Car Prices Are Still Falling But the Sky Isn’t as Lender Profits Rise
- GM Financial, Ally overcome slumping U.S. values for used cars
- Vehicle prices steadier in last quarter, but pain still ahead
General Motors Co. (GM) Chevrolet vehicles are displayed for sale at Phillips Chevrolet car dealership in Frankfort, Illinois, U.S., on Thursday, April 30, 2015. Domestic and total vehicle sales figures are scheduled to be released on May 1.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Auto lenders that sounded alarm bells about slumping car values are seeing less of a price drop than feared. Proof of the reprieve -- however short-lived -- is showing up in their profits.
Ally Financial Inc., the bank that gets most of its revenue from auto loans, saw record adjusted earnings in the second quarter. General Motors Co.’s finance arm reported all-time high pretax profit in the period, and Ford Credit’s was its best since 2011.