Affordability key challenge moving into 2025

Bank pullback in asset-backed lending has spurred growth for lenders that provide floorplan financing for independent dealers, while banks are expected to further tigh...

Used-vehicle prices rise, EV financing share up

The Manheim Used-Vehicle Value Index ticked up 0.2% YoY and 1.3% month over month in November to 205.4.  High car prices have contributed to affordability pressures fo...

Incentives pick up, dealers eye LTV requirements

Affordability, credit performance, leasing and digital innovation have been top of mind for auto lenders in 2024.  Car shoppers saw some relief over the holiday weeken...

Weekly Wrap discussion on nonprime consumers, improvements on affordability 

Near prime and nonprime consumers are seeing some relief from affordability challenges in the automotive industry following rate cuts by the Federal Reserve but remain...

Podcast: Synthetic fraud rises in powersports, auto

Auto originations have picked up industrywide even as average payments remain elevated, while manufacturers are increasing incentives to move inventory.  Originations ...

Podcast: Discussion on automakers' October sales

Sales at most major automakers increased in October, driven in part by an increase in EV sales. Overall sales increased for American Honda, Ford Motor Co., Hyundai Mot...

Podcast: Discussion on Q3 earnings, auto lease ABS issuance

More auto lenders announced year-over-year origination growth last week in their third-quarter earnings reports. Carvana posted a 35.5% YoY increase in originations in...

Podcast: Q3 captive originations are mixed

Q3 bank earnings offer mixed results

Bank earnings last week highlighted mixed results as some institutions saw an uptick in auto originations while others’ portfolios shrank.  Bank of America’s auto orig...

Q3 earnings season kicks off, Octane enters marine market

Chase Auto and Wells Fargo kicked off the Q3 earnings season last week, with both lenders reporting flat or lower origination volume on a year-over-year basis. Wells F...

Auto credit performance worsens, prompts provision spike 

High rates and rising consumer debt levels still drive a worsening auto loan landscape.  Delinquencies and losses rose across prime and nonprime securitized auto loans...

Podcast: Unlocking EV potential through leases, used market

Leasing an EV or buying a used one offers a more affordable option in today's challenging market, but many consumers remain hesitant. Nearly 8.5% of new purchases were...

Used-car demand strong amid tight credit, rising DQs 

Demand for used vehicles is strong as supply remains limited and affordability is top of mind for consumers.  The used-car turnover rate rose 8.4% year over year in Au...

Automakers pull back on DEI amid social shifts  

Several companies in the automotive and powersports industries made changes to their diversity, equity and inclusion initiatives following social pressure to scale bac...

Regulators eye AI, aftermarket sales practices

Regulators are scrutinizing practices surrounding the use of artificial intelligence and machine learning as well as aftermarket product sales, prompting auto lenders ...

Lenders weighing benefits of force-placed insurance

Subprime lenders are weighing the risks and benefits of protecting assets through force-placed insurance as credit-challenged borrowers face continued affordability is...

Weekly Wrap discussion on originations, AI-driven lending  

In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss trends in financier earnings, AI-based lending upd...

Weekly Wrap discussion on Q2 earnings, e-contracting 

In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss trends in financier earnings, technology, EVs and ...

Weekly Wrap discussion on leasing, HOG earnings

Captives’ second-quarter earnings last week reflected portfolio growth despite affordability and incentive challenges. Leases are a key driver for dealers as consumers...

Weekly Wrap discussion on leasing, earnings, sales

Second-quarter bank earnings continue to point to mixed loan production volume and a rise in leasing spurred by EVs. U.S. Bank originated $1.9 billion in Q2, up 21.5% ...

Weekly Wrap discussion on Q2 earnings kickoff

Second-quarter bank earnings kicked off this week and showed a continued slowdown in auto originations compared with a year ago. Chase Auto’s originations declined 10%...

Weekly Wrap discussion on sales, incentives 

June marked mixed vehicle sales and an uptick in incentives ahead of the July Fourth holiday, while the industry continues to keep an eye on impacts from cyberattacks ...

Weekly Wrap discussion on rising debt, tech, compliance

Higher costs for everyday expenses such as gas, groceries and vehicle insurance have prompted many consumers to turn to credit cards, with rising expenses making it ha...

Discussion on retail POS lending as an opportunity for lenders

Point-of-sale financing as an alternative payment method is a growing opportunity for lenders, technology company Pagaya’s President Sanjiv Das says on this episode of...

Weekly Wrap discussion on CDK attacks, powersports

Car dealerships are leaning on manual processes following consecutive cyberattacks against software provider CDK Global last week. In powersports, RV and marine manufa...

Weekly Wrap discussion on loan production, inflationary pressures

The auto finance industry is showing slight improvements in affordability and loan production while worsening credit performance and inflationary pressures remain conc...

Weekly Wrap discussion on leasing, NAF Summit

Leasing is picking up in tandem with incentives while used-vehicle values decreased in May — positive signs toward improving affordability.  While some measures indica...

Weekly Wrap discussion on market share, powersports

Auto lenders were active in the capital markets last month as credit union issuance picked up, while market share among banks and credit unions shifted in the first qu...

Weekly Wrap discussion on AI adoption, affordability 

Optimizing efficiency, improving accuracy and customer experience, and automating credit decisions are core uses of artificial intelligence in the auto finance industr...

Weekly Wrap discussion on underwriting themes at AFS East 2024 

Several auto lenders had to adjust their underwriting strategies in 2023 to account for worsening credit performance across loans originated in 2021 and 2022, a theme ...