The auto finance market maintained outstandings of more than 1.3 trillion in 2022, but also saw a decline of 0.6% in loan and lease outstandings from the peak in 2021, according to the newly released 2023 Big Wheels Auto Finance Data report.
“While 2022 was a challenging year for auto finance, the industry more than held its own, keeping originations and outstandings at historically strong levels,” said Marcie Belles, vice president of auto finance at Royal Media Group, the report’s publisher.
Much of that decline in outstandings was driven by a fall in leasing volume, which plunged to its lowest level since 2011. The decline in leasing was driven by limited new-vehicle inventory and scaled-back incentives. These declines primarily affected the largest players — captives and banks — while credit unions powered most of the growth with a 12.6% growth rate.
The Big Wheels Auto Finance Data Report has been published annually since 1999. Released today, the Big Wheels Auto Finance Data Report is the nation’s only ranking of the Top 100 auto financiers in the United States by outstandings and originations. Big Wheels data is derived from proprietary data and methodologies.
On the origination front, total loan and lease volume declined nearly 13%. The nation’s top 100 financiers closed out 2022 with nearly $609 billion of originations, down from a high of $690 billion in the year prior. Banks lost market share for the ninth straight year, as they continued to back off from the auto finance sector in favor of higher-yielding assets. Banks’ share of loan and lease originations dropped to 42.7%, while credit unions and independent finance companies continued to grow their market share.
While larger players and the overall market saw declines in 2022, credit unions and independent finance companies were able to find opportunities to continue to grow their portfolios. Eight of the 10 independent finance companies that cater to nonprime customers bumped up volume by financing used vehicles, which were still in high demand.
“Challenges in the new-car sector trickled down into the used-car space in 2022, constricting origination volume,” said Belles, “With this backdrop and a slow rebound on the production side, the pace for vehicle sales and origination will inch higher in the coming years.”
The nation’s Top 5 financiers as ranked in the 2023 report were:
1. Toyota Financial Services
2. Ally Financial
3. GM Financial
4. Chase Auto
5. Capital One Auto Finance
Toyota Financial Services retained its crown as the No. 1 financier by outstandings, ending the year with $98.8 billion of receivables, down from $100.5 billion in the prior year.
The 2023 Big Wheels report includes enhancements that provide a deeper understanding of the sector, including a 10-year forecast for auto finance outstandings and new data on direct loan and lease offerings.
The 2023 Big Wheels Auto Finance Data Report is now available via the Auto Finance News website at autofinancenews.net/big-wheels-auto-finance-data
ABOUT BIG WHEELS
The Big Wheels Auto Finance Data Report is the nation’s only tabulation of auto lending and leasing. The report, published annually since 1999, uses a wide range of public, private, and proprietary data to formulate its ranking of the Top 200 auto finance companies, and includes a directory of these companies as well as an interactive online data tool of the rankings data. Big Wheels Auto Finance is published by Auto Finance News, a unit of Royal Media. Since 1996, Auto Finance News has been the newsletter of record for the auto lending and leasing market. Press copies of the report and expert commentary on the findings are available through Marcie Belles, a 20-year auto finance industry veteran and author of the report. She can be reached at 832-754-5502 or [email protected].