In response to growing auto sales, car loans on the rise

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Auto Loan Industry

When looking at economic growth in the past year, most eyes are on the housing and real estate market. But other sectors that are also improving include the auto industry, found by Fitch Ratings to hit new levels of growth if it continues to expand at 2012 rates. In addition to new sales, falling auto loan delinquency rates have improved in the past year, and, as Automotive News explained this month, banks are making more loans to help consumers contribute to this growing market.

Automotive News found this week that Wells Fargo and Chase have both significantly expanded their volume of car loan originations in the last quarter of 2012, and expect to continue this year. In addition to these major lenders in the auto loan industry, lesser-known banks are also finding themselves making more car loans.

Huntington Bank’s director of auto finance Rich Porrello told the news source the bank had a “record fourth quarter” last year, with auto loans up both 12 percent for the last quarter and for the year. That bank was considered among the top 20 auto lenders in the third quarter in the country alongside Wells Fargo, Ally Bank and Chase.

With both an improving economy and continued low interest rates, these numbers are not particularly surprising, but instead point to areas from which banks and other lending institutions could expect to see more business. A higher number of potential originations increases the need for loan processing software to keep up with the rising applications. Additionally, with delinquency rates among car loans on the decline, the auto industry is proving to be a financially smart option for many banks, regardless of their size.

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When looking at economic growth in the past year, most eyes are on the housing and real estate market. But other sectors that are also improving include the auto industry, found by Fitch Ratings to hit new levels of growth if it continues to expand at 2012 rates. In addition to new sales, falling auto loan delinquency rates have improved in the past year, and, as Automotive News explained this month, banks are making more loans to help consumers contribute to this growing market.

Automotive News found this week that Wells Fargo and Chase have both significantly expanded their volume of car loan originations in the last quarter of 2012, and expect to continue this year. In addition to these major lenders in the auto loan industry, lesser-known banks are also finding themselves making more car loans.

Huntington Bank’s director of auto finance Rich Porrello told the news source the bank had a “record fourth quarter” last year, with auto loans up both 12 percent for the last quarter and for the year. That bank was considered among the top 20 auto lenders in the third quarter in the country alongside Wells Fargo, Ally Bank and Chase.

With both an improving economy and continued low interest rates, these numbers are not particularly surprising, but instead point to areas from which banks and other lending institutions could expect to see more business. A higher number of potential originations increases the need for loan processing software to keep up with the rising applications. Additionally, with delinquency rates among car loans on the decline, the auto industry is proving to be a financially smart option for many banks, regardless of their size.

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When looking at economic growth in the past year, most eyes are on the housing and real estate market. But other sectors that are also improving include the auto industry, found by Fitch Ratings to hit new levels of growth if it continues to expand at 2012 rates. In addition to new sales, falling auto loan delinquency rates have improved in the past year, and, as Automotive News explained this month, banks are making more loans to help consumers contribute to this growing market.

Automotive News found this week that Wells Fargo and Chase have both significantly expanded their volume of car loan originations in the last quarter of 2012, and expect to continue this year. In addition to these major lenders in the auto loan industry, lesser-known banks are also finding themselves making more car loans.

Huntington Bank’s director of auto finance Rich Porrello told the news source the bank had a “record fourth quarter” last year, with auto loans up both 12 percent for the last quarter and for the year. That bank was considered among the top 20 auto lenders in the third quarter in the country alongside Wells Fargo, Ally Bank and Chase.

With both an improving economy and continued low interest rates, these numbers are not particularly surprising, but instead point to areas from which banks and other lending institutions could expect to see more business. A higher number of potential originations increases the need for loan processing software to keep up with the rising applications. Additionally, with delinquency rates among car loans on the decline, the auto industry is proving to be a financially smart option for many banks, regardless of their size.

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When looking at economic growth in the past year, most eyes are on the housing and real estate market. But other sectors that are also improving include the auto industry, found by Fitch Ratings to hit new levels of growth if it continues to expand at 2012 rates. In addition to new sales, falling auto loan delinquency rates have improved in the past year, and, as Automotive News explained this month, banks are making more loans to help consumers contribute to this growing market.

Automotive News found this week that Wells Fargo and Chase have both significantly expanded their volume of car loan originations in the last quarter of 2012, and expect to continue this year. In addition to these major lenders in the auto loan industry, lesser-known banks are also finding themselves making more car loans.

Huntington Bank’s director of auto finance Rich Porrello told the news source the bank had a “record fourth quarter” last year, with auto loans up both 12 percent for the last quarter and for the year. That bank was considered among the top 20 auto lenders in the third quarter in the country alongside Wells Fargo, Ally Bank and Chase.

With both an improving economy and continued low interest rates, these numbers are not particularly surprising, but instead point to areas from which banks and other lending institutions could expect to see more business. A higher number of potential originations increases the need for loan processing software to keep up with the rising applications. Additionally, with delinquency rates among car loans on the decline, the auto industry is proving to be a financially smart option for many banks, regardless of their size.

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When looking at economic growth in the past year, most eyes are on the housing and real estate market. But other sectors that are also improving include the auto industry, found by Fitch Ratings to hit new levels of growth if it continues to expand at 2012 rates. In addition to new sales, falling auto loan delinquency rates have improved in the past year, and, as Automotive News explained this month, banks are making more loans to help consumers contribute to this growing market.

Automotive News found this week that Wells Fargo and Chase have both significantly expanded their volume of car loan originations in the last quarter of 2012, and expect to continue this year. In addition to these major lenders in the auto loan industry, lesser-known banks are also finding themselves making more car loans.

Huntington Bank’s director of auto finance Rich Porrello told the news source the bank had a “record fourth quarter” last year, with auto loans up both 12 percent for the last quarter and for the year. That bank was considered among the top 20 auto lenders in the third quarter in the country alongside Wells Fargo, Ally Bank and Chase.

With both an improving economy and continued low interest rates, these number
s are not particularly surprising, but instead point to areas from which banks and other lending institutions could expect to see more business. A higher number of potential originations increases the need for loan processing software to keep up with the rising applications. Additionally, with delinquency rates among car loans on the decline, the auto industry is proving to be a financially smart option for many banks, regardless of their size.

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