) Chase Auto reported $10.4 billion of auto loan and lease originations in Q1, down 2.8% from a year earlier and 3.7% from the fourth quarter, according to JPMorgan Chase’s April 14 earnings supplement. Auto Finance News said credit performance in Chase’s auto portfolio improved even as volume fell. (autofinancenews.net) (jpmorganchase.com) The split shows how auto lending volume is being driven less by the broad car market than by where each lender gets business. Ally said originations rose even though industry light-vehicle sales declined, while Wells Fargo’s jump was linked to one manufacturer relationship. (ally.com) (autofinancenews.net) Credit trends improved at the same time. Ally said retail auto delinquencies of 30 days or more fell 17 basis points from a year earlier to 4.60%, and its retail auto net charge-off rate fell 15 basis points to 1.97%. (ally.com) Auto lenders also entered 2026 with a tighter funding backdrop. S&P Global projected in January that U.S. auto asset-backed securities issuance would fall 4% this year to about $122 billion, and Auto Finance News reported in March that total auto ABS volume was still declining even as auto lease ABS held up better. (autofinancenews.net 1) (autofinancenews.net 2) Asset-backed securities are bonds backed by loan payments, and auto lenders use them to turn car loans and leases into cash for new lending. When that market cools, lenders can still grow, but the results tend to favor banks with cheaper deposits, stronger manufacturer ties, or steadier dealer channels. (sec.gov) (ally.com) That left Q1 looking uneven rather than weak: demand was still there, credit losses were easing, and the biggest gains went to lenders with the right partners and funding. (autofinancenews.net)
