The compliance industry continues to face headwinds as funding for the Consumer Financial Protection Bureau is in jeopardy after the Department of Justice recently ruled that the bureau cannot request money from the Federal Reserve.
The DOJ’s Nov. 7 ruling states that the “combine earnings of the Federal Reserve system” — laid out by the Dodd-Frank Act as the source of most of the CFPB’s funding — refers to Fed profits. The Fed was last profitable in 2022.
It is unclear if the CFPB will be operational in January 2026. The bureau can request funding from Congress, but approval is uncertain.
Government shutdown ends
The ruling on CFPB funding came just days before the U.S. House voted Nov. 12 to end the longest government shutdown in United States history.
The end of shutdown, which stretched from Oct. 1 to Nov. 12, could prove fruitful for the auto industry because consumers may have delayed auto purchases during this time, experts say. The theory, in part, is evidenced by a 2.7% drop in consumer confidence in October and slowing new-car sales.
Despite industry pressures, auto industry participants continue to see resilience.
Shifts in RV industry
The RV industry also is optimistic for 2026, even as it continues to grapple with ongoing challenges such as falling registrations.
Industry leaders gathered in Las Vegas this month for RV Dealers Convention and Expo 2025 to discuss the effects of macroeconomic conditions, consumer sales trends and the ROI for AI integration.
Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week’s auto finance and powersports news.
Auto retailers and fintechs mostly reported growth in the third quarter amid mixed October retail sales, flat vehicle values and some layoffs.
CarMax named David McCreight as its interim president and CEO, replacing Bill Nash, effective Dec. 1. Nash is not retiring, and the shakeup comes as the Richmond, Va.-based retailer’s comparable store used-vehicle retail sales are expected to drop between 8% and 12% year over year in the third quarter of its fiscal 2026, according to CarMax’s Nov. 6 release.
Meanwhile, EV makers Lucid Motors and Rivian saw deliveries jump 46.6% YoY and 31.8% YoY, respectively, in the third quarter ended Sept. 30.
AI-powered lending platform Upstart also saw growth in Q3, with auto loan originations up 357.1% YoY on issuance of 6,705 loans, according to a Nov. 4 Upstart presentation.
However, fintech Open Lending saw certified loan volume drop 13% YoY to 23,880, according to its Nov. 6 release. The fall came as Open Lending prepares to roll out a new credit decisioning platform.
Vroom subsidiary United Auto Credit Corp. also originated $107 million in the third quarter ended Sept. 30, up 7% year over year but down 6.1% quarter over quarter.
The mostly positive Q3 reports came as auto lenders tightened their credit standards. The average new-vehicle auto loan rate increased 19 basis points month over month in October to 9.6%, according to Cox Automotive. This rise is despite a 25-basis-point cut by the Federal Reserve on Oct. 29.
Meanwhile, lender Prestige Financial Services reportedly laid off employees in early November, according to posts from former employees. The reported layoffs come as the subprime market faces challenges in affordability and credit performance.
With these headwinds and elimination of the federal EV tax credit, automakers reported mixed sales in October. Toyota Motor North America saw sales surge 11.8% YoY to 207,910 vehicles, while Mazda’s sales plummeted 32.6% YoY to 25,161 vehicles, according to the companies.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses trends across third-quarter earnings, vehicle values and sales for the week ended Nov. 7.
Auto lenders are homing in on key areas of underwriting to manage risk and grow in 2026 as the subprime market continues to face challenges with credit performance and affordability.
Improved loan decisioning, declining interest rates, the use of data and analytics, and responsible growth are top of mind for auto lenders into next year, leaders said at the recent Auto Finance Summit 2025.
The Federal Reserve cut its benchmark interest rate by another 25 basis points (bps) on Oct. 29, prompting lenders to prepare for an uptick in refinance opportunities. However, affordability remains a leading concern, especially for subprime consumers.
In fact, Irvine, Calif.-based subprime auto lender Bayside Credit stopped originating auto loans against the backdrop of challenging macroeconomic conditions.
Subprime credit performance is also a concern in the auto securitization market, with and lenders that target consumers who may not be legal U.S. citizens experiencing higher-than-expected losses.
In other news, subprime lender Credit Acceptance Corp.’s originations fell 16.5% year over year in the third quarter amid competition and worsening loan performance.
Carvana, on the other hand, posted a 58.8% YoY jump in originations in Q3 and increased its forward-flow agreement with Ally Financial.
In this episode of “Weekly Wrap,” Auto Finance News Associate Editor Aidan Bush discusses trends across underwriting, subprime lending, capital markets and third-quarter earnings for the week ended Oct. 31.
Investors are seeking more transparency following Tricolor’s Chapter 7 bankruptcy filing last month, which has also prompted several auto lenders to review their books and assure investors of loan quality and operational health.
The auto finance industry and asset-backed securitization issuers could benefit from more transparency and consistency in disclosure policies, panelists said during a session on Oct. 21 at FT Live’s ABS East in Miami.
Auto lenders are reviewing their portfolios following allegations levied against Tricolor for double-pledging of assets on its warehouse lines of credit. Ford Credit reviewed its millions of contracts to confirm they “are either not securitized or we are in one deal and one deal only,” Ryan Hershberger, director of global funding and capital markets for Ford Motor, said during a panel at the show.
Investors are looking for more information and understanding on how double-pledging could occur, Lendbuzz Chief Executive Amitay Kalmar said at the event. In fact, Credit Acceptance Corp. addressed investor questions in multiple 8-K filings with the SEC as the industry becomes more cautious.
Meanwhile, third-quarter earnings point to growth at banks, captives and retailers. AutoNation Finance’s originations jumped 85.7% year over year; Capital One’s auto originations rose 17.2% YoY; Lithia Motors’ finance arm Driveway Finance’s originations rose 41.3% YoY; GM Financial’s originations declined 3.5% YoY; and Ford Credit’s portfolio and earnings before taxes increased YoY.
Auto Finance Summit 2025 also highlighted how auto lenders are using AI and machine learning to track borrower habits, and where consumer sentiment is trending.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, senior associate editor Truth Headlam and associate editor Aidan Bush discuss key takeaways from recent industry events, including ABS East and Auto Finance Summit 2025, as well as Q3 earnings for the week ended Oct. 24.
Auto Finance Summit 2025 shed light on how auto lenders are responding to challenges facing the wider market, including credit performance, affordability and evolving technologies.
Following subprime buy here, pay here lender Tricolor’s Sept. 10 Chapter 7 bankruptcy filing, auto asset-backed securities spreads widened, Kayvan Darouian, director of consumer asset-backed securities research at Deutsche Bank, said during an Oct. 15 presentation at the event. Still, Tricolor’s challenges do not represent issues facing the wider market, he said.
Further, subprime share has “come back in the last 12 months,” and lenders should be competitive in the near prime sector, Scot Hensel, finance director at Kunes Auto Group, said during a fireside chat at the summit.
Auto lenders are also leaning into AI and technology to drive efficiencies. GM Financial, for example, is piloting a digital app for dealers to manage their businesses and track information such as deal volume and floorplan balance, President and Chief Executive Susan Sheffield said during a fireside chat.
Meanwhile, third-quarter bank earnings so far point to growth in auto originations and improved credit performance. Ally Financial’s auto originations rose 24.5% year over year to $11.7 billion, while Wells Fargo Auto’s originations soared 114.6% YoY to $8.8 billion. Bank of America’s net charge-offs across its direct and indirect consumer portfolio also decreased 1 basis point YoY to 0.2%.
Listen as Auto Finance News Editor Amanda Harris and Associate Editor Aidan Bush dive into the top stories from Auto Finance Summit 2025 and highlight key takeaways from third-quarter bank earnings.
The powersports industry continues to grapple with volatile market conditions including rising prices, falling sales, waning consumer demand and a rapidly changing compliance landscape, but there are some lenders and dealers who have proven themselves resilient.
Auto Finance News today announced 11 powersports executives to watch heading into 2026 who have thus far proven their ability to support lenders, dealers and consumers in a political and economic climate that is also rapidly changing.
Dealers and lenders are leaning into the used market to drive sales and overall growth in the fourth quarter and heading into next year. In fact, manufacturers including Harley-Davidson are pushing certified pre-owned inventory as consumers search for more affordable purchase options.
Relationships between dealers and lenders in the auto market are also strengthening as evidenced by Arivo Acceptance becoming the captive finance arm of Ken Garff Automotive Group, news that Auto Finance News broke Oct. 10.
In other news, Tricolor Auto is reported to have stopped paying rent to some of its landlords ahead of filing for Chapter 7 bankruptcy.
Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week's auto finance news and unveil some of what attendees can expect at this week’s Auto Finance Summit 2025.
Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here.
This episode is sponsored by The Work Number by Equifax.
A federal investigation into subprime auto lender Tricolor Holdings was confirmed as court proceedings began last week.
In a court hearing on Oct. 3, Tricolor’s lawyers confirmed that federal law enforcement and regulatory agencies are investigating the buy here, pay here dealer and subprime lender for alleged misconduct and alleged systemic fraud.
Since Texas-based Tricolor’s Chapter’s 7 bankruptcy filing on Sept. 10, the company’s bond prices have plummeted, signaling that investors believe there is an increased risk of losses, particularly in riskier tranches.
Meanwhile, third-quarter sales among auto makers climbed as OEMs pushed incentives and consumers pulled ahead their EV sales prior to elimination of the $7,500 federal tax credit on Sept. 30.
In regulatory news, powersports lenders and dealers are in an interesting position amid the shifting compliance landscape.
The powersports industry has long been overlooked by regulators, with a fraction of complaints the Consumer Financial Protection Bureau received since 2011 directed at the powersports industry.
But with the pullback at the CFPB and state regulators and other agencies like the FTC ramping up enforcement, it’s imperative that lenders and dealers don’t do anything to garner enforcement actions.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss Tricolor proceedings, OEM third-quarter sales and powersports compliance for the week ended Oct. 3.
Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here.
This episode is sponsored by The Work Number by Equifax.
Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.
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 promotional spend.
Dealers are also turning to used units to meet consumers’ demand for more affordable products and as many expect sales to pick up in the coming months. On the new-vehicle side, tariffs continue to be a leading concern for powersports manufacturers, especially as steel and aluminum tariffs raise costs on parts and accessories.
While powersports dealer are not faring equally amid challenges plaguing the industry, prevalent themes throughout Powersports Finance Summit 2025 included optimizing for a rise in AI usage by consumers, preparing for a potential uptick in regulatory scrutiny and continued mixed sales performance by market segment.
Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush recap the 2025 event and highlight news to come this week.
This episode is sponsored by The Work Number by Equifax.
Stay up to date with all the news coming out of Powersports Finance Summit 2025 here.
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 particular case that have claims here, and some of them have claims against the same collateral,” Brian Bastin, program director for the business and automotive programs at Fort Lauderdale, Fla.-based Keiser University, tells Auto Finance News in this week’s podcast.
JPMorgan Chase, Origin Bank and Fifth Third Bank all had existing warehouse lines with Tricolor and are just some of those in the long list of Tricolor’s creditors.
“In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation,” Bastin says, noting that there is a pecking order to claims and payments as a result of liquidating the lender’s assets for its Chapter 7 bankruptcy.
“In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation.” -- Brian Bastin, program director for the business and automotive programs, Keiser University,
Consumers should be proactive about making sure that any former loans, title liens, service contracts and warranties are properly dealt with to avoid any road bumps down the road.
Join Senior Associate Editor Truth Headlam and Keiser University’s Brian Bastin as they break down the potential implications of Tricolor’s bankruptcy for lenders, consumers and the subprime market as a whole in this week’s Weekly Wrap.
This episode is sponsored by The Work Number by Equifax.
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 placed their ratings on Tricolor securitization transactions under watch for potential downgrades. Backup servicer Vervent Inc. is also prepping to takeover servicing of Tricolor’s portfolio.
Tricolor’s closure could spark a ripple effect for small subprime lenders, especially after subprime lender Automotive Credit Corp. also indefinitely paused all originations Aug. 7.
For floorplan lenders, bankruptcies can lead to hundreds of millions of dollars in losses and trigger efforts to recoup losses tied to remaining assets.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the ramifications of Tricolor Auto’s bankruptcy.
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 a drop in sales and amid a decline in approvals at the dealership group, which has five locations in Indiana, Executive Board Member Tiger Okeley told AFN.
“We've seen about a 20% decrease in sales, and that's by design,” he said, without providing specific sales numbers. Oak Motors focuses on identifying consumers who can commit to long-term deal structures that are beneficial to the consumers and the dealership, he said.
While the BHPH dealership sells as many vehicles as it wants to sell, success depends on finding customers capable of keeping up with weekly payments, Okeley said.
“If they stop paying us, it didn't matter if we sold them a car,” he said. The bottom line is “we didn't get paid.”
BHPH is attractive to customers with risky credit profiles or those who don’t have access to traditional financing, Okeley said. Some BHPH dealerships offer customers a chance to rebuild their credit to qualify for traditional financing down the road.
In fact, an inaugural survey of 1,015 consumers across the country published by Oak Motors on Aug. 15 revealed that 32% of consumers avoided applying for an auto loan due to concerns about their credit score this year.
Hear more about Oak Motor’s credit survey results, market trends and the state of the buy here, pay here market in this week’s podcast.
This episode is sponsored by The Work Number by Equifax.
Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here.
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 Financial Officer and Vice President of Strategy Eliane Okamura in the second half of the year, alongside portfolio health and technology advancement, she told Auto Finance News.
Meanwhile, credit unions have gained market share as they lean back into auto as consumer demand for used vehicles increases amid affordability challenges.
In powersports, motorcycle dealers saw mixed sales in July as lenders tightened standards, with dealers also scaling back supply. Prices remain high across the industry, with the average selling price of boats up 10% in July.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across fraud, affordability, sales and powersports for the week ended Aug. 22.
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 followed the CFPB’s July 14 motion filed with the Office of Management and Budget which would rule on the request.
The change, if approved, would reduce the number of financiers considered larger participants to five from 63, according to the notice. Traditional lenders and nonbank entities would still be subject to state laws even if they are no longer under CFPB jurisdiction.
While this unfolds, lenders are also working to seize opportunities in the market.
Auto lenders are continuing to lean into refinance programs on the heels of stabilizing interest rates and consumers’ search for affordability and better loan terms.
Subprime lender Arivo Acceptance Chief Executive Landon Starr told Auto Finance News that the company is ramping up its refinance program with a goal of $60 million in average monthly origination volume.
In fact, TransUnion estimates 18 million consumers, or 23% of borrowers with open auto loans, have interest rates that exceed the average APR in the industry.
Also, average vehicle transaction prices jumped 5.2% year over year in the second quarter to $31,216, according to an Edmunds report published Aug. 12.
In this episode of the “Weekly Wrap,” Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 15.
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:
With longer ownership of vehicles, more repairs are inevitable, he said. While customers are willing to get emergency repairs, many aren’t willing to pay for preventative maintenance.
“Consumers are likely to opt in to the kinds of services that get them back on the road faster and safer,” he said. “They may not immediately agree to do the work that might be proactive.”
Synchrony’s Car Care Credit Card breaks those larger payments into smaller monthly installments, Mait said.
Tariffs to worsen expenses
In a June survey of 1,000 Synchrony’s card holders, just half said they could afford an unexpected expense of $1,000, Mait said.
“The primary word that keeps getting used is ‘anxiety,’” he said. “Consumers are anxious about not necessarily knowing how this is all going to play out.”
The rise in consumer uncertainty comes amid broader inflation and tariff-induced concerns, Mait said. Because parts for repairs are sourced globally, tariffs could “have a major influence on the cost.”
“[Consumers] need to maintain a proactive mindset toward vehicle health,” he said. “If they’re not under warranty anymore, they need to be mindful of the expenses that are coming their way.”
Tune in to “Weekly Wrap” to hear Mait’s conversation with AFN Associate Editor Aidan Bush.
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 reports.
Captive Ford Credit saw an 88.1% YoY increase in earnings before taxes to $645 million in Q2, though its finance penetration rate of U.S. Ford Motor sales fell to 33% in Q2, compared with 51% a year earlier, according to its earnings report.
Retailers Asbury Automotive and Penske Automotive faced declining finance and insurance profits. Asbury Automotive’s F&I revenue fell 5.4% YoY to $182 million, while Penske Automotive’s F&I revenue dropped 3.9% YoY to $200.5 million, according to the retailers’ earnings reports.
Retailers also saw mixed new- and used-vehicle inventory in Q2. Asbury Automotive reported new-vehicle inventory down 13 days YoY at 49 days’ supply, while used inventory fell one day YoY at 37 days’ supply. Penske’s new-vehicle inventory hit 57 days’ supply, up YoY from 49, while used vehicles fell YoY to 44 days from 47.
Also last week, asset management firms KKR & Co. and Pacific Management Co. agreed to purchase a stake in Harley-Davidson Financial Services and buy more than $5 billion in existing loan receivables, according to a July 30 Harley-Davidson announcement. The announcement came days before Harley-Davidson appointed Artie Starrs, chief executive of Topgolf, to be its new chief executive starting Oct. 1.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 1.
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 purchase vehicles ahead of expected tariff-induced price hikes.
The index ended the month at 97.3.
However, June’s expansion follows mixed reports of credit access as many consumers entered the market with FICO scores up to 100 points lower following resumption of student loan delinquency reporting in the first half of the year.
These market trends prompted lenders to look for ways to grow without loosening credit standards, Sanjiv Das, president at Pagaya, told Auto Finance News. Pagaya purchases loans that meet its underwriting criteria from lenders and securitizes the loans to fund further originations.
“Our lenders are gradually starting to lend more,” he said. “They are spending a lot more of their efforts on dealers and building their networks, as opposed to expanding their credit box.”
Pagaya sees volume growth
Pagaya reported a 50% quarter-over-quarter increase in the second quarter in its auto annualized run rate, which surpassed $1.1 billion in Q1, according to a May 7 letter to shareholders. However, auto volume decreased 7% YoY.
“Last year was a relatively tough year for the entire auto industry,” Das said. “When you're in the public markets as a public company, you're always being pushed for growth, until one day that growth story cracks and falls on the other side.”
Slowed growth pushed Pagaya to focus on maintaining consistent yield for investors, he said. Simultaneously, its lenders reduced volume through the end of 2024, when consumers appeared to be in better shape.
Consumers seem to be in good shape “through the middle of 2025, and so we have significantly opened up our pipes into our lenders,” Das said, noting that Pagaya increased its volume with lenders because investor appetite has strengthened.
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 originations surging 86.5% YoY to $6.9 billion, according to the banks’ earnings reports.
Huntington Auto Finance’s originations rose 9.5% YoY to $2.3 billion. Ally Financial and Chase Auto also reported growth in lease volume during the quarter.
Meanwhile, credit performance improved across most banks in Q2, with auto delinquencies and net charge-offs down YoY. Bank of America’s auto net charge-offs declined 3 basis points YoY to 0.17%.
Regional bank performance was mixed, with U.S. Bank’s indirect loan and lease originations down 29.1% YoY to $1.4 billion and auto outstandings up at Fifth Third Bank and PNC Financial.
Also last week, auto lenders dived into trends across automation in underwriting in the Auto Finance News webinar “Digital Strategies for Exceptional Customer Experiences.”
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended July 18.
Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. To learn more about the 2025 event and register, visit www.AutoFinance.live/AFS.
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, 2032.
At the same time, lower prices and more models coming off-lease contributed to an uptick in used-EV sales in May, while new EV sales declined year over year.
Hybrid sales have also been on the rise, with gas-hybrid sales making up a record 12.6% of total vehicle sales in April.
In powersports, several Harley-Davidson dealerships have closed their doors amid a dip in motorcycle sales and in tandem with leadership changes at the company.
Weaker motorcycle sales mirror trends in the wider powersports market headed into the summer months, with powerboat retail sales down 9% YoY through April and North American RV registrations down 5.6% YoY in May.
On the tech front, Santander Consumer USA has launched a new pre-qualification dealer lead generation tool, and CarMax is gearing up to launch updated versions of its chatbot tools for associates and customers.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the latest updates on electric vehicles, incentives, powersports and technology for the week ended July 11.
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 4 holiday brought a mix of 0% financing and cash back offers, with incentive spend varied by brand.
Meanwhile, credit unions are putting excess lending capacity to work, evidenced by an uptick in application volume at fintech Origence, which provides technology and financing capabilities for credit unions. While application volume rose year to date through June, the fintech’s ratio of funded loans to applications fell due to higher loan-to-value ratios in the market as consumers lean on longer-term loans to manage monthly payments.
Alloya Corporate Federal Credit Union issued its first asset-backed securitization deal on July 1, a $150 million transaction backed by prime auto loans issued by Blaze Credit Union, Consumers Credit Union and Interra Credit Union.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the latest updates on sales, incentives, funding and capital markets for the week ended July 4.
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, reaching a three-year low in May. Used EV inventory was 40 days’ supply in May, down 11% YoY, according to Cox Automotive.
Uncertainty surrounding the fate of the federal tax credit for new and used EVs is one driver behind consumer demand in recent months, combined with state-level incentives.
Meanwhile, tariffs and the resumption of student loan payments and credit bureau reporting could impact auto loan credit performance in the coming months.
In powersports, mixed sales and rising inventories have prompted a wave of promotions from manufacturers that range from increased cash rebates to lowered rates on certain models.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in electric vehicles, credit performance and powersports for the week ended June 27.