May is one of the most important sales periods for powersports dealers as warmer weather drives demand for motorcycles, ATVs and side-by-sides, Synchrony Outdoors Senior Vice President and General Manager Susan Medrano told Auto Finance News during a special episode of “The Roadmap” podcast.  

“It’s important because that buying window for peak season is so narrow,” she said. “If the consumer doesn’t purchase during that window, they may not purchase till next year.”  

This year, affordability pressures are changing how consumers approach purchases, with about 81% of shoppers focused on financing options when making large purchases, Medrano said, citing Synchrony’s 2025 Major Purchase Study, 

Modern buying trends 

Buyers also are researching financing options before visiting dealerships and are increasingly focused on monthly payments and loan terms, Medrano said. 

“The financing starts much sooner in the process,” she said. “Consumers are educating themselves before they ever get there.”  

That has spurred dealers to discuss financing on the showroom floor instead of waiting until customers reach the finance office, Medrano said. 

“If it's the monthly payment, for example, they could talk about the different terms that would be available, whether it's 36 months or it's 84 months, and the difference that makes to the consumer,” she said. “The same with total ticket price.” 

Those conversations allow dealers to tailor promotional APRs, repayment terms and add-ons to that customer, Medrano said. 

Flexible financing 

Flexible financing is increasingly important as dealers work to convert shoppers during the compressed seasonal sales window, Medrano said. 

“The worst thing that can happen is you get a customer to a finance desk and then they get sticker shock over the payment,” she said.  

Synchrony also encourages digital applications and mobile approval tools that allow customers to apply for financing before or during dealership visits, Medrano said. 

“We’re trying to make the buying process as frictionless as possible,” she said. 

Subscribe to “The Roadmap Podcast” on iTunes or Spotify, or download the episode. 

Auto lenders, including PenFed Credit Union, Driveway Finance and Carvana posted strong first-quarter gains, signaling continued demand for auto loans, according to their earnings releases last week. PenFed’s originations jumped 88% year over year, while Driveway Finance’s originations rose 34.8% YoY and Carvana’s originations increased 59.3% YoY as digital sales and product expansion drove growth. 

Affordability, however, remained a key constraint with Q1 earnings for dealership groups, including Asbury Automotive Group, Group 1 Automotive and Penske Automotive, showing declines in sales and mixed finance and insurance revenue. To offset pressure, dealers are leaning on longer loan terms and payment-focused financing strategies as higher vehicle prices and interest rates continue to affect consumers. 

Meanwhile, OEM captive finance performance varied, as GM Financial’s originations declined 15.8% YoY, while Ford Credit reported higher finance and lease penetration in Q1. In addition, Stellantis returned to profitability, supported by higher vehicle sales and growth in its financial services operations. 

Toyota reported a sales decline in March as weakening demand and geopolitical tensions tied to the Iran war weighed on performance. 

Lenders are also expanding credit access to sustain growth, with Western Funding launching full-spectrum lending. 

Wider market conditions shift 

EV demand remains an industry focus, as Rivian’s deliveries increased 20% YoY in the first quarter, supported by growth in software and services revenue, according to its April 30 earnings presentation.  

Auto ABS issuance rose 5.1% as of April 24. Lease ABS outperformed the broader market as investor demand remained steady, according to JPMorgan Securities data. However, potential changes to SEC disclosure requirements could increase regulatory risk for ABS issuers, adding uncertainty to the funding environment. 

Lastly, Federal Reserve officials held interest rates steady although the split vote signaled growing internal division over the policy outlook amid heightened economic uncertainty.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II and Senior Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended May 1. 

Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.  

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with the Auto Finance Summit East and the Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

“Affordability is No. 1, the biggest reason that consumers are coming to us,” to refinance, he said. “It helps with monthly payment.”

PNC reported a 60% YoY jump in auto refinance activity in 2025 and saw similar YoY growth in the first quarter of 2026, Papageorge says.

OpenRoad Lending’s refinance application volume surged 30% YoY in Q1 amid sustained new-vehicle price hikes and heightened consumer focus on affordability pressures. The average transaction price for a new vehicle rose 3.5% YoY to $49,275 in March, according to Kelley Blue Book data published April 9.

“Even with incentives helping, I don’t see transaction prices starting to come down anytime soon,” Papageorge says.

Customers in better financial situations are also refinancing as “they want to pay less interest over the life of the loan and pay out their loan sooner,” he says.

To address affordability, PNC expanded its financing to include older vehicle models and allows 84-month loan terms, he says.

“We always try to balance longer terms with maintaining credit that’s measured and balanced, so … we can help with monthly payments … while at the same time not getting too far out over our skis from a credit standpoint,” Papageorge says.

PNC reported YoY declines across auto delinquencies in Q1, according to an AFN analysis of the lender’s earnings supplement released April 15. Its auto outstandings rose 6.5% YoY to $16.3 billion.

PNC was the 24th-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels rankings data.

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor Aidan Bush and PNC’s Strati Papageorge discuss increased refinance demand in auto finance and the major affordability pressures driving consumer behaviors.

Originations reported by major banks include:

• Ally Financial, up 12.8% YoY to $11.5 billion;
• CarMax Auto Finance, down 1.5% YoY to $1.9 billion;
• Chase Auto, down 2.8% YoY to $10.4 billion;
• U.S. Bank indirect loan and lease production, mostly made up of auto loans, up 47.3% YoY to $1.7 billion; and
• Wells Fargo Auto, up 110.9% YoY to $9.7 billion.

Bank of America did not break out auto originations. However, its indirect and direct consumer outstandings, primarily consisting of auto and specialty lending loans, fell 0.4% YoY to $53.9 billion. Ally, Chase, U.S. Bank, Wells and PNC Financial reported YoY declines in auto loan delinquencies.

Fifth Third Bank’s rate of 30- to 89-day delinquencies dropped 7 basis points YoY to 0.61%.

Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Senior Associate Editor Aidan Bush dive into first-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates.

Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Auto lenders are responding to tighter margins by strengthening dealer relationships and expanding into full-spectrum financial services. Technology also continues to improve efficiency and credit decisioning, resulting in increased applications and more ways for dealers and lenders to collaborate to improve profitability amid affordability concerns. 

U.S. inflation surged in March, with the consumer price index rising 0.9%, the largest monthly increase since 2022, driven by higher gasoline prices amid the Iran war. The added challenges come as subprime bankruptcies and rising delinquencies begin to plague buy here, pay here dealers. 

Despite affordability pressures, vehicle demand remains resilient but is shifting, with higher gas prices boosting EV interest and driving a 34% year-over-year increase in public fast-charging stations. As a result, several OEMs saw growth in EV sales during March, although first-quarter numbers remained mostly low. 

Compliance concerns 

Fraud is also rising globally, with losses from auto lending first-party fraud hitting $7.2 billion in 2025, part of an estimated $10.4 billion in first-party fraud losses.  

Additionally, FirstRand plans to exit the U.K. motor finance market after setting aside £750 million ($994 million) for mis-sold loan claims. The move follows findings that 14.2 million of 32.5 million agreements were unfair, potentially costing the industry about $12.3 billion in repayments across 12.1 million loans.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Senior Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended April 10.  
Subscribe to “The Roadmap Podcast” on iTunes or Spotifyor download the episode. 

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with the Auto Finance Summit East and the Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Luxury vehicle financier Rizz Lending this month secured a $300 million warehouse facility to scale originations to about $200 million this year. Meanwhile, fintech lender Lendbuzz is targeting 20% growth in originations by adding near-prime borrowers and using cash-flow-based underwriting.  

Meanwhile, other players, including Credit Acceptance Corp., remain focused on underserved consumers, a segment of more than 90 million Americans.  

Consumers are also adjusting to affordability constraints by changing their approach to car buying. Down payments declined in the first quarter while loan balances rose, and longer-term financing – including 84-month loans – reached record levels. Meanwhile, fewer consumers are applying for auto loans even as rejection rates decline, signaling softer demand. 

At the same time, credit conditions continue to tighten. Canada’s goeasy, a subprime lender, reduced its auto exposure and tightened standards after charge-offs surged.  

Lenders also pointed to weak dealer data and rising subprime delinquencies as ongoing risks. Concerns arose around data quality because AI-driven “credit washing” distorts borrower profiles. 

Meanwhile, auto sales slowed in the first quarter, partly due to comparisons to the unusual tariff-driven surge in 2025. Higher-income buyers continue to support demand, while consumers shift to used vehicles or exit the market.

Funding markets remain stable, with only modest widening in auto ABS spreads and steady investor demand, though banks are becoming more cautious as private credit exposure grows. Still, leasing may provide an offset, with Credit Union Leasing of America projecting growth as lenders seek alternatives to long-term loans. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended April 3. 

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with the Auto Finance Summit East and the Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

The war has pushed oil prices above $100 per barrel, fueling inflation and widening auto asset-backed securities (ABS) spreads. Prime spreads have widened by up to 17 basis points, increasing funding costs and tightening credit conditions. Higher fuel costs are also squeezing consumers, especially subprime borrowers, reducing disposable income and raising delinquency risks.  

Those increased risks for subprime borrowers contributed to a 130% year-over-year jump in refinance activity in February as borrowers seek lower payments amid the market strain. Lenders also continue to tighten underwriting amid rising defaults, with early payment defaults reaching decade highs. 

To compound the pressure on the auto sector, fraud risks continue to rise, with AI-driven “dealership cloning” scams, in which fake websites impersonate dealers, leading to millions in losses, damaging consumer trust and dealer reputations. Meanwhile, TD Bank is educating its customers and employees how to combat rising fraud on the lending side. 

In response to the macroeconomic uncertainty and increased fraud, lenders and dealers continue to adjust operations as higher gas prices shift demand toward more fuel-efficient vehicles. Meanwhile, firms are adopting AI tools to improve operations but are emphasizing responsible use, including regulatory alignment and bias mitigation. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 27.   

“The rate at which we are innovating right now, given AI, is unbelievable,” he says.

Technology and AI-based tools are making processes faster and less expensive, Yajnik says. “People do research in a different way,” he says. “They can find things in a different way. It's much faster.” 

On the other hand, technology is contributing to shifts in the industry’s structure, Yajnik says. “Industry structures are based on two things. One is scale, because scale determines how quickly and how consolidated an industry grows, and the other is [that] the demarcations between two industries dissolve,” he says.  

While historically, “sometimes, there is one industry that does only finance, and another does only search. When technology comes to bear, there's a reason they are separate, because you need to pour a lot of money into it [and] you need certain expertise,” he says. “But when that expertise changes, the industries collapse into something completely new, and this is why incumbents often get left behind.” 

Adapting to changes in technology industrywide requires building from the ground up, Yajnik says. “When you've got major technological change, it's hard to be a generalist and say, ‘I'll just get these engineers, and I'll make them do a few things,’” he says. “You have to get fully into it 100% and start playing with all the things yourself.” 

Yajnik holds 27 patents, with more pending. Capital One’s auto originations increased 8.5% year over year in the fourth quarter of 2025 to $10.2 billion, with auto outstandings up 8.8% YoY to $83.6 billion. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Capital One’s Yajnik discuss AI innovation in auto finance, including responsible use of AI and technological changes still to come in the industry. 

Crude oil prices surged above $100 per barrel to end last week amid fears of supply disruptions around the Strait of Hormuz, a critical route for roughly one-fifth of global oil shipments, according to market researcher Energy Aspects’ data. The spike, which continued into today, pushed U.S. gasoline prices higher and increased volatility across financial markets. 

Higher fuel prices are adding to affordability challenges that have defined the auto market for much of the past year. The average new-vehicle transaction was $49,353 in February, while the average monthly payment for a new vehicle climbed to around $767, according to Kelley Blue Book data. 

Despite those pressures, credit activity remains steady. Subprime borrowers accounted for 15.3% of all vehicle loans in the fourth quarter of 2025, up from 14.5% a year earlier, as lenders seek to balance growth with risk management. 

At the same time, tax refunds are providing a temporary boost in demand, with the average refund expected to reach $3,742. Some lenders have reported 10% to 15% more loan applications than expected in the early weeks of tax filing. 

Meanwhile, capital markets remained active even as political tensions due to the Iran war widened credit spreads. Issuers continued to tap the asset-backed securities market, including Carvana, which issued a $1.1 billion prime auto ABS transaction and several securitizations by lenders seeking diversified funding. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 13.  

Subprime share of total vehicle financing in Q4 2025 stood at 15.3%, up from 14.5% a year earlier, according to Experian data. Prime borrowers continued to lead market share for new-vehicle financing as subprime customers remain challenged by high vehicle costs, but Federal Reserve interest rate cuts and tax refunds will potentially bring some relief in 2026. 

Affordability challenges contributed to a slowdown in retail vehicle sales across much of the country in the first part of the year, evidenced by trends in the March 3 edition of the Fed’s Beige Book. Dealers across many Fed regions reported flat to decreased new- and used-car sales as higher interest rates and rising gas prices further tightened consumers’ wallets. 

The war in the Middle East has contributed to higher oil and gas prices since the U.S. and Israeli strikes on Iran on Feb. 28, which could raise funding costs and prompt a shift in investors’ strategies.  

Meanwhile, powersports lender Octane has shored up additional funding as it aims to grow originations and its captive-as-a-service offering. New York-based Octane’s originations rose 29% year over year to $2.1 billion in 2025. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II and associate editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 6. 

Chase Auto will deploy AI that can fully automate the contract booking and funding process in 2026.

AI-powered Fintech Agora Data closed a deal on Feb. 26 with blockchain-based platform provider Figure Technologies to tokenize auto loans into real-world assets for investors. The deal will reportedly improve liquidity by increasing access to investors and providing less expensive financing compared to other forms of investment, according to S&P Global.

Lenders are also embracing AI and digital tools to empower Gen Z employees, executives at American Honda Finance, Ford Credit, Huntington Bank and Santander Consumer USA said during a panel session at the recent 2026 AFSA Vehicle Finance Conference.

On the other hand, social media platforms have provided consumers with a hotbed of misinformation around debt validation practices, prompting concern from compliance experts and auto lenders.

Meanwhile, auto finance leaders are focusing on consumers’ price concerns in 2026, as customers shift to buying used vehicles and lower financing costs.

Additionally, some auto players cut their workforces last week. Automotive marketplace TrueCar cut 30% of its workforce on Feb. 24, and subprime auto lender Prestige Financial Services reportedly laid off between 14 to 16 employees on Feb. 27.

Earnings

Several auto and RV companies reported earnings, and key takeaways include:

• Online vehicle sales platform ACV Auctions in the fourth quarter reported $18 million in losses related to subprime auto lender Tricolor Holdings’ bankruptcy;
• RV dealer Camping World’s finance and insurance revenue fell 6.4% year over year to $111.4 million in Q4, but market share improved;
• EV maker Lucid Motors’ deliveries soared 72% YoY to 5,345 vehicles in Q4;
• Automaker Stellantis’ North American shipments rose 38.9% YoY in the second half of 2025 to 825,000 units in Q4; and
• TD Bank’s indirect auto outstandings totaled $31.7 billion, up 2.9% YoY in its fiscal Q1 2026.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez, Senior Editor Truth Headlam and Associate Editor Aidan Bush discuss trends affecting the automotive industry and key updates for the week ended Feb. 27.

There is a growing disconnect between consumer expectations and the rising expenses tied to maintenance, repairs, insurance and everyday vehicle use, Keith Mait, senior vice president and general manager of Synchrony Financial’s auto business, told Auto Finance News during a special episode of the “Weekly Wrap” podcast. That was among results of the lender’s survey, released Feb. 17, that polled 1,030 U.S. adults responsible for a vehicle’s upkeep via the Ask Suzy online platform. 

“We see it every day in the average order values, or the transaction sizes, that find their way onto our cards. They haven’t gotten smaller,” he said. “Over the last four or five years, we’ve seen continuous incline in the average transaction values, both the first time somebody engages with us and on the repeat side.”

Evaluating affordability
As consumers grapple with elevated new-vehicle prices, many buyers opt for used vehicles, extend lease terms or hold on to their cars longer, Mait said. While today’s vehicles last longer, they also feature more advanced technology, sensors and specialized components that can drive up repair costs, he said. 

“When we try to evaluate consumer affordability vis-a-vis how they want their mobility to occur, it leads you to believe that they expect better quality,” Mait said. “They expect more for their dollars and they expect to have these vehicles for a long time, so making sure that they’re operating properly comes with [a] cost.”

In this episode of “Weekly Wrap,” Auto Finance News Deputy Editor Johnnie Martinez II discusses trends affecting today’s car buyers with Mait.  

Dealer captive financier AutoNation Finance’s originations rose 66% year over year in 2025. Meanwhile, the retailer’s full-year finance and insurance revenue increased 7.7% YoY to $1.5 billion, which represented 5.3% of total revenue and 29.6% of total gross profit, according to the company’s earnings release. 

Additionally, AutoNation Finance is looking to improve call center operations with the deployment of Balto AI, while Capital One also aims to boost call centers with AI.  

Bank of America is navigating affordability needs of consumer finance customers by expanding its 84-month-term eligibility for auto loans and advancing lending technology, especially in the RV space. 

Other lenders are taking different paths to growth: 

• Huntington Bank expects its $7.4 billion merger with Cadence Bank to drive auto originations  growth; and  
• Fellow bank financier Santander acquired U.S.-based Webster Bank for $12.2 billion on Feb. 6. 

Dealers and lenders continue various strategies for growth in a complicated auto market, as J.D. Power predicts flat retail sales of 13.6 million units in 2026 and declining retailer profit, while projecting that used-vehicle prices could drop as much as 4% this year. 

All of this comes as auto dealers and lenders descended on Las Vegas last week for several key events, including the American Financial Services Association’s Vehicle Finance Conference and Expo, the J.D. Power Auto Summit 2026 and the National Automobile Dealers Association Show. Auto Finance News was on site throughout the events, speaking to lenders, dealers and analysts. Keep an eye out for more news from those event. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez, Senior Editor Truth Headlam and Associate Editor Aidan Bush discuss trends affecting the automotive industry and key updates for the week ended Feb 6. 

Lenders that reported fewer sales and loan originations, according to their respective earnings releases, include: 

• Credit Acceptance Corp.’s consumer loan assignment volume, down 9.1% year over year in its fourth quarter; 
• GM Financial’s Q4 loan lease originations, down 18.7% YoY; 
• OneWater Marine’s F&I revenue, declined 5.4% YoY in its fiscal first quarter; 
• Tesla’s lease portfolio in Q4, dropped 12% YoY; and 
• Volvo’s North American Q4 sales, down 19.6% YoY in Q4. 

However, some financiers reported positive results last quarter: 

• Group 1 Automotive’s F&I revenue climbed 1.9% YoY; 
• Polaris’ Q4 sales climbed 9.5% YoY in Q4; and  
• MarineMax’s F&I revenue for its fiscal Q1 climbed 0.9% YoY and total revenue climbed 7.8% YoY.  

Meanwhile, mergers and acquisitions in the RV and marine industries are on the rise after a yearslong slowdown following the pandemic.  

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Auto originations at Ally Financial, Capital One, Chase Auto, U.S. Bank and Wells Fargo increased year over year, according to the banks’ earnings reports. 

The increases were:  

Ally’s originations rose 4.9% YoY to $10.8 billion; 

Capital One’s originations increased 8.5% YoY to $10.2 billion; 

Chase Auto’s originations ticked up 1.9% YoY to $10.8 billion; 

U.S. Bank’s indirect loan and lease production, mostly comprised of auto loans, grew 2.7% YoY to $1.4 billion; and 

Wells Fargo Auto’s originations soared 104% YoY to $10.2 billion 

Huntington Bank’s auto originations, however, declined 4.6% YoY to $2.1 billion in Q4.  

While Bank of America did not break out auto originations, auto outstandings came in at $55.3 billion, up 0.7% YoY, according to the bank’s earnings supplement. 

Meanwhile, auto credit performance was mixed across major banks in Q4. Ally Financial, Capital One, Chase Auto and Wells Fargo reported YoY dips in auto loans delinquent by 30 days or more. Huntington's auto delinquencies rose, while Fifth Third Bank and Truist reported declines in 30- to 89-day auto delinquencies YoY.  

PNC Financial’s rate of auto loans 30 to 59 days past due was 0.45%, down 9 basis points (bps) YoY, according to the bank’s earnings supplement. 

Bank of America’s net charge-offs across its indirect and direct consumer book, which is largely made up of auto loans, rose 5 bps YoY to 0.22%.  

Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush dive into fourth-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates.  

Chiavaro also served as executive vice president and co-founder of First Associates Loan Servicing from 2010 to 2021. That company was rebranded as Vervent in 2020. The backup servicer took over Tricolor’s portfolio following the company’s Sept. 10 bankruptcy filing.  

Tricolor is under investigation for allegations of fraudulently double-pledging assets to warehouse lines, with former Tricolor Chief Executive Daniel Chu and other former Tricolor executives facing a federal indictment alleging they committed fraud at the company.  

The Tricolor bankruptcy served as a “wake-up call for the industry” and has spurred changes, Chiavaro tells AFN.

In this special episode of the Weekly Wrap, Auto Finance News Founder and CEO JJ Hornblass joins Chiavaro to discuss the collapse of Tricolor Auto, backup servicing operations and risk management.  

Other factors that market participants are monitoring include how fluctuating interest rates and unemployment will affect consumer affordability and car sales. 

In fact, December 2025 sales were projected to fall 3.5% year over year to 1.4 million, according to Cox Automotive. Those figures will be released later this month. 

However, 2025 new-vehicle sales reached the best level in six years, according to a Cox Auto Dec. 17 report. Full-year sales were projected to increase 1.8% in 2025 compared with 2024, according to Kelley Blue Book estimates.  

At the same time, credit access improved in 2025 as fewer banks reported tightening their lending standards. The auto loan rejection rate, however, climbed 1 percentage point YoY in October 2025 to 15.2%. 

Still, retailers such as Tempe, Ariz.-based DriveTime are eyeing growth in 2026 as they navigate the changing auto landscape. Chief Executive Mary Leigh Phillips told Auto Finance News that DriveTime is eyeing double-digit growth across its subsidiaries. 

Tricolor effects 

Among the changes the auto industry will navigate in 2026 are the effects of Tricolor Auto’s collapse, which is still playing out in court. At today’s court hearing, backup servicer Vervent’s responsibilities were outlined and permission was granted for Vervent to use Tricolor funds to pay collateral insurance protection and Texas seller-finance sales taxes.   

Read AFN’s top 5 Tricolor stories in 2025.  

Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack recent auto finance news and provide a look at the year ahead.  

Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.   

The shutdown of several lenders this year combined with inflationary pressures is likely to contribute to more repossessions at the end of 2025 and in early 2026. By Dec. 31, repossession assignments nationally are projected to surpass 10.5 million units for the year, according to American Recovery Association data.  

At the same time, credit performance continued to worsen across securitized nonprime auto loans in November while prime loans had some deterioration. This bifurcation in credit tier performance is expected to continue next year.  

Car sales have also been challenged as consumers face high sticker prices and shift to used vehicles, creating more competition in the market. CarMax’s used-vehicle sales fell 8% year over year in its fiscal third quarter to 169,557 units, while CarMax Auto Finance’s originations declined 9.3% YoY to $1.8 billion.  

Meanwhile, Auto Finance News is pleased to name Sanjiv Yajnik, president of financial services at Capital One, the 2025 Auto Finance Executive of the Year.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across sales, affordability and credit performance for the week ended Dec. 19.

The Texas Department of Motor Vehicles in a Nov. 19 bulletin clarified that documentation required to register vehicles or renew registrations cannot include expired IDs and that passports issued by a foreign country must include documentation proving lawful admission to the U.S. The changes could hamper vehicle sales and lead to an uptick in illegally operated cars, creating collateral risk for auto lenders. 

In the wider market, credit access improved in November even as average transaction prices rose. The Dealertrack Credit Availability Index increased 4% year over year to 99.1 as approval rates, subprime share and the share of longer-term loans rose. The new-vehicle ATP ticked up 1.3% YoY to $49,814, while incentives as a percentage of ATP was 6.7%, down from 7.9% of ATP a year ago.  

High prices are prompting consumers to shift to used vehicles, with banks such as Huntington seeing the mix of originations also shift away from new cars.  

Meanwhile, auto loan delinquency rates are projected to increase next year but the overall rate of growth is expected to slow. Auto loan delinquencies of 60-plus days are forecast to land at 1.54% in Q4 2026, up 3 basis points compared with the Q4 2025 projected rate, according to TransUnion. However, the percentage change YoY is expected to be 1.4% in Q4 2026, down from 2.6% forecasted in Q4 2025. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across compliance, affordability and credit performance for the week ended Dec. 12. 

Automakers including American Honda, Ford Motor, Hyundai, Subaru and Toyota reported double-digit year over year declines in EV sales during the month, while overall sales were mixed. EV sales slowed in November but in Q3 benefited from consumers wanting to take advantage of the federal tax credit of up to $7,500 before Sept. 30, contributing to a jump in new-vehicle EV financing share to 11.4%. 

A strong tax refund season is projected to boost car sales in early 2026 as some consumers lean into the used-car market due to affordability concerns. Used-vehicle values were flat YoY and up 1.2% month over month in November, according to the latest Manheim index. 

In powersports, sales were mixed for the most recent quarter. Canadian powersports manufacturer Bombardier Recreational Products’ North American retail sales declined 4% YoY in its fiscal third quarter ended Oct. 31. RV manufacturer Thor Industries’ net sales, however, jumped 11.5% YoY in its fiscal first quarter ended Oct. 31. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across vehicle sales, pricing, consumer sentiment and powersports for the week ended Dec. 5. 

This episode is sponsored by The Work Number by Equifax.
 

Tricolor backup servicer Vervent and vehicle management company Holman will sell all remaining vehicles, if the motion is approved by Judge Michelle Larson. This includes vehicles that may belong to Tricolor’s creditors, through third-party auctioneers, according to court documents.

The proposal came ahead of former Tricolor Chief Executive Daniel Chu’s motion seeking to shore up $15 million in legal defense funds, according to U.S. Bankruptcy Court of the Northern District of Texas Dallas Division court documents. The funds are from insurance payments made by Tricolor before it went bankrupt, according to the documents.

Across the subprime auto industry, credit health is declining. Early-stage delinquencies across nonprime securitized auto loans rose 88 basis points year over year and the rate of nonprime securitized loans more than 60 days past due rose 65 basis points YoY in October, according to Kroll Bond Rating Agency’s auto loan asset-backed securitization index.

Meanwhile, new-vehicle sales were down in five of the 12 regions covered by Federal Reserve banks, according to the most recent edition of the Fed’s Beige Book. New-vehicle sales were weighed down by declining consumer demand and EV sales.

Automakers offered low APR options and cash-back incentives for Black Friday to stay competitive on rates while balancing affordability concerns. Dealers also expect a short-term dip in wholesale used-vehicle inventory through December as fleet management companies hold onto cars longer.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across the subprime auto market, vehicle incentives and Tricolor’s Chapter 7 bankruptcy for the week ended Nov. 28.

Chadds Ford, Pa.-based Flagship announced on Nov. 21 that it had entered into an agreement to sell the business to New York-based InterVest and would be rebranded to Flagship Financial Group, according to a company release. Once the transaction is closed, Jim Landy will become chief executive.  

Prestige Financial Services also informed dealerships that it was stopping originations as of Nov. 20, according to an email obtained by Auto Finance News.  

Draper, Utah-based Prestige will continue to service its loans and fund contracts received before Nov. 20, according to the email.  

Prestige also reportedly laid off an undisclosed number of employees this month, AFN reported.  

Meanwhile, Tricolor representatives were no-shows at the Section 341 Meeting of Creditors on Nov. 18, which was attended by 150 people.  

The lack of representation was unusual and raised questions about why no one appeared on Tricolor’s behalf.  

In other news, AFN is pleased to recognize 10 auto finance executives to watch in 2026. These leaders have produced noticeable results in their respective organizations in 2025 and are heading transformative strategies into next year.  

Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week’s auto finance. 

CarMax named David McCreight as its interim president and CEO, replacing Bill Nash, effective Dec. 1. Nash is not retiring, and the shakeup comes as the Richmond, Va.-based retailer’s comparable store used-vehicle retail sales are expected to drop between 8% and 12% year over year in the third quarter of its fiscal 2026, according to CarMax’s Nov. 6 release. 

Meanwhile, EV makers Lucid Motors and Rivian saw deliveries jump 46.6% YoY and 31.8% YoY, respectively, in the third quarter ended Sept. 30. 

AI-powered lending platform Upstart also saw growth in Q3, with auto loan originations up 357.1% YoY on issuance of 6,705 loans, according to a Nov. 4 Upstart presentation.  

However, fintech Open Lending saw certified loan volume drop 13% YoY to 23,880, according to its Nov. 6 release. The fall came as Open Lending prepares to roll out a new credit decisioning platform. 

Vroom subsidiary United Auto Credit Corp. also originated $107 million in the third quarter ended Sept. 30, up 7% year over year but down 6.1% quarter over quarter. 

The mostly positive Q3 reports came as auto lenders tightened their credit standards. The average new-vehicle auto loan rate increased 19 basis points month over month in October to 9.6%, according to Cox Automotive. This rise is despite a 25-basis-point cut by the Federal Reserve on Oct. 29. 

Meanwhile, lender Prestige Financial Services reportedly laid off employees in early November, according to posts from former employees. The reported layoffs come as the subprime market faces challenges in affordability and credit performance. 

With these headwinds and elimination of the federal EV tax credit, automakers reported mixed sales in October. Toyota Motor North America saw sales surge 11.8% YoY to 207,910 vehicles, while Mazda’s sales plummeted 32.6% YoY to 25,161 vehicles, according to the companies. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses trends across third-quarter earnings, vehicle values and sales for the week ended Nov. 7. 

Improved loan decisioning, declining interest rates, the use of data and analytics, and responsible growth are top of mind for auto lenders into next year, leaders said at the recent Auto Finance Summit 2025.

The Federal Reserve cut its benchmark interest rate by another 25 basis points (bps) on Oct. 29, prompting lenders to prepare for an uptick in refinance opportunities. However, affordability remains a leading concern, especially for subprime consumers.

In fact, Irvine, Calif.-based subprime auto lender Bayside Credit stopped originating auto loans against the backdrop of challenging macroeconomic conditions.

Subprime credit performance is also a concern in the auto securitization market, with  and lenders that target consumers who may not be legal U.S. citizens experiencing higher-than-expected losses.

In other news, subprime lender Credit Acceptance Corp.’s originations fell 16.5% year over year in the third quarter amid competition and worsening loan performance.

Carvana, on the other hand, posted a 58.8% YoY jump in originations in Q3 and increased its forward-flow agreement with Ally Financial.

In this episode of “Weekly Wrap,” Auto Finance News Associate Editor Aidan Bush discusses trends across underwriting, subprime lending, capital markets and third-quarter earnings for the week ended Oct. 31.

The auto finance industry and asset-backed securitization issuers could benefit from more transparency and consistency in disclosure policies, panelists said during a session on Oct. 21 at FT Live’s ABS East in Miami. 

Auto lenders are reviewing their portfolios following allegations levied against Tricolor for double-pledging of assets on its warehouse lines of credit. Ford Credit reviewed its millions of contracts to confirm they “are either not securitized or we are in one deal and one deal only,” Ryan Hershberger, director of global funding and capital markets for Ford Motor, said during a panel at the show.  

Investors are looking for more information and understanding on how double-pledging could occur, Lendbuzz Chief Executive Amitay Kalmar said at the event. In fact, Credit Acceptance Corp. addressed investor questions in multiple 8-K filings with the SEC as the industry becomes more cautious. 

Meanwhile, third-quarter earnings point to growth at banks, captives and retailers. AutoNation Finance’s originations jumped 85.7% year over year; Capital One’s auto originations rose 17.2% YoY; Lithia Motors’ finance arm Driveway Finance’s originations rose 41.3% YoY; GM Financial’s originations declined 3.5% YoY; and Ford Credit’s portfolio and earnings before taxes increased YoY. 

Auto Finance Summit 2025 also highlighted how auto lenders are using AI and machine learning to track borrower habits, and where consumer sentiment is trending. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, senior associate editor Truth Headlam and associate editor Aidan Bush discuss key takeaways from recent industry events, including ABS East and Auto Finance Summit 2025, as well as Q3 earnings for the week ended Oct. 24. 

Following subprime buy here, pay here lender Tricolor’s Sept. 10 Chapter 7 bankruptcy filing, auto asset-backed securities spreads widened, Kayvan Darouian, director of consumer asset-backed securities research at Deutsche Bank, said during an Oct. 15 presentation at the event. Still, Tricolor’s challenges do not represent issues facing the wider market, he said. 

Further, subprime share has “come back in the last 12 months,” and lenders should be competitive in the near prime sector, Scot Hensel, finance director at Kunes Auto Group, said during a fireside chat at the summit. 

Auto lenders are also leaning into AI and technology to drive efficiencies. GM Financial, for example, is piloting a digital app for dealers to manage their businesses and track information such as deal volume and floorplan balance, President and Chief Executive Susan Sheffield said during a fireside chat. 

Meanwhile, third-quarter bank earnings so far point to growth in auto originations and improved credit performance. Ally Financial’s auto originations rose 24.5% year over year to $11.7 billion, while Wells Fargo Auto’s originations soared 114.6% YoY to $8.8 billion. Bank of America’s net charge-offs across its direct and indirect consumer portfolio also decreased 1 basis point YoY to 0.2%. 

Listen as Auto Finance News Editor Amanda Harris and Associate Editor Aidan Bush dive into the top stories from Auto Finance Summit 2025 and highlight key takeaways from third-quarter bank earnings. 

Auto Finance News today announced 11 powersports executives to watch heading into 2026 who have thus far proven their ability to support lenders, dealers and consumers in a political and economic climate that is also rapidly changing. 

Dealers and lenders are leaning into the used market to drive sales and overall growth in the fourth quarter and heading into next year. In fact, manufacturers including Harley-Davidson are pushing certified pre-owned inventory as consumers search for more affordable purchase options.  

Relationships between dealers and lenders in the auto market are also strengthening as evidenced by Arivo Acceptance becoming the captive finance arm of Ken Garff Automotive Group, news that Auto Finance News broke Oct. 10.  

In other news, Tricolor Auto is reported to have stopped paying rent to some of its landlords ahead of filing for Chapter 7 bankruptcy.  

Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week's auto finance news and unveil some of what attendees can expect at this week’s Auto Finance Summit 2025. 

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. 

This episode is sponsored by The Work Number by Equifax. 

In a court hearing on Oct. 3, Tricolor’s lawyers confirmed that federal law enforcement and regulatory agencies are investigating the buy here, pay here dealer and subprime lender for alleged misconduct and alleged systemic fraud. 

Since Texas-based Tricolor’s Chapter’s 7 bankruptcy filing on Sept. 10, the company’s bond prices have plummeted, signaling that investors believe there is an increased risk of losses, particularly in riskier tranches. 

Meanwhile, third-quarter sales among auto makers climbed as OEMs pushed incentives and consumers pulled ahead their EV sales prior to elimination of the $7,500 federal tax credit on Sept. 30. 

In regulatory news, powersports lenders and dealers are in an interesting position amid the shifting compliance landscape. 

The powersports industry has long been overlooked by regulators, with a fraction of complaints the Consumer Financial Protection Bureau received since 2011 directed at the powersports industry.  

But with the pullback at the CFPB and state regulators and other agencies like the FTC ramping up enforcement, it’s imperative that lenders and dealers don’t do anything to garner enforcement actions.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss Tricolor proceedings, OEM third-quarter sales and powersports compliance for the week ended Oct. 3. 

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. 

This episode is sponsored by The Work Number by Equifax.  

Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain. 

In more common bankruptcy scenarios, assets are liquidated to repay outstanding debt.  

“What makes it a little bit more complicated [with Tricolor] is there's 25,000 creditors in this particular case that have claims here, and some of them have claims against the same collateral,” Brian Bastin, program director for the business and automotive programs at Fort Lauderdale, Fla.-based Keiser University, tells Auto Finance News in this week’s podcast. 

JPMorgan Chase, Origin Bank and Fifth Third Bank all had existing warehouse lines with Tricolor and are just some of those in the long list of Tricolor’s creditors.  

“In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation,” Bastin says, noting that there is a pecking order to claims and payments as a result of liquidating the lender’s assets for its Chapter 7 bankruptcy.  

“In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation.” -- Brian Bastin, program director for the business and automotive programs, Keiser University, 

Consumers should be proactive about making sure that any former loans, title liens, service contracts and warranties are properly dealt with to avoid any road bumps down the road.  

Join Senior Associate Editor Truth Headlam and Keiser University’s Brian Bastin as they break down the potential implications of Tricolor’s bankruptcy for lenders, consumers and the subprime market as a whole in this week’s Weekly Wrap. 

This episode is sponsored by The Work Number by Equifax. 

The Texas-based buy here, pay here retailer and lender closed its dealerships in tandem with its filing for liquidation.  

Since then, ratings agencies Kroll Bond Ratings Agency, Moody’s Ratings and S&P Global placed their ratings on Tricolor securitization transactions under watch for potential downgrades. Backup servicer Vervent Inc. is also prepping to takeover servicing of Tricolor’s portfolio.  

Tricolor’s closure could spark a ripple effect for small subprime lenders, especially after subprime lender Automotive Credit Corp. also indefinitely paused all originations Aug. 7. 

For floorplan lenders, bankruptcies can lead to hundreds of millions of dollars in losses and trigger efforts to recoup losses tied to remaining assets.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the ramifications of Tricolor Auto’s bankruptcy. 

Anderson, Ind.-based Oak Motors’ applications were up 30% year over year at the beginning of September, according to data the dealership group provided to Auto Finance News. The dealership group did not specify the number of applications. The increase comes despite a drop in sales and amid a decline in approvals at the dealership group, which has five locations in Indiana, Executive Board Member Tiger Okeley told AFN. 

“We've seen about a 20% decrease in sales, and that's by design,” he said, without providing specific sales numbers. Oak Motors focuses on identifying consumers who can commit to long-term deal structures that are beneficial to the consumers and the dealership, he said.  

While the BHPH dealership sells as many vehicles as it wants to sell, success depends on finding customers capable of keeping up with weekly payments, Okeley said.  

“If they stop paying us, it didn't matter if we sold them a car,” he said. The bottom line is “we didn't get paid.”  

BHPH is attractive to customers with risky credit profiles or those who don’t have access to traditional financing, Okeley said. Some BHPH dealerships offer customers a chance to rebuild their credit to qualify for traditional financing down the road. 

In fact, an inaugural survey of 1,015 consumers across the country published by Oak Motors on Aug. 15 revealed that 32% of consumers avoided applying for an auto loan due to concerns about their credit score this year.  

Hear more about Oak Motor’s credit survey results, market trends and the state of the buy here, pay here market in this week’s podcast. 

This episode is sponsored by The Work Number by Equifax. 

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. 

Floorplan lenders such as NextGear Capital and Westlake Flooring Services in recent months saw a rise in the volume of fraud and more dealers defaulting on their lines of credit.  

Supporting dealers is a top priority for Ford Credit Chief Financial Officer and Vice President of Strategy Eliane Okamura in the second half of the year, alongside portfolio health and technology advancement, she told Auto Finance News.  

Meanwhile, credit unions have gained market share as they lean back into auto as consumer demand for used vehicles increases amid affordability challenges. 

In powersports, motorcycle dealers saw mixed sales in July as lenders tightened standards, with dealers also scaling back supply. Prices remain high across the industry, with the average selling price of boats up 10% in July. 

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across fraud, affordability, sales and powersports for the week ended Aug. 22. 

On Aug. 7, the bureau filed an advanced notice of proposed rulemaking to change the definition of a larger participant in auto to nonbank entities with up to 1.1 million aggregate annual originations, an increase from 10,000. This followed the CFPB’s July 14 motion filed with the Office of Management and Budget which would rule on the request. 

The change, if approved, would reduce the number of financiers considered larger participants to five from 63, according to the notice. Traditional lenders and nonbank entities would still be subject to state laws even if they are no longer under CFPB jurisdiction.  

While this unfolds, lenders are also working to seize opportunities in the market.  

Auto lenders are continuing to lean into refinance programs on the heels of stabilizing interest rates and consumers’ search for affordability and better loan terms. 

Subprime lender Arivo Acceptance Chief Executive Landon Starr told Auto Finance News that the company is ramping up its refinance program with a goal of $60 million in average monthly origination volume. 

In fact, TransUnion estimates 18 million consumers, or 23% of borrowers with open auto loans, have interest rates that exceed the average APR in the industry.  

Also, average vehicle transaction prices jumped 5.2% year over year in the second quarter to $31,216, according to an Edmunds report published Aug. 12. 

In this episode of the “Weekly Wrap,” Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 15.  

Vehicle repair costs are up 43% since 2019 to an average of up to $1,700 per visit, according to data provided to Auto Finance News by lender Synchrony Financial.

Three factors contributed to the rise, Keith Mait, automotive, oil and gas business leader for Synchrony, told AFN:

• Vehicles are more complex with more expensive technology;
• Customers keep their vehicles longer; and
• Repair shops struggle to find talent.

With longer ownership of vehicles, more repairs are inevitable, he said. While customers are willing to get emergency repairs, many aren’t willing to pay for preventative maintenance.

“Consumers are likely to opt in to the kinds of services that get them back on the road faster and safer,” he said. “They may not immediately agree to do the work that might be proactive.”

Synchrony’s Car Care Credit Card breaks those larger payments into smaller monthly installments, Mait said.

Tariffs to worsen expenses

In a June survey of 1,000 Synchrony’s card holders, just half said they could afford an unexpected expense of $1,000, Mait said.

“The primary word that keeps getting used is ‘anxiety,’” he said. “Consumers are anxious about not necessarily knowing how this is all going to play out.”

The rise in consumer uncertainty comes amid broader inflation and tariff-induced concerns, Mait said. Because parts for repairs are sourced globally, tariffs could “have a major influence on the cost.”

“[Consumers] need to maintain a proactive mindset toward vehicle health,” he said. “If they’re not under warranty anymore, they need to be mindful of the expenses that are coming their way.”

Tune in to “Weekly Wrap” to hear Mait’s conversation with AFN Associate Editor Aidan Bush.

Carvana’s originations soared 51.1% year over year in Q2 to $3.1 billion, while Credit Acceptance Corp.’s originations plummeted 14.6% YoY on a unit basis to 86,486, according to the lenders’ earnings reports.

Captive Ford Credit saw an 88.1% YoY increase in earnings before taxes to $645 million in Q2, though its finance penetration rate of U.S. Ford Motor sales fell to 33% in Q2, compared with 51% a year earlier, according to its earnings report.

Retailers Asbury Automotive and Penske Automotive faced declining finance and insurance profits. Asbury Automotive’s F&I revenue fell 5.4% YoY to $182 million, while Penske Automotive’s F&I revenue dropped 3.9% YoY to $200.5 million, according to the retailers’ earnings reports.
Retailers also saw mixed new- and used-vehicle inventory in Q2. Asbury Automotive reported new-vehicle inventory down 13 days YoY at 49 days’ supply, while used inventory fell one day YoY at 37 days’ supply. Penske’s new-vehicle inventory hit 57 days’ supply, up YoY from 49, while used vehicles fell YoY to 44 days from 47.

Also last week, asset management firms KKR & Co. and Pacific Management Co. agreed to purchase a stake in Harley-Davidson Financial Services and buy more than $5 billion in existing loan receivables, according to a July 30 Harley-Davidson announcement. The announcement came days before Harley-Davidson appointed Artie Starrs, chief executive of Topgolf, to be its new chief executive starting Oct. 1.

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 1. 

Credit access climbed 3.6% year over year and 0.8% month over month in June according to the DealerTrack Credit Availability Index published July 10. This marked the second consecutive month of credit access expansion following a dip in April as consumers rushed to purchase vehicles ahead of expected tariff-induced price hikes.  

The index ended the month at 97.3. 

However, June’s expansion follows mixed reports of credit access as many consumers entered the market with FICO scores up to 100 points lower following resumption of student loan delinquency reporting in the first half of the year. 

These market trends prompted lenders to look for ways to grow without loosening credit standards, Sanjiv Das, president at Pagaya, told Auto Finance News. Pagaya purchases loans that meet its underwriting criteria from lenders and securitizes the loans to fund further originations. 

“Our lenders are gradually starting to lend more,” he said. “They are spending a lot more of their efforts on dealers and building their networks, as opposed to expanding their credit box.” 

Pagaya sees volume growth 

Pagaya reported a 50% quarter-over-quarter increase in the second quarter in its auto annualized run rate, which surpassed $1.1 billion in Q1, according to a May 7 letter to shareholders. However, auto volume decreased 7% YoY.  

“Last year was a relatively tough year for the entire auto industry,” Das said. “When you're in the public markets as a public company, you're always being pushed for growth, until one day that growth story cracks and falls on the other side.” 

Slowed growth pushed Pagaya to focus on maintaining consistent yield for investors, he said. Simultaneously, its lenders reduced volume through the end of 2024, when consumers appeared to be in better shape.  

Consumers seem to be in good shape “through the middle of 2025, and so we have significantly opened up our pipes into our lenders,” Das said, noting that Pagaya increased its volume with lenders because investor appetite has strengthened. 

Ally Financial’s auto originations jumped 12.2% year over year in Q2 to $11 billion, while Chase Auto’s originations ticked up 4.6% YoY to $11.3 billion. But the bigger news was Wells Fargo’s auto originations surging 86.5% YoY to $6.9 billion, according to the banks’ earnings reports. 

Huntington Auto Finance’s originations rose 9.5% YoY to $2.3 billion. Ally Financial and Chase Auto also reported growth in lease volume during the quarter.  

Meanwhile, credit performance improved across most banks in Q2, with auto delinquencies and net charge-offs down YoY. Bank of America’s auto net charge-offs declined 3 basis points YoY to 0.17%. 

Regional bank performance was mixed, with U.S. Bank’s indirect loan and lease originations down 29.1% YoY to $1.4 billion and auto outstandings up at Fifth Third Bank and PNC Financial. 

Also last week, auto lenders dived into trends across automation in underwriting in the Auto Finance News webinar “Digital Strategies for Exceptional Customer Experiences.” 

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended July 18. 

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. To learn more about the 2025 event and register, visit www.AutoFinance.live/AFS.

The bill, signed July 4, could spur additional incentives at the state level and from manufacturers as the federal credits end nearly seven years early. The bill moves the expiration date up to Sept. 30 versus the initial end date of Dec. 31, 2032.  

At the same time, lower prices and more models coming off-lease contributed to an uptick in used-EV sales in May, while new EV sales declined year over year. 

Hybrid sales have also been on the rise, with gas-hybrid sales making up a record 12.6% of total vehicle sales in April.  

In powersports, several Harley-Davidson dealerships have closed their doors amid a dip in motorcycle sales and in tandem with leadership changes at the company.  

Weaker motorcycle sales mirror trends in the wider powersports market headed into the summer months, with powerboat retail sales down 9% YoY through April and North American RV registrations down 5.6% YoY in May. 

On the tech front, Santander Consumer USA has launched a new pre-qualification dealer lead generation tool, and CarMax is gearing up to launch updated versions of its chatbot tools for associates and customers. 

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the latest updates on electric vehicles, incentives, powersports and technology for the week ended July 11. 

Most major manufacturers saw a rise in vehicle sales in Q2, with General Motors and Hyundai Motor America reporting the best first half of the year in terms of sales. June, however, marked a slowdown in sales for some automakers. 

The July 4 holiday brought a mix of 0% financing and cash back offers, with incentive spend varied by brand.  

Meanwhile, credit unions are putting excess lending capacity to work, evidenced by an uptick in application volume at fintech Origence, which provides technology and financing capabilities for credit unions. While application volume rose year to date through June, the fintech’s ratio of funded loans to applications fell due to higher loan-to-value ratios in the market as consumers lean on longer-term loans to manage monthly payments.  

Alloya Corporate Federal Credit Union issued its first asset-backed securitization deal on July 1, a $150 million transaction backed by prime auto loans issued by Blaze Credit Union, Consumers Credit Union and Interra Credit Union.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the latest updates on sales, incentives, funding and capital markets for the week ended July 4.

Second-quarter used EV sales are projected to surpass 100,000 units, setting a record and following a 32.1% year-over-year jump in May to 36,609 units. By contrast, new-EV sales declined 10.7% YoY in May to 103,435 units. 

With strong sales, used EV supply has diminished, reaching a three-year low in May. Used EV inventory was 40 days’ supply in May, down 11% YoY, according to Cox Automotive.  

Uncertainty surrounding the fate of the federal tax credit for new and used EVs is one driver behind consumer demand in recent months, combined with state-level incentives. 

Meanwhile, tariffs and the resumption of student loan payments and credit bureau reporting could impact auto loan credit performance in the coming months.  

In powersports, mixed sales and rising inventories have prompted a wave of promotions from manufacturers that range from increased cash rebates to lowered rates on certain models.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in electric vehicles, credit performance and powersports for the week ended June 27. 

The Dealertrack Credit Availability Index increased 2% year over year in May to 96.7 as credit unions and banks loosened standards and approval rates improved. At the same time, the average new-vehicle transaction price ticked up 1% YoY but was nearly flat month over month at $48,799.  

But as student loan payments resume and that debt is again reported to credit reporting agencies, some nonprime borrowers are turning to credit-builder loans and buy now, pay later programs to improve their credit history and finance downpayments for vehicle purchases. 

Meanwhile, in one of the first actions since the Consumer Financial Protection Bureau undertook a more limited approach to supervision under the new administration, the California State Senate passed a bill that would allow dealers to increase document fees to a maximum of $500. The current processing charges, in effect since 2019, are $85 for new cars and $70 for used cars. 

The change would align the state’s processing fees with that of other states but has received backlash from some consumer advocacy groups that claim the uptick is another “junk fee.” 

In other news, Arra Finance acquired Crescent Bank’s $815 million auto portfolio and plans to grow originations by leveraging the bank’s technology stack and dealer base. 

Other auto finance companies have also seen growth in the first part of the year, including Carvana and Global Lending Services.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and compliance along with company updates for the week ended June 13. 

Prices for every major vehicle segment except compact cars saw a year-over-year increase in May, according to Cox Automotive data published June 6. EV values and used-vehicle values may be normalizing after a pre-tariff purchase surge, according to Jeremy Robb, senior director of economic and industry insights at Cox Auto. 

The rate of 30-day plus auto delinquencies fell 18 basis points YoY in the first quarter, according to an Experian report released June 5. Auto inventory also fell in the regions covered by the Federal Reserve banks of Philadelphia and Cleveland, prompting higher prices, according to the Fed’s June 4 edition of the Beige Book. 

National repossession assignments reached 2.1 million year to date through April, though lenders are delaying filing repossession papers. 

In the nonprime space, lenders are looking at using AI technologies and speeding funding time while preparing to slow their activity in the wake of tariffs, according to panelists at the Non-Prime Auto Financing Conference on June 4 and 5, respectively.  

Amid supply chain concerns and tariff-induced market uncertainty, captives are meeting with their OEM partners and deciding whether to keep incentives they began in response to the tariffs.  

Meanwhile, powersports lender Ironhorse Funding, which funds more than $20 million per month in originations, is seeking over $120 million in forward-flow commitments. 

In the marine world, dealers have reported a rise in repower, or boat engine replacement sales. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and powersports for the week ended June 6.  

As consumers continue to grapple with affordability, which has been further pressured by tariffs, auto refinancers see an opportunity as delinquencies rise. TransUnion’s Q1 2025 Credit Industry Insights Report shows the 60-plus day delinquency rate at 1.38%, the highest first-quarter peak since 2009 during the Great Recession.  

As consumers search for ways to save on costs, PenFed Credit Union’s refinance applications are up 75%, according to Chris Kleczynski, vice president and head of auto lending product strategy.  

Another tariff shakeup occurred last week after a federal court ruled President Donald Trump’s unilateral levies were unconstitutional, though an appeals court reversed the block within 24 hours.  

With a backdrop of tariffs, consumer spending growth slowed, with personal spending up 0.1% in April compared to a 0.7% growth a month prior. 

While some parts of the auto industry are experiencing upticks in sales and pricing in this uncertain environment, the powersports market is declining. Towable vehicle values dropped 9.3% year over year in April. Eric Lawrence, Black Book’s principal automotive analyst, said that the motorhome and towable market will likely experience further decline in the coming months. 

Boat registrations fell 14% YoY in April, according to BMO Capital Markets, and Bombardier Recreational Products noted a drop in retail sales, both related to tariff shocks and uncertainty.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and powersports for the week ended May 30. 

Auto tariffs were a resounding theme throughout the event, as lenders discussed inventory and pricing dynamics, mixed consumer demand and the possibility of longer-term loans to address affordability.  

Against the backdrop of higher vehicle prices and tariffs, Chase Auto and Santander Consumer USA are leaning into relationships with manufacturers to drive growth. 

Auto lenders are also diving into AI and automation to improve customer experience, tap refinance demand and enhance underwriting processes. 

Despite potential elimination of the federal EV tax credit, lenders are bullish on the sector as manufacturers remain committed to electrification goals. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top takeaways from Auto Finance Summit East 2025. 

West Palm Beach, Fla.-based Broward Motorsports of Palm Beach, for one, benefits from offering low-rate financing options through financiers such as Synchrony, Alex Reyes, sales manager at the motorcycle dealership, told Auto Finance News. He said the Synchrony Outdoors credit card provides flexibility for consumers. 

Financing appetite has “grown tremendously” in the powersports market, Reyes said. He has more than 15 years’ management experience in the automotive and powersports industries.

Meanwhile, promotions across the market have been largely steady over the past few months, Synchrony Senior Vice President Susan Medrano, who is also general manager of Synchrony Outdoors, told AFN. Synchrony also helps educate dealers on what financing options and promotions may work best for their customer base that will meet the dealership and manufacturers’ goals.

Listen to this special episode of the “Weekly Wrap,” podcast, as Synchrony’s Medrano and dealership manager Reyes join Auto Finance News Editor Amanda Harris to discuss financing and sales trends during National Small Business Week, which takes place May 4-10. 

Chat Concierge answers customer queries and can help with tasks such as comparing available vehicles and exploring financing options online before consumers head to a dealership.  

In building its tech stack, Capital One reviewed how consumers use AI-based tools, the types of questions they ask, and how digital communication can be used to drive customers into the dealership, Annie Fallows, head of the bank’s dealer-facing Navigator Platform, told Auto Finance News. Navigator Platform, launched in 2023, allows dealers to access information such as inventory searches and pre-qualification to provide more accurate financing offers to customers. 

“We made an intentional choice that we wanted to lead with being helpful versus lead with immediately trying to collect [a customer’s] name and contact info,” she said. “Our dealers are able to take all that information about what's happened on the chat to pick up in store and get to that car sale that everyone is working for. This is just the beginning of the journey.” 

The bank is reviewing ways to improve Chat Concierge and apply it to other operations both internally and externally, Fallows said, “whether that’s making our associates more effective [or] looking at additional places in the dealer process that would benefit from this type of interaction.  

“We’re at the beginning of a new journey, and it starts with making sure that our models and our technology are working the way that they're intended and providing high-quality interactions.” 

Capital One’s auto originations rose 22.4% year over year in the first quarter to $9.2 billion, while the bank’s auto book ticked up 5.2% YoY to $77.7 billion, according to the bank’s April 22 earnings supplement. 

During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Capital One’s Fallows discuss the latest trends in customer experience, dealer relations and technology. 

Ally Financial’s auto originations increased 4.1% year over year as lease originations were up 28.6% YoY. The bank’s retail auto delinquencies declined 9 basis points (bps) YoY to 3.79%. 

Across the regional banks, Huntington Bank’s auto originations rose 25% YoY, while U.S. Bank’s indirect loan and lease originations were down 27.3% YoY. 

Fifth Third Bank, PNC Financial and Truist joined several auto lenders in reporting declines in delinquencies and credit losses in Q1. 

Meanwhile, new-vehicle affordability hit the best level in 45 months in March but auto tariffs are expected to lead to price increases and contribute to lower sales in the coming months.  

Prolonged tariffs are also projected to contribute to a decline in auto asset-backed securitization volume and increased delinquencies across securitized auto loans. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editor Aidan Bush discuss Q1 bank earnings and top trends across affordability and consumer health for the week ended April 18. 

Auto loan approval rates and subprime share increased in March, contributing to improved credit access.

Increased demand ahead of the tariff-induced price hikes led to a surge in vehicle sales in March, while Q1 bank earnings so far reflect strength in originations.

CarMax Auto FinanceChase Auto and Wells Fargo Auto all saw year-over-year originations growth, with originations up 6%, 20.2% and 12.2%, respectively. However, ongoing economic uncertainty could affect lenders’ strategies. For example, CarMax announced it will shift its long-term growth timelines due to macroeconomic concerns.

Meanwhile, a proposed Senate bill could make auto loan interest tax deductible for U.S.-made cars, but some legal experts say the bill’s language does not clearly define a U.S.-made vehicle.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editor Aidan Bush discuss pre-tariff vehicle prices, credit access and earnings trends for the week ended April 11.

Shares of the three major U.S. automakers — Ford, General Motors, and Stellantis — fell sharply at market close on April 3, dropping 5.9%, 4.3%, and 9.4%, respectively, as the tariffs officially took hold. 

In response, Ford and Stellantis announced on April 4 that they will extend employee pricing to all consumers, while Stellantis and GM unveiled major production adjustments aimed at mitigating the expected rise in vehicle prices. 

The looming price hikes also spurred a sales surge in March, as consumers rushed to buy ahead of anticipated increases. 

As automakers react to tariffs, subprime lenders are still searching for a post-pandemic “new normal,” approaching 2025 with cautious optimism. Lenders are working to strike a balance between risk appetite and maintaining credit performance, prompting some to strategically pull back from lending to undocumented borrowers. 

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer and Associate Editor Aidan Bush unpack the initial fallout from the new tariffs and preview what’s ahead as the industry braces for long-term impacts. 

Auto stocks slumped on March 26 after confirmation that the tariffs will take effect as planned. The Big Wheels Stock Index fell 2.8% by market close, marking a sharp drop that has continued as the tariff deadline approaches.  

That market dip comes alongside fresh signs of consumer unease. U.S. consumer sentiment fell to its lowest level in more than two years in March, while long-term inflation expectations jumped to a 32-year high. The University of Michigan’s final sentiment index dropped to 57 in March, down from 64.7 in February. 

Meanwhile, industry performance dipped as tariff fears set in, auto loan rejection rates crept up.  

The Auto Finance Composite Index landed at 135.06 in February, down 14% year over year and 3.4% month over month. The index, factoring multiple datasets, measures whether the auto finance market is performing positively or negatively.   

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer breaks down the key takeaways from last week’s tariff developments, other top stories through March 28, and what’s ahead as the industry braces for the tariff impact. 

This episode is sponsored by Earnix.  

Credit performance worsened in Q4, with 60-day delinquencies up 4 basis points year over year to 1.16% of auto loan balances, according to Experian. However, the rate of increase for past-due balances has slowed compared with a year ago and in 2022. 

“We've been steadily increasing for the past several years on that 60-day delinquency standpoint,” Melinda Zabritski, head of automotive financial insights at Experian, told Auto Finance News. “While it is at one of the peaks, it's unlike what we saw with the recession, where delinquency pretty much came out of nowhere. I wouldn't say anyone has been surprised with the increased levels of delinquency.” 

Leasing is also picking up as consumers look for lower monthly payments and EVs drive higher share. Lease share industrywide rose to 24.5% in Q4 from 22.6% a year prior, according to Experian. Indirect auto lessor Cal Automotive, for one, is expanding in Florida as lease penetration rises in tandem with high interest rates and monthly payments. 

Meanwhile, banks picked up market share in Q4 while credit unions scaled bank and captives continued to lead, largely driven by incentives, Zabritski said.  

During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Experian’s Zabritski discuss trends in affordability, pricing, auto tariffs, EVs and credit performance. 

Auto Finance News’ March 11 webinar “Funding Strategies: From Warehousing to Private to ABS” shed light on interest from private investors in auto and the amount of money that is available to originators.  

Insurance companies arelarge players in backing private investment in auto, especially as lenders consider diversifying their funding sources to include asset managers alongside banks and public capital markets. 

Meanwhile, late-stage delinquencies rose in the fourth quarter but the pace of increase is stabilizing compared to large upticks in 2022 and 2023. 

As tax refund season approaches, affordability and credit access improved in February while average transaction prices saw a slight uptick.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses the top takeaways from last week’s funding webinar along with other top stories for the week ended March 14. 

The auto industry has prepared for an "adjustment period" as 25% tariffs on Canada and Mexico were set to take effect on March 4. President Donald Trump announced a one-month delay the next day. 

The Federal Reserve’s latest Beige Book showed signs of worry   as uncertainty trade policy sets in, with tariffs likely to raise car prices. 

Meanwhile, AI-driven lending platform Upstart is enhancing its auto refinance technology to enable consumers to complete the process seamlessly, without document uploads and with minimal human involvement. 

Agentic AI is also growing in financial services as lenders look to enhance customer experience.  

Capital One is using agentic AI at dealerships to streamline car buying, allowing customers to access information, schedule test drives and compare vehicles online. 

The Auto Finance News team will publish a feature today detailing the use of agentic AI in the sector.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends including economic uncertainty and AI in auto finance for the week ended March 7. 

This episode is sponsored by Earnix.

Auto loan delinquencies are projected to cool in the second quarter as the market stabilizes, improving lenders’ appetite for auto credit. Auto originations are also expected to increase between 12% to 20% as tax refunds boost consumer demand. 

Refinance volume is expected to pick up in 2025 as interest rates decline and lenders revamp their refi products to tap into consumer demand.  

Rates and vehicle prices also will define sales and pricing trends across the automotive industry as pending tariffs are poised to raise car prices by thousands of dollars. On the EV front, possible changes to federal tax credits could impact sales even as EV prices and battery costs continue to decline. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends impacting vehicle sales, pricing and consumer demand for the week ended Feb. 28.  

“For the used EV market, if you want to describe it in one word right now, it's ‘volatile,’” Paul Fortin, co-founder and head of automotive products at Exponential Markets, told Auto Finance News. 

“The reason it's volatile is that the overall -car market right now is also volatile. There's uncertainty with macroeconomic variables, there’s uncertainty with industry variables, and there’s a normal volatility that exists,” he said.  

In the short term, with talk of federal tax incentives being eliminated, consumers are rushing to purchase a used EV or lease a new one before the incentives are removed, Fortin said. 

In January, used EV sales increased 30.5% year over year, reaching 26,933 units, while the supply of used EVs tightened to 45 days’ supply, down 23.3% YoY, according to a Feb. 20 report by Cox Automotive. 

Meanwhile, after declining in January, the Exponential Electric Vehicle Index, measuring wholesale prices of used EVs and inventory awaiting sale, landed at 91.88 as of Feb. 20, up 1.6% year to date, and 4.2% YoY. 

 “In the short term, you have these forces that are pushing values up,” Fortin said. “On the longer term, you have these forces that are pushing [values] down.” 

During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Associate Editor James Van Bramer discusses used EV price volatility with Exponential Markets’ Fortin.  

Subscribe to “The Roadmap Podcast” on iTunes or Spotify, or download the episode.  

Auto retailers Asbury Automotive and Group 1 Automotive in the fourth quarter reported a double-digital year-over-year increase in finance and insurance revenue as sales rose.  

Ford Credit also reported Q4 earnings last week. The captive’s U.S. and Canada consumer loan and lease outstandings increased 8.4% YoY to $89.2 billion as lease volume picked up and credit losses rose. 

In powersports, Harley-Davidson Financial Services’ originations declined 16% YoY in Q4 and provisions for credit losses rose 27% YoY. North American retail sales of Harley-Davidson motorcycles also decreased 13% YoY, while sales of LiveWire electric motorcycles fell 54% YoY.  

The AIM Expo Tradeshow last week in Las Vegas highlighted stable promotional activity across the industry along with trends in technology adoption and motorcycle sales. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss trends in compliance, sales, earnings and powersports for the week ended Feb. 7. 

Subprime lender Credit Acceptance Corp.’s originations ticked up 0.3% year over year in the fourth quarter to 78,911 loan assignments as the financier grew its number of active dealers.  

Negative equity and rising delinquencies continue to be a concern for auto lenders as consumers navigate changing vehicle values and inflationary pressures.  

Meanwhile, looming tariffs against Canada and Mexico are expected to drive car prices higher, likely exacerbating dealers’ challenges related to supply, profit margins and sales. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss nationwide trends affecting the automotive industry and key updates for the week ended Jan. 31. 

“Delinquency rates for captives have come down and they are improving,” Michael Brisson, director of economic research at Moody’s Analytics, tells Auto Finance News in today’s “Weekly Wrap” podcast.  

Captives will likely maintain increased appetite in the auto market given that they can “increase incentives not just through cash on the hood but through inverted rates, which helps out OEMs in terms of moving product,” he adds. 

Banks and credit unions, however, are going to “remain in a wait-and-see mode” as delinquencies in the fourth quarter continued to inch up but at a slower pace than before, Brisson says. 

Lenders’ “wait-and-see mode” reflects industrywide uncertainty following executive orders signed by President Donald Trump on Jan. 20. 

One signed order focused on eliminating federal EV subsidies could hamper automakers’ and consumers’ willingness to invest in eco-friendly vehicles this year. Another, which is focused on trade policy, highlights Trump’s plan to impose 25% tariffs on products from Canada and Mexico by Feb. 1.  

Trump’s hopes for added tariffs could fuel pricing instability by driving up vehicle values, adding to affordability woes and increasing automakers’ production costs.  

“The Trump administration's executive orders don't do anything right away, and there is nothing that was concrete put in place.” Brisson says. “However, in the minds of consumers, things have changed.” 

That said, there are bright spots in the market as Cox Automotive projects a year-over-year sales increase in nearly every market segment. 

Cox Auto projects: 

• New-vehicle sales will increase 2.8% YoY to 16.3 million units at yearend 2025, the best year for new-vehicle sales since 2019; 
• EV total market share will hit 10%, up from about 7.5% in 2024, making approximately one in every four vehicles sold or leased an EV in 2025; 
• Full-year used-car sales will reach 20.1 million units, up 1.2% YoY; and 
• CPO sales will decline 1.6% YoY to 2.5 million units in 2025. 

Listen to today’s episode of the “Weekly Wrap,” as Auto Finance News Associate Editor Ashley Savage discusses the auto finance landscape for 2025 with Brisson. 

The annual cost of full-coverage car insurance in California rose 47.8% year over year in December to $2,575, compare with the average cost across the U.S. of $2,313. The current fires started Jan. 7.  

Meanwhile, lenders’ funding activity is off to a strong start in 2025 with several issuing asset-backed securitization (ABS) deals. Lendbuzz issued its first auto ABS deal of the year, joining a wave of transactions during the first two weeks.  

Southern Auto Finance Co. also secured a $100 million warehouse facility with Deutsche Bank and extended its facility with Capital One.  

Auto sales were strong in the fourth quarter of 2024 across the major manufacturers, and EV sales are poised to pick up in the first quarter of 2025 ahead of the presidential administration change.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss the top stories and trends impacting the automotive industry for the week ended Jan. 10. 

The most-read stories of 2024 highlight readers’ interest in how financial institutions navigated affordability challenges and managed risk while looking to maintain or grow their auto books.  

Technology was core to lenders’ efforts in tapping into new consumers, improving customer experience and making operations more efficient to save time.  

In powersports, the market largely slowed in 2024 as high costs deterred some buyers but manufacturers and lenders looked for ways to drive sales through promotions and new financing products.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss the top stories and trends of 2024.  

Floorplan providers First Business Bank and NextGear Capital have seen a boost in their portfolios as dealers use more of their floorplan lines of credit for inventory and banks scale back in asset-backed lending, including auto. A higher percentage of banks are projected to tighten credit in early 2025 as consumer demand for auto financing is expected to weaken, according to a new Auto Finance News forecast. 

Higher prices add to affordability challenges, with the average transaction price up 1.5% year over year in November. Incentives helped boost sales and contributed to captives’ lead in new-vehicle financing in the third quarter. 

As 2024 ends, affordability remains the prevailing challenge for consumers, dealers and lenders across the auto finance and powersports finance markets. 

In powersports, sales fell 5.4% YoY in November as dealers faced elevated inventory levels, higher floorplan costs and mixed demand. 

Meanwhile, Hyundai Capital America President and Chief Executive Marcelo Brutti was named the 2024 Auto Finance Executive of the Year. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer look back at trends in 2024 and discuss top-of-mind challenges headed into 2025. 

High car prices have contributed to affordability pressures for consumers, but incentives are helping drive sales. The latest edition of the Beige Book, citing data collected on or before Nov. 22 by the Federal Reserve, highlights areas of the country where sales activity has rebounded with incentives, while inventory continues to build. 

EV sales also grew in November, with nearly every major OEM reporting YoY increases. EV financing share rose 30.7% YoY in the third quarter, making up 10.1% of total new-vehicle financing.  

In powersports, Bombardier Recreational Products’ North American retail sales decreased 11% YoY while product revenue also declined.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss trends in vehicle pricing, EV sales and powersports finance for the week ending Dec. 6.  

Car shoppers saw some relief over the holiday weekend as Black Friday deals offered low interest rates and cash-back incentives.  

Lenders are also focused on sustainable growth. U.S. Bank is investing in digital capabilities across auto, recreational vehicle and marine product financing. It aims to support growth as rates decline.  

Meanwhile, a rise in negative equity is adding to challenges for dealers looking to sell add-on products such as maintenance plans, even while loan-to-value ratios are pushed to their limit.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends facing the automotive industry for the week ended Nov. 29.

New-vehicle registrations among near prime and nonprime consumers increased 1% year over year and 7% month over month to 161,435 in the second quarter, highlighting an increase in supply and incentives for consumers, according to a report from automation fintech Open Lending published Nov. 15.  

The increase in new-vehicle purchases reflects a slight boost in consumer confidence following the rate cuts but also highlights ongoing supply and pricing issues in the used-vehicle market, Kevin Filan, senior vice president of marketing with Open Lending, tells Auto Finance News. 

In this episode of the “Weekly Wrap,” Auto Finance News Associate Editor Ashley Savage discusses nonprime and near prime registrations, interest rates and refinance opportunities with Filan. 

Subscribe to “The Roadmap Podcast” on iTunes or Spotify, or download the episode.

Originations totaled 6.4 million contracts in the second quarter, up 0.7% year over year, according to the latest data from TransUnion. The return of leasing and an uptick in incentives are helping address affordability concerns and drive sales.  

As of October, the average transaction price (ATP) of a new vehicle landed at $48,623, up 1.7% YoY, according to Kelley Blue Book. New-vehicle incentives climbed to 7.7% of ATP compared with 5% of ATP in October 2023. 

Meanwhile, auto loan demand weakened in the third quarter while banks’ credit standards remained steady.  

In powersports, inventory levels continued to build as sales declined 6.3% YoY in October, according to BMO Capital Markets data.  

Synthetic identity fraud also is a rising concern in the powersports industry, with an uptick in fraud contributing to stolen RVs and mirroring concerns in the automotive finance industry.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editors James Van Bramer and Ashley Savage discuss trends in originations activity, pricing and the powersports market.  

Overall sales increased for American Honda, Ford Motor Co., Hyundai Motor America, Mazda North America and Subaru of America in October. Volvo, however, saw U.S. sales fall 17% year over year to 9,360 vehicles. 

American Honda’s EV sales rose 31.1% YoY in October. Honda joined Hyundai Motor America and Volvo in reporting EV sales increases.  

Ford Motor Co., however, saw EV sales dip 8.3% YoY while hybrid sales increased 38.5% YoY in October. BMW Group saw U.S EV sales fall 5.9% YoY to 12,311 units.  

Meanwhile, AI-driven lending platform Upstart reported a 46% sequential increase in auto loan originations after it began to redesigning its platform. Upstart’s auto originations totaled $26 million, down 9% YoY. 

Also last week, Lucid Motors posted an increase in third-quarter deliveries while production disruptions led to delivery and revenue declines for Rivian Automotive. 

In Powersports, Octane Lending closed a $326 million issuance in the asset-backed securitization (ABS) market on Nov. 7 as the company preps for further growth.  

Last week’s transaction follows Octane’s $365 million ABS issuance on July 11 and aligns with the New York-based lender’s goal of one ABS transaction every quarter, depending on market conditions. 

In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss key takeaways from third-quarter lender and retailer earnings and the latest news on auto lease ABS issuance volume. 

Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.  

Carvana posted a 35.5% YoY increase in originations in Q3 as retail sales jumped 34.2% YoY and 7.1% quarter over quarter to 108,651 units. The increase in originations comes as the financier and retailer saw “record performance in virtually every key financial measure,” Carvana Chief Executive Ernie Garcia said during the company’s Oct. 30 earnings call.  

Subprime lender Credit Acceptance Corp.’s (CACC) consumer loan assignments increased 17.7% YoY but fell 4.4% sequentially on a unit basis to 95,670, according to its Oct. 31 earnings release. CACC’s consumer loan assignments rose 12.2% YoY on a dollar basis. 

Similarly, AutoNation Finance’s year-to-date originations grew to more than $700 million in the third quarter amid efforts to reach $1 billion in total originations this year. 

In powersports, boat manufacturer Brunswick’s boat sales sank 19.4% YoY and 20.5% sequentially to $345.3 million in the third quarter. The manufacturer’s full-year retail expectations, which were adjusted in Q2, are estimated to drop by about 10% YoY, according to the earnings release. 

In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss key takeaways from third-quarter lender and retailer earnings and the latest news on auto lease ABS issuance volume. 

Bank of America’s auto originations rose 16.2% year over year to $7.9 billion in the third quarter, while U.S. Bank’s indirect auto loan and lease originations jumped 65% YoY to $1.8 billion. Huntington Bank’s auto originations rose 71.4% YoY to $2.4 billion.  

Ally Financial’s originations, however, declined 11.3% YoY to $9.4 billion in Q3. 

Other regional banks’ portfolios saw slight growth in Q3, with Fifth Third Bank’s auto outstandings up 3.3% YoY to $15.9 billion and PNC Financial’s auto portfolio up 1.3% YoY to $15.1 billion. Truist’s auto portfolio declined 11.1% YoY to $22.1 billion. 

Meanwhile, affordability was a resounding theme throughout Auto Finance Summit 2024 last week, with executives highlighting challenges related to rising consumer debt, slowly declining interest rates and worsening credit performance. 

In this episode of the “Weekly Wrap” Auto Finance News Editor Amanda Harris and Associate Editor Ashley Savage discuss key takeaways from third-quarter bank earnings and Auto Finance Summit 2024.  

Wells Fargo’s auto originations hit $4.1 billion in Q3, up 11% sequentially and unchanged compared with Q3 2023, according to the bank’s earnings supplement published Oct. 11.  The bank's auto loans 30-plus days delinquent remained flat sequentially at 2.3%, down from 2.6% during the same period last year. 

Chase Auto, however, saw origination volume inch down quarter over quarter and YoY in the third quarter while delinquencies inched up. Chase’s auto originations fell 7.7% sequentially and 2% YoY to $10 billion in Q3, though the lender maintained “strong margins and high-quality credit,” Chief Financial Officer Jeremy Barnum said on Chase’s Oct. 11 earnings call. 

Meanwhile, Octane Lending announced last week that the company has entered the marine market, driven in part by Octane’s desire to bring new technology and efficient financial solutions to the market, Mark Davidson, co-founder and chief growth officer at Octane, said on Oct. 11 at PowerSports Finance Summit 2024 in Las Vegas. 

In this episode of the “Weekly Wrap” Auto Finance News Associate Editors James Van Bramer and Ashley Savage discuss growth and performance trends for the week ending Oct. 11.  

Delinquencies and losses rose across prime and nonprime securitized auto loans in Kroll Bond Rating Agency’s August auto loan asset-backed securitization index published Sept. 23. Prime recovery rates increased while nonprime recoveries declined.  

CarMax Auto Finance (CAF) also increased its provision for credit losses by 25.4% to $112.6 million for the fiscal second quarter of 2025, ended Aug. 31, according to the company’s earnings release. CAF’s finance income fell 14.4% year over year to $115.6 million, while originations ticked down 1.7% YoY to $2.2 billion.  

Meanwhile, multiple auto lenders are preparing for growth in the coming year. Affinity Federal Credit Union is looking to add to its dealership base in New York, New Jersey and Pennsylvania as it steps back into leasing after a three-year hiatus.  

SameDay Auto Finance is planning to double its portfolio to about $60 million within the next two years after expanding into Oklahoma and prioritizing top-performing dealerships.  

Auto Finance News is also pleased to highlight nine powersports finance executives to watch in 2025 following a turbulent first half of 2024, but with optimism heading into the 2025 season.  

In this episode of the “Weekly Wrap” Auto Finance News Editor Amanda Harris and Associate Editors James Van Bramer and Ashley Savage discuss growth and performance trends for the week ending Sept. 27. 

Nearly 8.5% of new purchases were EVs, and more than 46% of those are leased, according to Experian’s second-quarter state of the auto market report, published on Sept. 5. 

Part of the drive in EV leasing is affordability. The average payment difference between a lease and a loan across all EV models is $88 per month, according to Experian. EV lease deals often qualify for the $7,500 tax credit under the Inflation Reduction Act.  

Used EV values have continued to fall and were down 11% year over year in August, according to the Exponential Used Vehicle Index, which measures price changes for wholesale electric vehicles, considering models, vehicle features and mileage.  

Still, only 34% of consumers are preparing to buy an EV in the next two years, down from 48% a year ago, according to the 2024 Consumer Mobility Index from EY, which provides insights on capital markets. 

In this special episode of “The Roadmap,” Auto Finance News Associate Editor James Van Bramer discusses how to tap into EV leasing and declining used EV values with John Possumato, founder and chief executive of DriveitAway, and Elena Ciccotelli, founder and host of the “EVs for Everyone Podcast.”  

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. To learn more about the 2024 event and register, visit www.AutoFinanceSummit.com. 

The used-car turnover rate rose 8.4% year over year in August to 43 days for franchise dealers, signifying that inventory is being sold quickly.  

As consumers look for more affordable cars, inflationary pressures weigh on credit performance. Auto loans 30-plus days delinquent increased 16 basis points YoY to 2.88% in the second quarter.  

Credit access tightened in August, with the Dealertrack Credit Availability Index down 0.5% month over month and 1.7% YoY to 92.5.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editors Ashley Savage and James Van Bramer discuss the updates in affordability and sales for the week ending Sept. 13.  

Ford Motor Co. joined Harley-Davidson, Tractor Supply, John Deere and Polaris in publicly announcing changes to their DEI programs, including in how the companies define and measure DEI at the organizations. Still, several auto lenders are maintaining their inclusion-based DEI initiatives. 

Meanwhile, market share data last week shows that incentives are driving up captive market share, especially on the new-vehicle side.  

August sales also reflect improved hybrid vehicle sales, which contributed to a 12% month-over-month uptick and an increase of 8% year over year in total sales.  

In powersports, Canadian powersports manufacturer Bombardier Recreational Products’ North American retail sales declined 18% YoY in the company’s second fiscal quarter driven by softer demand and increased competition with incentives.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editors Ashley Savage and James Van Bramer discuss the latest feature and an update on vehicle sales for the week ending Sept. 6.  

The Consumer Financial Protection Bureau this month published a letter to the U.S. Treasury making it clear that emerging AI-based technology isn’t exempt from long-standing consumer protection laws. Lenders must test and monitor the use of new technology and tools and ensure that they convey accurate information to consumers.  

At the same time, the CFPB’s funding is under scrutiny again, as new arguments question whether the bureau should receive money when the Federal Reserve isn’t profitable. Under the Dodd-Frank Act, “the combined earnings of the Federal Reserve System” are supposed to fund the CFPB.   

In powersports, inventory continues to be a challenge across every market segment, spawning elevated promotions to drive sales and operational changes to meet changing consumer demand.  

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editors Ashley Savage and Jameso Van Bramer discuss top trends in compliance, technology and powersports for the week ended Aug. 23. 

In powersports, Harley-Davidson Financial Services’ originations ticked down 4% year over year in Q2 and retail finance receivables were flat YoY at $7 billion. 

U.S. Bank originated $1.9 billion in Q2, up 21.5% year over year while outstandings fell 30.6% YoY to $8 billion. PNC Financial’s auto outstandings dipped 1.6% YoY to $14.8 billion, and Citizens’ auto book continued to run off. Ally Financial originated $639 million in battery EV and hybrid leases during Q2.

Powersports sales slowed in June. 

In powersports, RV and marine manufacturer Winnebago Industries’ promotional liabilities decreased 26.4% year over year as demand for RVs was sluggish during Q3.

In powersports, Canadian manufacturer Bombardier Recreational Products’ North American retail sales fell 5% year over year. Motorhome values, too, fell 9.4% YoY in April while towables values declined 7.2% YoY. Recreational vehicle values increased sequentially, in line with seasonal demand. 

Meanwhile, auto credit availability improved across all lender types in March.

The ancillary product market is also a hot topic for regulators as the Consumer Financial Protection Bureau and the FTC look closely at how lenders manage the addition of aftermarket products within retail installment contracts and how financiers issue refunds when add-on products are canceled.  

Lower interest rates and low unemployment also drive economists’ prediction of a soft landing in 2024. 

More than 27% of prime and superprime consumers chose to lease their vehicles in Q3, up from about 21% a year earlier, driven by lower payments compared to financed purchases, according to Experian.  Deals are also helping prompt leasing, with several OEMs offering low-rate and cash incentives on leases. 

Auto lenders are tightening credit and the whole industry is keeping a close eye on delinquencies and rising defaults.  

Last week, the Bank Automation Summit shed light on lenders’ shift to cloud technology and efforts to satisfy compliance and regulatory guidelines.   

Affordability is becoming a growing concern in the automotive industry in the face of a looming recession. In fact, economists at analytics company S&P Global last week increased the chance of a recession to 40% over the next 12 months. 

Also last week, Consumer Portfolio Services (CPS) looked to revamp its operational strategy and focus on growth by doubling its credit facility with Ares Agent Services.

New-vehicle sales are projected to slump year over year in June, with the retail seasonally adjusted annualized rate (SAAR) falling 2.3 million units to 11.3 million, according to a joint forecast from JD Power and LMC Automotive. That’s still an improvement from May’s figure of 10.9 million units, however, according to the forecast. 

 Separately, four U.S. Senators reintroduced the E-SIGN Modernization Act designed to eliminate outdated regulations that require customers to prove they can receive documents electronically before opting to receive digital versions. 

In this episode of the Weekly Wrap, Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss key takeaways from the 2021 Auto Finance Summit, and what’s in store for the upcoming week.  

Ally joins a growing list of lenders this quarter to post some of the highest origination volume in years. Ally broke a 15-year record, with originations clocking in at $12.3 billion, up 25.5% year over year from a record 3.3 million decisioned auto applications. This follows similar trends seen in Q2.

Citizens One Auto, too, saw another strong quarter of originations. The lender’s auto portfolio increased 12.1% YoY to a record $13.5 billion.

However, while supply has led to shrinking commercial business for auto lenders, the consumer portfolio continues to perform well. U.S. Bank logged a 22.4% YoY increase in auto oustandings to $23.5 billion.

Meanwhile, the co-founders of the now-defunct subprime auto lender Honor Finance are facing further legal action in a case that dates back to 2018. A Securities and Exchange Commission complaint, filed with the U.S. District Court for the Northern District of Illinois, accuses James Robert Collins and Robert Frank DiMeo of defrauding investors.

Dealers have had mixed reactions to the potential shift, with lower floorplan costs being a positive and build-to-order wait times a concern. 

Rideshare, too, represented a positive note for the auto industry as active riders return to the market. Meanwhile, the pandemic continues to impact how auto lenders conduct business.