Auto Finance: 2015 finished strong and 2016 looks even better.

Wells Fargo & Co. today reported auto originations of $7.6 billion, up 13% from the same time a year ago. As for outstandings, indirect auto receivables were $57.1 billion, up 2.5% year over year. Commercial auto outstandings were $10.3 billion in 4Q15, up 14.2%, year over year.U.S. Bank has released year-end earnings today, and wrapped up 2015 with average auto loans at $16.6 billion, up 13.7% year over year. The continued growth in the auto business was driven by “high-quality originations” — with an average Fico of 771 — in the indirect channel, according to financial data released on January 15th.

Many factors in our economy such as gas prices and employment rates will make 2016 a good year for Auto Dealers.

– Domenick Chiapparelli, AutoNotes Solutions

The 2016 forecast is set for smooth sailing for the U.S. economy in general and for auto finance in particular, said Emily Kolinski Morris, Ford Motor Co. chief economist, in a conference call on Tuesday. Many of the “favorable factors” that produced record sales in 2015 — such as low fuel prices, a rebounding labor market, improved housing starts, and high consumer confidence — will remain in place this year, she said.

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By | 2017-01-15T17:45:00+00:00 January 18th, 2016|Auto Finance Report, News|0 Comments

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