Page 19 - PIADA-March 2022-Final-web

Used-Car Market to Remain Robust

in 2022, Ally CEO Says

Ally reports U.S. consumer auto loan and lease originations, including new

and used, were $10.9 billion in the fourth quarter, up 19.8% vs. a year ago.

By Jim Henry

Ally Financial says it expects used-vehicle decisioning accounts for 70% of its approved mortgages and credit cards, fourth-quarter net
prices to fall about 15% from today’s near- credit applications in auto and related income attributable to common shareholders
record highs by the end of 2023, but the insurance in 2021. was $624 million, down 9.2%.
company adds that so far in early 2022,
there’s no sign of a significant decline, so For all Ally Financial business segments, For full-year 2021, Ally net income
potentially there’s upside to the forecast. including auto finance and insurance, online attributable to common shareholders was
banking, brokerage and wealth management, $3 billion, almost triple 2020. n
“Used-car prices, we see them within our
financial trends as moderating,” Ally CEO
Jeffrey Brown says in a Jan. 21 conference
call to announce fourth-quarter earnings.
“But if you look at the environment, used-
car prices are still very strong. Our outlook Auto Dealer/Garage
this year is a really robust used-car market.”

In a separate forecast earlier this month, Cox
Automotive says it expects the Manheim Insurance Specialists
Used Vehicle Value Index to decline just 3%
by the end of 2022 vs. 2021.

For its key auto finance segment, Ally
reports pre-tax income of $839 million for
the quarter, an increase of 49% vs. a year
ago. U.S. consumer auto loan and lease
originations, including new and used, were
* Garage and Automobile Liability *
$10.9 billion in the fourth quarter, up 19.8% * Garage and Automobile Liability *
vs. a year ago.
* Dealer Physical Damage *
* Dealer Physical Damage *
Used-vehicle originations * Garagekeepers *
* Garagekeepers *
accounted for 64% of Ally’s
* Work Comp *
fourth-quarter U.S. consumer * Work Comp *
auto originations, * Quick Quote Turnaround *
* Quick Quote Turnaround *
up from 51% a year ago.

Ally ends the fourth quarter with 21,076
active dealership relationships, up 12.6%
vs. a year ago. That’s the 12th year in a row
the number of dealership relationships has
increased, the bank says.
Telephone: 215-860-6510 Website: www.aatins.com
For full-year 2021, auto originations were
$46.3 billion, up 31.9% vs. 2020. For the Langhorne, Pennsylvania
near future, Ally’s guidance is for the annual
rate for auto originations to continue in the
range of low $40 billions, Brown says. “We’re Your One-Stop Shop for Auto Dealer Insurance
large. We’re fast. Dealers like us,” he says.
“We respond very quickly.” Ally says auto-