GM Financial earned $487 million in the third quarter, down from $589 million a year earlier, while the lender set aside more money for bad loans and spent more to run the business. Late payments on its retail auto loans also rose, with 3.7% of the portfolio past due at September 30. The results from the captive auto lender give a direct read on how car buyers are keeping up with their payments.
More set aside for loan losses and higher costs
GM Financial’s third-quarter results show net income of $487 million for the quarter ended September 30, 2026, compared with $589 million for the same quarter of 2025. That is a drop of $102 million. Income before income taxes fell to $668 million from $804 million.
Anyone financing a vehicle through GM Financial, or leasing one, is part of the portfolio behind these numbers. The release does not say why profit fell and carries no comment from Susan Sheffield, the chief executive named in its company description. The figures show only where the money moved.
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Two lines moved against the lender. The provision for loan losses, the money set aside for loans that may not be repaid, rose to $340 million from $244 million. Operating expenses rose to $642 million from $545 million. Interest expense moved the other way, easing to $1,558 million from $1,651 million.
Add the two increases and the cost side grew by $193 million from a year earlier, a $96 million rise in the provision plus a $97 million rise in operating expenses. The $93 million decline in interest expense offset only part of that. The result is the lower profit in the headline.
The longer view is similar. Net income for the first nine months of 2026 was $1.4 billion, compared with $1.6 billion a year earlier. Income before income taxes over nine months was $1,962 million against $2,193 million. The provision for loan losses over nine months was $996 million, up from $926 million.
How many GM Financial borrowers are behind on payments
Retail finance receivables 31 to 60 days delinquent were 2.6% of the portfolio at September 30, 2026, up from 2.3% a year earlier. Accounts more than 60 days delinquent were 1.0%, up from 0.9%. The release puts the combined past-due share at 3.7%, against 3.2% at the end of September 2025.
The release starts counting an account as delinquent once it is 31 days late, so the percentages above leave out borrowers who are only a few days behind. Even so, the share of the portfolio in that group grew over the year in both the 31-to-60-day and over-60-day buckets.
Annualized net charge-offs, the loans written off as uncollectible after recoveries, were 1.6% of average retail finance receivables for the quarter. A year earlier the figure was 1.2%. For the first nine months of 2026 it was 1.5%, compared with 1.2% for the same period of 2025.
The retail portfolio is large. Retail finance receivables stood at $76.7 billion at September 30, alongside $18.0 billion in commercial finance receivables. Total finance receivables, net, were $91.8 billion, and ending earning assets were $126.9 billion.
A rise of half a percentage point in the past-due share sounds small, and on a $76.7 billion book it covers a lot of households. The lender’s provision of $340 million for the quarter shows how much it set aside against that risk.
Retail lending held steady while leasing slowed
Retail loan originations were $9.9 billion in the third quarter, up from $8.8 billion a year earlier and roughly flat with $10.0 billion in the second quarter. Lending to buyers did not pull back. The lender kept writing loans at a higher pace than a year ago even as more of them ran late.
Leasing was the weaker side. Operating lease originations were $3.7 billion, compared with $5.0 billion a year earlier. Total originations, which combine retail loans and leases, were $13.6 billion against $13.8 billion in the third quarter of 2025.
Leased vehicles, net, were $32.2 billion at September 30, down from $33.6 billion a year earlier. The lender’s lease book is smaller than it was, while its retail loan book is where the payment problems show up.
Liquidity and the lender’s link to GM
GM Financial reported total liquidity of $28.0 billion at September 30. That included $4.7 billion in cash, cash equivalents and marketable debt securities, and $19.1 billion of borrowing capacity under secured credit facilities. It also counted $1.2 billion under committed unsecured credit facilities.
The rest came from its parent. A $1.0 billion Junior Subordinated Revolving Credit Facility from GM and a $2.0 billion GM Revolving 364-Day Credit Facility make up $3.0 billion of the total, with the other $25.0 billion coming from cash and outside facilities. The release also reports $30 million in cumulative dividends on preferred stock for the quarter.
Where does the tax bill on retirement income fit beside a car payment?
GM Financial’s results describe the lender’s side of household budgets, while the tax bill on retirement income is a separate line that can be planned.
Late payments are climbing on GM Financial’s auto loans, with 3.7% of retail accounts past due at September 30 against 3.2% a year earlier. Households carrying a car payment are competing for the same monthly income as every other bill, and the tax owed on Social Security and withdrawals is the part of that budget that can still be planned.
GM Financial’s results are about auto lending, not retirement tax, but The Retirement Tax & Withdrawal Planner finishes a related job: the monthly budget that retirement income has to cover. It explains the senior deduction and the IRMAA Medicare surcharge, and it includes four calculators for provisional income, IRMAA tier, RMD schedule and Roth bracket fill.
Get the tax planner with four retirement calculators and the senior deduction →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
