Nonbank auto lenders may soon have a reason to celebrate, following a proposed rule change by the Consumer Financial Protection Bureau to how it defines larger participants of the auto market. 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 B...
Aug 18, 2025•7 min•Ep. 287
Amid sustained inflation, more high-tech vehicles in the market and tariff-induced uncertainty, aftermarket repair costs are steadily climbing. 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 ...
Aug 11, 2025•20 min•Ep. 286
Auto companies saw mixed results in the second quarter related to sales and finance volume, as Carvana’s originations surged, Ford Credit’s earnings rose and Credit Acceptance Corp. and Penske Automotive faced declines. 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...
Aug 04, 2025•7 min•Ep. 285
Pagaya Technology’ s lenders are leaning on the expansion of their dealership networks for growth as credit quality worsens and credit access remains mixed. 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 end...
Jul 29, 2025•28 min•Ep. 284
Ally Financial, Chase Auto and Wells Fargo Auto all reported an increase in auto originations in the second quarter, driven in part by a pull-ahead in car purchases by consumers anxious to buy before tariff-induced price rises. 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’ ear...
Jul 21, 2025•10 min•Ep. 283
President Donald Trump’s One Big Beautiful Bill marks the end of the federal EV tax credits at a time when sales of used EVs and hybrids are ramping up and new EV sales are slowing. 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 contr...
Jul 14, 2025•9 min•Ep. 282
Second-quarter sales of new autos were mixed following a spike in March and April ahead of tariffs taking effect, while incentives were robust during the Independence Day holiday weekend. 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 incent...
Jul 07, 2025•7 min•Ep. 281
Sales of used electric vehicles are ramping up as it becomes more likely the federal EV tax credit will end and as off-lease EVs return to market. 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, d...
Jun 30, 2025•8 min•Ep. 280
Listen to this special episode of the “Weekly Wrap” podcast, as Black Book’s Lawrence and National Powersport Auction’s Amata join Auto Finance News Associate Editor Aidan Bush to discuss motorhome and towable trends for the week ended June 20.
Jun 23, 2025•19 min•Ep. 279
While credit access improved in May and vehicle prices were steady, affordability remained a concern, especially for credit-challenged consumers who face multiple forms of debt. 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 ...
Jun 16, 2025•7 min•Ep. 278
Amid increased vehicle values, a rise in vehicle repossessions and continued tariff-induced uncertainty, Auto and powersports players are implementing new leadership, positioning themselves for growth and weighing incentives to weather macroeconomic challenges. 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, ac...
Jun 09, 2025•10 min•Ep. 277
Major players in the auto and powersports industries continue to adapt to the rapidly changing macroeconomic environment teeming with the effects of tariffs and rising inflation. Where some see opportunity, others see indications of a challenging fiscal year. 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 delinque...
Jun 02, 2025•6 min•Ep. 276
Uncertainty defined much of the conversation at Auto Finance Summit East 2025 last week in Nashville, Tenn., with auto lenders highlighting affordability, auto tariffs, EV dynamics and technology as top-of-mind considerations headed into the rest of the year. 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 ...
May 19, 2025•5 min•Ep. 275
Powersports lender Synchrony is working closely with dealerships to align financing options with consumer appetite and sales goals. 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 th...
May 05, 2025•21 min•Ep. 274
Capital One is looking at ways to expand the use of AI-based agents on the heels of launching its agentic AI-based tool, Chat Concierge, earlier this year. 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 driv...
Apr 28, 2025•16 min•Ep. 273
First-quarter bank earnings highlighted mixed results as some banks saw an uptick in originations and leasing volume, while credit performance largely improved. 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....
Apr 21, 2025•5 min•Ep. 272
Credit access improved and vehicle prices were steady in March before tariffs took effect, while the first wave of first-quarter earnings point to growth for auto lenders. 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 ye...
Apr 14, 2025•6 min•Ep. 271
The auto industry is rapidly responding to tariffs that took effect last week, while subprime lenders continue to navigate risk and credit performance. 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 unveile...
Apr 07, 2025•4 min•Ep. 270
The auto industry is bracing for impact as tariffs on vehicles take effect April 3. 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 jumpe...
Mar 31, 2025•4 min•Ep. 269
The fourth quarter highlighted still-elevated auto delinquencies, growing lease share and competitive market conditions. 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 aut...
Mar 24, 2025•15 min•Ep. 268
Diversification across public and private funding sources is key to driving origination growth for auto lenders as the cost of funds fluctuates and investors look to put an abundance of capital to work in auto finance. 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, ...
Mar 17, 2025•3 min•Ep. 267
Tariff uncertainty continues to disrupt the auto industry; companies increasingly rely on AI for innovation and efficiency. 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 Ups...
Mar 10, 2025•8 min•Ep. 266
The first half of 2025 is expected to bring stabilizing delinquencies, increased demand for automotive refinance and mixed vehicle price and sales dynamics. 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 ...
Mar 03, 2025•8 min•Ep. 265
Used EV values have fluctuated amid uncertainty over tax credits and potential tariffs. “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...
Feb 24, 2025•20 min•Ep. 264
The Department of Government Efficiency, run by Elon Musk, effectively shut down the Consumer Financial Protection Bureau over the weekend, adding to uncertainty regarding operations after CFPB Director Rohit Chopra was fired last week. 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...
Feb 10, 2025•8 min•Ep. 263
Auto lenders are keeping an eye on loan production, credit performance and vehicle prices as tariffs loom. 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 Mexi...
Feb 03, 2025•7 min•Ep. 262
Captive lenders will remain aggressive in the auto space this year after tapping back into auto loans at the close of 2024, when delinquencies cooled. “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 th...
Jan 27, 2025•16 min•Ep. 261
Wildfires impacting large areas of California are contributing to higher auto insurance costs in the state and more deferral offerings from lenders for affected borrowers. 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) de...
Jan 13, 2025•10 min•Ep. 260
The past year has largely been defined by persistent affordability concerns even as vehicle prices stabilize and interest rates come down, as costs for everyday expenses make it challenging for consumers to keep current on debt. 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, improvin...
Jan 06, 2025•9 min•Ep. 259
Bank pullback in asset-backed lending has spurred growth for lenders that provide floorplan financing for independent dealers, while banks are expected to further tighten credit access in 2025 as demand weakens. 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 cred...
Dec 16, 2024•8 min•Ep. 258
