The Auto Finance Roadmap

Powersports dealers are working closely with manufacturers to balance supply with a decline in sales and worsened consumer confidence, themes that were prevalent during Powersports Finance Summit 2025, held Sept. 23-24 in Columbus, Ohio.
Lender Octane, for one, is working to provide the technology and finance programs needed to support dealerships as they face smaller margins compression and lower sales alongside higher...

As the Department of Justice investigates the alleged fraudulent claims against Tricolor Auto Acceptance, one expert warns that there may not be enough collateral to satisfy the subprime lender’s outstanding debt with all its financiers. 

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 part...

Tricolor Auto Acceptance’s chapter 7 bankruptcy filing on Sept. 10 has led to ratings downgrades for the financier and talks of potentially wider implications for the buy here, pay here and subprime markets.  

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 plac...

Buy here, pay here dealership Oak Motors is slowing approval of credit applications as long-term affordability concerns persists and despite increased volume.  

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 ...

As fraudulent activity picks up across the automotive industry, floorplan financiers are also seeing an uptick in dealers disappearing with vehicles or submitting false documents.  

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 Financ...

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 fo...

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:

• Ve...

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 report...

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...