Ally CFO Jenn LaClair said that despite high interest rates, the lender maintained originations in the first half of the year because of used-vehicle demand.
“From a consumer perspective, the price of a new vehicle vs. the price of the used vehicle has had the largest gap it’s had in over a decade,” LaClair said on a call with investors. The gap is about $13,000, LaClair said, citing industry reports.
“We continue to see a strong consumer demand for used. It continues to be very profitable for dealers, and it’s profitable for us as well. We aren’t seeing any of that slow down for us, even out of the gate here in July.”
Auto originations were sourced from a record-high 3.3 million applications in 18,100 dealerships across the U.S., according to Ally.