Page 3 - MIADA-Q1-2022

Used-Car Market to Remain Robust

in 2022, Ally CEO Says

By Jim Henry

Ally Financial says it expects used-vehicle the quarter, an increase of 49% vs. a year rate for auto originations to continue in
prices to fall about 15% from today’s near- ago. U.S. consumer auto loan and lease the range of low $40 billions, Brown says.
record highs by the end of 2023, but the originations, including new and used, were “We’re large. We’re fast. Dealers like us,”
company adds that so far in early 2022, $10.9 billion in the fourth quarter, up 19.8% he says. “We respond very quickly.” Ally
there’s no sign of a significant decline, so vs. a year ago. says auto-decisioning accounts for 70%
potentially there’s upside to the forecast. of its approved credit applications in
Used-vehicle originations auto and related insurance in 2021. For
“Used-car prices, we see them within our accounted for 64% of Ally’s all Ally Financial business segments,
financial trends as moderating,” Ally CEO fourth-quarter U.S. consumer including auto finance and insurance,
Jeffrey Brown says in a Jan. 21 conference online banking, brokerage and wealth
call to announce fourth-quarter earnings. auto originations, management, mortgages and credit cards,
“But if you look at the environment, used- up from 51% a year ago. fourth-quarter net income attributable to
car prices are still very strong. Our outlook common shareholders was $624 million,
this year is a really robust used-car market.” Ally ends the fourth quarter with 21,076
active dealership relationships, up 12.6% down 9.2%.
In a separate forecast earlier this month, Cox vs. a year ago. That’s the 12th year in a row For full-year 2021, Ally net income
Automotive says it expects the Manheim the number of dealership relationships has attributable to common shareholders was
Used Vehicle Value Index to decline just 3% increased, the bank says. $3 billion, almost triple 2020. n
by the end of 2022 vs. 2021.
For full-year 2021, auto originations were Jim Henry is a prominent business writer
For its key auto finance segment, Ally $46.3 billion, up 31.9% vs. 2020. For the for more than 10 years at the leading auto
reports pre-tax income of $839 million for near future, Ally’s guidance is for the annual trade publication.

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