The Auto Finance Roadmap

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 purc...

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 ...

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, 2...

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...

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, reachi...

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 nea...

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 us...

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. TransUni...

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-t...

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 fl...

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 type...

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, ...

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 ori...

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...

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...

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 y...

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.  

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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 t...