Pre-tariff car prices hold, Q1 earnings kick off
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 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.
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.