Ally Keeps Growing as Auto Loan Delinquencies and Losses Edge Higher |

Third-quarter originations climbed to $12.9 billion, but rising delinquencies, charge-offs and credit provisions suggest lenders still have reason to watch portfolio performance closely.

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Detroit, MI – October 21, 2026 – Ally Financial continued expanding its consumer auto lending business during the third quarter, generating $12.9 billion in new originations even as delinquency rates, credit losses and provisions moved higher.

According to the company’s October 20 third-quarter earnings results, consumer auto originations increased $1.2 billion from the same period in 2025, reflecting continued lending activity despite persistent pressure on household finances and auto loan performance.

The growth, however, came alongside modest year-over-year increases in two closely watched credit indicators.

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Delinquencies and Charge-Offs Move Higher

Ally reported an all-in 30-plus-day auto delinquency rate of 4.96%, compared with 4.90% a year earlier. Its retail auto net charge-off rate increased to 1.89%, up slightly from 1.88% in the third quarter of 2025.

Although the year-over-year increases were relatively small, both measures rose more noticeably from the second quarter, when seasonal credit performance is typically stronger.

The company’s auto credit-loss provision also increased $101 million year over year to $511 million. Ally attributed the increase to portfolio growth and stabilizing credit trends.

That explanation is important. A larger loan portfolio naturally requires additional reserves, and higher provisions do not necessarily indicate that the underlying loans are deteriorating at the same rate.

Nevertheless, the combination of growing originations, elevated delinquencies and continued charge-offs illustrates the balancing act facing auto lenders as they pursue new business while managing credit risk.

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Growth Today, Credit Performance Tomorrow

For auto finance executives and collection managers, the more important question may be how Ally’s newer loan vintages perform as they mature.

New originations can support earnings and portfolio growth, but their ultimate credit performance will not become fully apparent until borrowers have accumulated more payment history.

The latest results do not establish that Ally’s newest borrowers are performing worse than earlier vintages. Determining that would require more detailed vintage-level delinquency and loss data.

Still, the company’s third-quarter figures suggest that credit pressure has not disappeared, even as lending volumes continue expanding.

For collectors and recovery managers, the distinction between modest year-over-year deterioration and a sharper sequential increase is worth monitoring, particularly as portfolios move through the traditionally more challenging fourth-quarter collection cycle.

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No Crisis, but Not All-Clear Either

Ally’s results do not point to a sudden deterioration in auto credit quality. The relatively narrow year-over-year changes in delinquency and charge-off rates are more consistent with an elevated but comparatively stable credit environment.

However, stability does not necessarily mean improvement.

With nearly 5% of its auto portfolio at least 30 days delinquent, Ally continues to operate in an environment where payment performance, collection effectiveness and loss mitigation remain central to profitability.

The company’s ability to maintain origination growth while containing future credit losses will be an important indicator of whether the auto finance market is finding a sustainable balance between lending volume and borrower risk.

For now, Ally is still growing. Whether its newer loans can sustain that growth without producing additional credit losses remains a question for the quarters ahead.

Source: Ally Financial — Third Quarter 2026 Earnings Presentation (PDF).