Advertise on podcast: The Auto Finance Roadmap

Lenders’ auto originations were mixed in the first quarter, though most reported declining delinquencies. Originations reported by major banks include: Ally Financial, up 12.8% YoY to $11.5 billion;CarMax Auto Finance, down 1.5% YoY to $1.9 billion;Chase Auto, down 2.8% YoY to $10.4 billion;U.S. Bank indirect loan and lease production, mostly made up of auto loans, up 47.3% YoY to $1.7 billion; andWells Fargo Auto, up 110.9% YoY to $9.7 billion.Bank of America did not break out auto originations. However, its indirect and direct consumer outstandings, primarily consisting of auto and specialty lending loans, fell 0.4% YoY to $53.9 billion. Ally, Chase, U.S. Bank, Wells and PNC Financial reported YoY declines in auto loan delinquencies. Fifth Third Bank’s rate of 30- to 89-day delinquencies dropped 7 basis points YoY to 0.61%. Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Senior Associate Editor Aidan Bush dive into first-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates. Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Auto lenders and dealers are navigating mounting pressure in 2026 as inflation, geopolitical conflict and regulatory shifts weigh on profitability and consumer behavior.  Auto lenders are responding to tighter margins by strengthening dealer relationships and expanding into full-spectrum financial services. Technology also continues to improve efficiency and credit decisioning, resulting in increased applications and more ways for dealers and lenders to collaborate to improve profitability amid affordability concerns.  U.S. inflation surged in March, with the consumer price index rising 0.9%, the largest monthly increase since 2022, driven by higher gasoline prices amid the Iran war. The added challenges come as subprime bankruptcies and rising delinquencies begin to plague buy here, pay here dealers.  Despite affordability pressures, vehicle demand remains resilient but is shifting, with higher gas prices boosting EV interest and driving a 34% year-over-year increase in public fast-charging stations. As a result, several OEMs saw growth in EV sales during March, although first-quarter numbers remained mostly low.  Compliance concerns  Fraud is also rising globally, with losses from auto lending first-party fraud hitting $7.2 billion in 2025, part of an estimated $10.4 billion in first-party fraud losses.   Additionally, FirstRand plans to exit the U.K. motor finance market after setting aside £750 million ($994 million) for mis-sold loan claims. The move follows findings that 14.2 million of 32.5 million agreements were unfair, potentially costing the industry about $12.3 billion in repayments across 12.1 million loans. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Senior Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended April 10.  Subscribe to “The Roadmap Podcast” on iTunes or Spotifyor download the episode.  Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with the Auto Finance Summit East and the Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Auto lenders are working to balance growth against rising credit and affordability pressures as the market adjusts to shifting consumer behavior in 2026.  Luxury vehicle financier Rizz Lending this month secured a $300 million warehouse facility to scale originations to about $200 million this year. Meanwhile, fintech lender Lendbuzz is targeting 20% growth in originations by adding near-prime borrowers and using cash-flow-based underwriting.   Meanwhile, other players, including Credit Acceptance Corp., remain focused on underserved consumers, a segment of more than 90 million Americans.   Consumers are also adjusting to affordability constraints by changing their approach to car buying. Down payments declined in the first quarter while loan balances rose, and longer-term financing – including 84-month loans – reached record levels. Meanwhile, fewer consumers are applying for auto loans even as rejection rates decline, signaling softer demand.  At the same time, credit conditions continue to tighten. Canada’s goeasy, a subprime lender, reduced its auto exposure and tightened standards after charge-offs surged.   Lenders also pointed to weak dealer data and rising subprime delinquencies as ongoing risks. Concerns arose around data quality because AI-driven “credit washing” distorts borrower profiles.  Meanwhile, auto sales slowed in the first quarter, partly due to comparisons to the unusual tariff-driven surge in 2025. Higher-income buyers continue to support demand, while consumers shift to used vehicles or exit the market. Funding markets remain stable, with only modest widening in auto ABS spreads and steady investor demand, though banks are becoming more cautious as private credit exposure grows. Still, leasing may provide an offset, with Credit Union Leasing of America projecting growth as lenders seek alternatives to long-term loans.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended April 3.  Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with the Auto Finance Summit East and the Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Continued concerns around the Iran war and an increase in fraud schemes are placing more stress on auto lenders, dealers and consumers while driving shifts in risk management and strategy.  The war has pushed oil prices above $100 per barrel, fueling inflation and widening auto asset-backed securities (ABS) spreads. Prime spreads have widened by up to 17 basis points, increasing funding costs and tightening credit conditions. Higher fuel costs are also squeezing consumers, especially subprime borrowers, reducing disposable income and raising delinquency risks.   Those increased risks for subprime borrowers contributed to a 130% year-over-year jump in refinance activity in February as borrowers seek lower payments amid the market strain. Lenders also continue to tighten underwriting amid rising defaults, with early payment defaults reaching decade highs.  To compound the pressure on the auto sector, fraud risks continue to rise, with AI-driven “dealership cloning” scams, in which fake websites impersonate dealers, leading to millions in losses, damaging consumer trust and dealer reputations. Meanwhile, TD Bank is educating its customers and employees how to combat rising fraud on the lending side.  In response to the macroeconomic uncertainty and increased fraud, lenders and dealers continue to adjust operations as higher gas prices shift demand toward more fuel-efficient vehicles. Meanwhile, firms are adopting AI tools to improve operations but are emphasizing responsible use, including regulatory alignment and bias mitigation.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 27.   

AI adoption is changing how auto finance companies approach efficiency gains and how the industry scales, Sanjiv Yajnik, president of financial services at Capital One, tells Auto Finance News in the latest episode of “The Auto Finance Roadmap” podcast.   “The rate at which we are innovating right now, given AI, is unbelievable,” he says. Technology and AI-based tools are making processes faster and less expensive, Yajnik says. “People do research in a different way,” he says. “They can find things in a different way. It's much faster.”  On the other hand, technology is contributing to shifts in the industry’s structure, Yajnik says. “Industry structures are based on two things. One is scale, because scale determines how quickly and how consolidated an industry grows, and the other is [that] the demarcations between two industries dissolve,” he says.   While historically, “sometimes, there is one industry that does only finance, and another does only search. When technology comes to bear, there's a reason they are separate, because you need to pour a lot of money into it [and] you need certain expertise,” he says. “But when that expertise changes, the industries collapse into something completely new, and this is why incumbents often get left behind.”  Adapting to changes in technology industrywide requires building from the ground up, Yajnik says. “When you've got major technological change, it's hard to be a generalist and say, ‘I'll just get these engineers, and I'll make them do a few things,’” he says. “You have to get fully into it 100% and start playing with all the things yourself.”  Yajnik holds 27 patents, with more pending. Capital One’s auto originations increased 8.5% year over year in the fourth quarter of 2025 to $10.2 billion, with auto outstandings up 8.8% YoY to $83.6 billion.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Capital One’s Yajnik discuss AI innovation in auto finance, including responsible use of AI and technological changes still to come in the industry. 

The auto finance industry continues to navigate heightened economic uncertainty as the Iran war drives oil prices higher, adding pressure to consumers already facing elevated vehicle prices and borrowing costs.   Crude oil prices surged above $100 per barrel to end last week amid fears of supply disruptions around the Strait of Hormuz, a critical route for roughly one-fifth of global oil shipments, according to market researcher Energy Aspects’ data. The spike, which continued into today, pushed U.S. gasoline prices higher and increased volatility across financial markets.  Higher fuel prices are adding to affordability challenges that have defined the auto market for much of the past year. The average new-vehicle transaction was $49,353 in February, while the average monthly payment for a new vehicle climbed to around $767, according to Kelley Blue Book data.  Despite those pressures, credit activity remains steady. Subprime borrowers accounted for 15.3% of all vehicle loans in the fourth quarter of 2025, up from 14.5% a year earlier, as lenders seek to balance growth with risk management.  At the same time, tax refunds are providing a temporary boost in demand, with the average refund expected to reach $3,742. Some lenders have reported 10% to 15% more loan applications than expected in the early weeks of tax filing.  Meanwhile, capital markets remained active even as political tensions due to the Iran war widened credit spreads. Issuers continued to tap the asset-backed securities market, including Carvana, which issued a $1.1 billion prime auto ABS transaction and several securitizations by lenders seeking diversified funding.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 13.  

Despite a rise in subprime financing share in the fourth quarter of 2025, affordability remains a key focus for auto lenders and dealers as lower-income consumers continue to be disproportionately affected by higher everyday costs.  Subprime share of total vehicle financing in Q4 2025 stood at 15.3%, up from 14.5% a year earlier, according to Experian data. Prime borrowers continued to lead market share for new-vehicle financing as subprime customers remain challenged by high vehicle costs, but Federal Reserve interest rate cuts and tax refunds will potentially bring some relief in 2026.  Affordability challenges contributed to a slowdown in retail vehicle sales across much of the country in the first part of the year, evidenced by trends in the March 3 edition of the Fed’s Beige Book. Dealers across many Fed regions reported flat to decreased new- and used-car sales as higher interest rates and rising gas prices further tightened consumers’ wallets.  The war in the Middle East has contributed to higher oil and gas prices since the U.S. and Israeli strikes on Iran on Feb. 28, which could raise funding costs and prompt a shift in investors’ strategies.   Meanwhile, powersports lender Octane has shored up additional funding as it aims to grow originations and its captive-as-a-service offering. New York-based Octane’s originations rose 29% year over year to $2.1 billion in 2025.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II and associate editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended March 6. 

Auto lenders are eyeing AI and other digital technologies amid continued industrywide concerns over affordability pressures. Chase Auto will deploy AI that can fully automate the contract booking and funding process in 2026. AI-powered Fintech Agora Data closed a deal on Feb. 26 with blockchain-based platform provider Figure Technologies to tokenize auto loans into real-world assets for investors. The deal will reportedly improve liquidity by increasing access to investors and providing less expensive financing compared to other forms of investment, according to S&P Global. Lenders are also embracing AI and digital tools to empower Gen Z employees, executives at American Honda Finance, Ford Credit, Huntington Bank and Santander Consumer USA said during a panel session at the recent 2026 AFSA Vehicle Finance Conference. On the other hand, social media platforms have provided consumers with a hotbed of misinformation around debt validation practices, prompting concern from compliance experts and auto lenders. Meanwhile, auto finance leaders are focusing on consumers’ price concerns in 2026, as customers shift to buying used vehicles and lower financing costs. Additionally, some auto players cut their workforces last week. Automotive marketplace TrueCar cut 30% of its workforce on Feb. 24, and subprime auto lender Prestige Financial Services reportedly laid off between 14 to 16 employees on Feb. 27. Earnings Several auto and RV companies reported earnings, and key takeaways include: Online vehicle sales platform ACV Auctions in the fourth quarter reported $18 million in losses related to subprime auto lender Tricolor Holdings’ bankruptcy;RV dealer Camping World’s finance and insurance revenue fell 6.4% year over year to $111.4 million in Q4, but market share improved;EV maker Lucid Motors’ deliveries soared 72% YoY to 5,345 vehicles in Q4;Automaker Stellantis’ North American shipments rose 38.9% YoY in the second half of 2025 to 825,000 units in Q4; andTD Bank’s indirect auto outstandings totaled $31.7 billion, up 2.9% YoY in its fiscal Q1 2026.In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez, Senior Editor Truth Headlam and Associate Editor Aidan Bush discuss trends affecting the automotive industry and key updates for the week ended Feb. 27.

Drivers underestimate the cost of owning a vehicle by nearly $4,500 a year, underscoring mounting affordability pressures across the auto market.  There is a growing disconnect between consumer expectations and the rising expenses tied to maintenance, repairs, insurance and everyday vehicle use, Keith Mait, senior vice president and general manager of Synchrony Financial’s auto business, told Auto Finance News during a special episode of the “Weekly Wrap” podcast. That was among results of the lender’s survey, released Feb. 17, that polled 1,030 U.S. adults responsible for a vehicle’s upkeep via the Ask Suzy online platform.  “We see it every day in the average order values, or the transaction sizes, that find their way onto our cards. They haven’t gotten smaller,” he said. “Over the last four or five years, we’ve seen continuous incline in the average transaction values, both the first time somebody engages with us and on the repeat side.” Evaluating affordabilityAs consumers grapple with elevated new-vehicle prices, many buyers opt for used vehicles, extend lease terms or hold on to their cars longer, Mait said. While today’s vehicles last longer, they also feature more advanced technology, sensors and specialized components that can drive up repair costs, he said.  “When we try to evaluate consumer affordability vis-a-vis how they want their mobility to occur, it leads you to believe that they expect better quality,” Mait said. “They expect more for their dollars and they expect to have these vehicles for a long time, so making sure that they’re operating properly comes with [a] cost.” In this episode of “Weekly Wrap,” Auto Finance News Deputy Editor Johnnie Martinez II discusses trends affecting today’s car buyers with Mait.  

Auto dealers and lenders are looking to new technologies and ventures to grow operations as the retail auto market faces uncertainty, especially around used vehicles and EVs, in 2026.  Dealer captive financier AutoNation Finance’s originations rose 66% year over year in 2025. Meanwhile, the retailer’s full-year finance and insurance revenue increased 7.7% YoY to $1.5 billion, which represented 5.3% of total revenue and 29.6% of total gross profit, according to the company’s earnings release.  Additionally, AutoNation Finance is looking to improve call center operations with the deployment of Balto AI, while Capital One also aims to boost call centers with AI.   Bank of America is navigating affordability needs of consumer finance customers by expanding its 84-month-term eligibility for auto loans and advancing lending technology, especially in the RV space.  Other lenders are taking different paths to growth:  Huntington Bank expects its $7.4 billion merger with Cadence Bank to drive auto originations  growth; and  Fellow bank financier Santander acquired U.S.-based Webster Bank for $12.2 billion on Feb. 6. Dealers and lenders continue various strategies for growth in a complicated auto market, as J.D. Power predicts flat retail sales of 13.6 million units in 2026 and declining retailer profit, while projecting that used-vehicle prices could drop as much as 4% this year.  All of this comes as auto dealers and lenders descended on Las Vegas last week for several key events, including the American Financial Services Association’s Vehicle Finance Conference and Expo, the J.D. Power Auto Summit 2026 and the National Automobile Dealers Association Show. Auto Finance News was on site throughout the events, speaking to lenders, dealers and analysts. Keep an eye out for more news from those event.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez, Senior Editor Truth Headlam and Associate Editor Aidan Bush discuss trends affecting the automotive industry and key updates for the week ended Feb 6. 

Auto and powersports financiers mostly reported lower originations and sales for the last quarter as shifting spending patterns by cash-strapped consumers fuel uncertainty.  Lenders that reported fewer sales and loan originations, according to their respective earnings releases, include:  Credit Acceptance Corp.’s consumer loan assignment volume, down 9.1% year over year in its fourth quarter; GM Financial’s Q4 loan lease originations, down 18.7% YoY; OneWater Marine’s F&I revenue, declined 5.4% YoY in its fiscal first quarter; Tesla’s lease portfolio in Q4, dropped 12% YoY; and Volvo’s North American Q4 sales, down 19.6% YoY in Q4. However, some financiers reported positive results last quarter:  Group 1 Automotive’s F&I revenue climbed 1.9% YoY; Polaris’ Q4 sales climbed 9.5% YoY in Q4; and  MarineMax’s F&I revenue for its fiscal Q1 climbed 0.9% YoY and total revenue climbed 7.8% YoY.  Meanwhile, mergers and acquisitions in the RV and marine industries are on the rise after a yearslong slowdown following the pandemic.   Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live. 

Banks reported growth in auto originations in the fourth quarter as credit performance was mixed.   Auto originations at Ally Financial, Capital One, Chase Auto, U.S. Bank and Wells Fargo increased year over year, according to the banks’ earnings reports.  The increases were:   Ally’s originations rose 4.9% YoY to $10.8 billion;  Capital One’s originations increased 8.5% YoY to $10.2 billion;  Chase Auto’s originations ticked up 1.9% YoY to $10.8 billion;  U.S. Bank’s indirect loan and lease production, mostly comprised of auto loans, grew 2.7% YoY to $1.4 billion; and  Wells Fargo Auto’s originations soared 104% YoY to $10.2 billion  Huntington Bank’s auto originations, however, declined 4.6% YoY to $2.1 billion in Q4.   While Bank of America did not break out auto originations, auto outstandings came in at $55.3 billion, up 0.7% YoY, according to the bank’s earnings supplement.  Meanwhile, auto credit performance was mixed across major banks in Q4. Ally Financial, Capital One, Chase Auto and Wells Fargo reported YoY dips in auto loans delinquent by 30 days or more. Huntington's auto delinquencies rose, while Fifth Third Bank and Truist reported declines in 30- to 89-day auto delinquencies YoY.   PNC Financial’s rate of auto loans 30 to 59 days past due was 0.45%, down 9 basis points (bps) YoY, according to the bank’s earnings supplement.  Bank of America’s net charge-offs across its indirect and direct consumer book, which is largely made up of auto loans, rose 5 bps YoY to 0.22%.   Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush dive into fourth-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates.  

Gaps in data verification likely contributed to missed double-pledging of assets at Tricolor Auto, prompting changes at rating agencies, Larry Chiavaro, president at his consulting company LC Advisors Group, told Auto Finance News during a special recording of the Weekly Wrap podcast.   Chiavaro also served as executive vice president and co-founder of First Associates Loan Servicing from 2010 to 2021. That company was rebranded as Vervent in 2020. The backup servicer took over Tricolor’s portfolio following the company’s Sept. 10 bankruptcy filing.   Tricolor is under investigation for allegations of fraudulently double-pledging assets to warehouse lines, with former Tricolor Chief Executive Daniel Chu and other former Tricolor executives facing a federal indictment alleging they committed fraud at the company.   The Tricolor bankruptcy served as a “wake-up call for the industry” and has spurred changes, Chiavaro tells AFN. In this special episode of the Weekly Wrap, Auto Finance News Founder and CEO JJ Hornblass joins Chiavaro to discuss the collapse of Tricolor Auto, backup servicing operations and risk management.  

Auto dealers are expecting a strong tax season to spur a sales jolt early this year, but lenders and dealers are split on their full-year outlook amid rising vehicle prices and macroeconomic challenges facing consumers.   Other factors that market participants are monitoring include how fluctuating interest rates and unemployment will affect consumer affordability and car sales.  In fact, December 2025 sales were projected to fall 3.5% year over year to 1.4 million, according to Cox Automotive. Those figures will be released later this month.  However, 2025 new-vehicle sales reached the best level in six years, according to a Cox Auto Dec. 17 report. Full-year sales were projected to increase 1.8% in 2025 compared with 2024, according to Kelley Blue Book estimates.   At the same time, credit access improved in 2025 as fewer banks reported tightening their lending standards. The auto loan rejection rate, however, climbed 1 percentage point YoY in October 2025 to 15.2%.  Still, retailers such as Tempe, Ariz.-based DriveTime are eyeing growth in 2026 as they navigate the changing auto landscape. Chief Executive Mary Leigh Phillips told Auto Finance News that DriveTime is eyeing double-digit growth across its subsidiaries.  Tricolor effects  Among the changes the auto industry will navigate in 2026 are the effects of Tricolor Auto’s collapse, which is still playing out in court. At today’s court hearing, backup servicer Vervent’s responsibilities were outlined and permission was granted for Vervent to use Tricolor funds to pay collateral insurance protection and Texas seller-finance sales taxes.    Read AFN’s top 5 Tricolor stories in 2025.   Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack recent auto finance news and provide a look at the year ahead.   Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.   

An uptick in repossessions, continued affordability challenges and weakened credit performance are top of mind for lenders headed into 2026.   The shutdown of several lenders this year combined with inflationary pressures is likely to contribute to more repossessions at the end of 2025 and in early 2026. By Dec. 31, repossession assignments nationally are projected to surpass 10.5 million units for the year, according to American Recovery Association data.   At the same time, credit performance continued to worsen across securitized nonprime auto loans in November while prime loans had some deterioration. This bifurcation in credit tier performance is expected to continue next year.   Car sales have also been challenged as consumers face high sticker prices and shift to used vehicles, creating more competition in the market. CarMax’s used-vehicle sales fell 8% year over year in its fiscal third quarter to 169,557 units, while CarMax Auto Finance’s originations declined 9.3% YoY to $1.8 billion.   Meanwhile, Auto Finance News is pleased to name Sanjiv Yajnik, president of financial services at Capital One, the 2025 Auto Finance Executive of the Year.   In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across sales, affordability and credit performance for the week ended Dec. 19.