Capital One, a major lender for car loans and credit cards, says its auto finance division has ended up in the black for the first quarter of the year. The company says that although economic deterioration increased in the first quarter, the auto finance unit proved to be an exception to this trend.
While Capital One Auto Finance posted an approximately $925 million loss in the fourth quarter of 2008, it earned about $71 million in net income for the first quarter of this year.
This compares to about $15 million in the third quarter of 2008, $34 million in the second quarter and a loss of $82 million in the first quarter of last year, SubPrime Auto Finance News reports.
Capital One Auto Finance says that it originated $1.46 billion worth of car loans for the first quarter, compared with $1.47 billion in the fourth quarter of 2008. Also down slightly was the number of auto loans. It originated 1.61 million car loans in the first quarter, compared with 1.63 million in the last quarter of 2008.
For consumers, this means that Capital One Auto Finance is giving people car loans. The fact that the company made a profit in the first quarter of the year should tell car shoppers that this lender is giving people money to finance their next vehicle. And if you’re in the market for a car and need financing, this is one lender you may want to apply with for your car loan.