Wells Fargo and Chase, two of the biggest auto lenders, continued to expand in the fourth quarter of 2012, which means the likely continuation of competition for auto dealers’ business among banks, captive finance companies and credit unions.
Huntington Bank, which offers auto loans in 15 states from Ohio to New England, posted record volume, as noted by Jim Henry of Automotive News.
“It’s incredibly competitive, and that’s very good for the dealer and the consumer,” said Rich Porrello, segment director of auto finance at Huntington Bank of Columbus, Ohio.
Porrello said the bank had a record fourth quarter and full year in 2012 for auto loan originations, up 12% for the quarter and 12% for the year.
According to Experian Automotive, the biggest banks in auto lending in the third quarter were: No. 1, Wells Fargo; No. 2, Ally Financial, the preferred lender for General Motors and Chrysler Group; and No. 3, Chase Auto Finance. Huntington was among the top 20 U.S. auto lenders.
Porrello said the auto loan industry will continue to grow 2013, fueled by a combination of low interest rates and high used-car prices.