AutoNation CEO Mike Jackson told CNBC on Wednesday he doesn't see signs of trouble in the auto loan market even though Wells Fargo said it would cap lending to borrowers with bad credit.
Jackson said the auto industry had originated $3.5 trillion worth of loans to finance auto sales in the last decade. Meanwhile, the outstanding balance on that loan volume has only increased by $100 billion, he said on "Squawk Box."
"Think about that. $3.5 trillion of sales and the outstanding balance went from $800 billion to $900 billion. The point being people pay for their car loans," he said.
Wells Fargo, one of the country's biggest subprime auto lenders, said Monday it would limit the amount of subprime loans it originates to 10 percent of its total loan creation.
The number of vehicle loans with terms of six or more years has surged recently as borrowers aim to keep their monthly payments low, according to new data from Experian. More than 25 percent of new auto loans have terms that stretch six to seven years, the firm reported on Wednesday.