Ally Posts Near-Record Originations in Q2
NEW YORK — In the second quarter, Ally Financial Inc.’s auto franchise posted its second highest level of consumer auto originations in its history. The feat was driven by record decision applications and used-vehicle originations.
Consumer financing originations totaled $10.9 billion for the quarter, up 11% year over year. The originations were comprised of $4.7 billion in new retail, a record $3.1 billion in used retail and $3.2 billion in leases. Officials added that volume from non-GM and non-Chrysler dealers grew 48% on a year-over-year basis and now accounts for 20% of the firm’s total consumer originations.
“The second quarter, I think, clearly demonstrated the strength of our core auto franchise,” said Ally CEO Michael Carpenter during the company’s July 29 investor call. “Auto originations in the quarter are evidence that Ally’s dealer-focused, go-to-market strategy is winning despite the intensity of competition in the market place.”
Ally’s auto franchise posted a pre-tax income of $461 million for the second quarter, up from $382 million in the year-ago quarter. The increase was driven by a 14% increase in net financing revenue from a year ago.
Retail auto net charge-offs accounted for 0.58% of all open auto loans, down from 0.85% in the year-ago quarter. Ally’s delinquency rate, however, increased, rising from 1.59% in the year-ago quarter to 2.02%. “This was up quarter over quarter given normal seasonal performance trends, where delinquencies are lowest at the end of the first quarter,” CFO Chris Halmy said. “Year-over-year delinquencies were up 24 basis points, which are consistent with our expectations and the more balanced origination mix that we’ve had since 2012.
“Overall, the takeaway here is that auto asset quality results were well in line with our expectations as we continue to anticipate seasonality quarter over quarter and a gradual increase in charge-offs year over year due to normalization of our portfolio.”
Consolidating all of its business units, Ally posted net income of $323 million in the second quarter vs. a net loss of $927 million in the year-ago quarter. That loss was related to the $1.6 billion settlement agreement in the ResCap Chapter 11 bankruptcy case.
Officials also reported continued progress in expanding its diversified dealer relationships. In the second quarter, the company grew its dealer count by more than 900 dealers from a year ago. Including auto and RV dealers, Ally’s dealer count totaled approximately 16,400 dealers at the end of the second quarter.
“So we continue to make good progress expanding and, obviously, that’s showing up or manifesting itself in some of the diversification numbers that you see in origination as well,” Halmy told investors. “So about 20% of the originations we are doing [with] non-GM, non-Chrysler [dealers].
“I think when we think about relationships, we try to conquest. They are more of the franchised dealers and I think that’s somewhere in the neighborhood of more like 18,000 dealers,” he added. “So, obviously, at 16,400 dealers, we are doing the lion’s share of them today.”
More Industry

The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →
First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →