NADA is long respected by the finance industry.
The National Automobile Dealers Association (NADA) announced today that Ally Financial will use its used vehicle pricing information from the NADA Used Car Guide when underwriting consumer auto contracts in 38 states. The change is effective immediately.
Ally said the move is designed to help dealers sell more used vehicles and build on the company’s success as a leading provider of financing in the new vehicle market.
Ally, formerly GMAC, is one of the largest providers of automotive wholesale and retail financing in the U.S. A majority of Ally is owned by U.S. taxpayers.
“The NADA Used Car Guide is an industry leader and part of our strategy to significantly grow our market share in the used segment,” said Tim Russi, Ally executive vice president of North American Operations.
“The outlook for used-car and truck sales remains strong this year and we feel that the NADA Used Car Guide can help lenders like Ally meet their growth objectives as market demand continues to build,” said Mike Stanton, NADA CEO of NADA Used Car Guide.
Ally Financial has financed more consumer new vehicle purchases in the U.S. than any other lender during 2010, according to AutoCount data by Experian Automotive. In 2010, Ally financed more than 803,000 new vehicle purchases, resulting in nearly $23 billion in consumer retail contracts in the U.S. This represents an approximately 60% increase in new vehicle originations compared to 2009.
“Ally accounted for one in every eight new vehicle purchases that are financed in this country last year,” said Bill Muir, Ally Financial president. “We are proud to support a broad network of automotive dealers and their customers with financing products and services, and as the leading auto financing source in the market, we are committed to this industry for the long-term.”
In total, combining new and used vehicles, purchases and leases, Ally financed $31.6 billion in consumer auto contracts in the U.S. in 2010. Ally financed nearly 1.2 million vehicles, an increase of more than 80% from 2009. In addition, the company provided financing for more than 2.8 million vehicles sold to over 5,000 dealers in 2010, an increase of nearly 80%.