The Auto Finance Roadmap

Ben Sporn starts each workday by ensuring AI programs, scripts, commands and agents at VIP Automotive Group are running correctly.  That's because Sporn's job as chief marketing officer at his family's Westbury, N.Y.-based dealership group is to build and maintain AI agents and software as well as find opportunities to build new technology in-house.   "We started deploying AI about two years ago,"...

The number of Fifth Third Bank customers opting for 84-month loans grew 15% to 20% year over year as of Sept. 29, Head of Mortgage Lending and Indirect Dealer Services James Sias says on the latest “Auto Finance News Podcast.” “Customers have demonstrated they are willing to keep vehicles longer, particularly when it means that the new vehicle they’re going to buy is going to require a higher paym...

Auto lenders must strengthen fraud controls, improve operational processes and lean more into precise, data-based decision-making as they look toward 2027, Manish Chhabra , head of auto pricing and credit strategy at Chase Auto , says on the  Auto Finance News Podcast . "You cannot do one-size-fits-all underwriting," he says. "Getting granular is important. Leveraging new data, including alternati...

Communication is key to GM Financial's continued success under new leadership, according to retiring GM Financial President of North America Operations Kyle Birch.  "There'll always be challenges for lenders and dealers, even in the best of times," he told Auto Finance News.   "We talk a lot about sales, funding, credit performance, customer satisfaction, profitability — the list goes on. But if w...

The auto asset-backed securitization market remains resilient as a funding outlet for many issuers and originators.  “It's an important source of capital for us,” Michael Gustafson , chief financial officer at lender Arivo Acceptance , tells Auto Finance News . “The primary driver for us is getting critical mass and building up the portfolio to drive the right economics in securitization." West Va...

Ally Financial, Capital One and Huntington Bank posted mixed results in the second quarter for auto originations and credit performance.   Ally Financial’s auto originations rose 20.9% year over year in Q2 to $13.3 billion, while Capital One's auto originations increased 18.9% YoY to $12.9 billion. Huntington Bank's auto originations, however, decreased 39.1% YoY to $1.4 billion.   Delinquencies w...

National and regional bank second-quarter earnings point to mixed performance as larger banks lean into auto production while regional banks held steady or scaled back amid market volatility.   Wells Fargo Auto, for one, reported a 40.6% year-over-year increase in originations in Q2, while Chase Auto's originations rose 8.9% YoY. Bank of America's auto book shrank.  Regional banks saw improvement...

Subaru Motors Finance plans to expand its underwriting to attract more first-time buyers, Managing Director Michael Cottone tells Auto Finance News in the latest episode of “The Auto Finance Roadmap Podcast.” “We are extremely low when it comes to delinquencies; the FICO scores are very high, the income levels are high,” he says. “We’re looking to try and find more buyers for the Subaru brand. We’...

BMW Financial Services’ lease penetration has normalized following the elimination of the federal electric vehicle tax credit, says Ole Jensen, chief executive and president of the captive in North America.   “We [have] slightly higher penetration when it comes to [battery EVs] in terms of leasing, because a lot of people [are] maybe uncertain about if they like the car, if they like the technolog...

Car buyers are facing a tough market as rising insurance costs add to vehicle ownership expenses and lenders are mindful of high loan-to-value ratios.   The national six-month auto insurance premium rose 7.5% year over year to $1,163 in May, with the average up 20.6% YoY to $1,263 in the first quarter. Individual borrowers’ insurance premiums are difficult for auto lenders to track, creating a cha...

Auto retailers are gaining momentum on the heels of increased sales and finance volume even as the industry navigates continued affordability headwinds.   Carvana last week opened its first test-drive center in Dallas after acquiring seven Stellantis dealerships to expand into new-car sales.   The Tempe, Ariz.-based retailer sells new and used vehicles online and reported a 40% year-over-year incr...

Carvana has lowered its interest rates as its profitability, sales and finance volume improve.  The Tempe, Ariz.-based retailer in the past year has focused on expanding inventory to meet consumers’ needs as car prices rise, improving customer experience and using AI to streamline transactions, Matt Dundas, vice president of finance, tells Auto Finance News during a special episode of “The Roadmap...

AI-powered research tools are changing how consumers shop for powersports vehicles, prompting dealers to spend more time explaining financing options and correcting misconceptions about rates, promotions and pricing.  Consumers are increasingly arriving at dealerships with information gathered from online searches and AI platforms , creating both opportunities and challenges for finance managers,...

Used-car financing gained ground in the first quarter as affordability pressures continued to push consumers away from higher-priced new vehicles.  Used vehicles accounted for 58.6% of all auto financing in Q1, up from 58.2% a year earlier and marking the first Q1 increase since 2023, according to Experian .   The shift underscores a broader affordability challenge facing the auto industry as aver...

The higher cost of living is exacerbating affordability concerns and prompting auto lenders to take a close look at rising delinquencies, asset pricing and innovative programs to get consumers into vehicles.   The inaugural Auto Finance Capital Summit in Nashville, Tenn., highlighted lenders’ reliance on diversified funding sources across asset-backed securitization (ABS), warehouse lending and pr...

Powersports dealers are introducing financing discussions earlier in the buying process as affordability concerns and economic uncertainty shape consumer behavior during the industry’s peak selling season.  May is one of the most important sales periods for powersports dealers as warmer weather drives demand for motorcycles, ATVs and side-by-sides, Synchrony Outdoors Senior Vice President and Gene...

In the first quarter, the auto finance industry balanced strong auto loan originations with persistent affordability challenges, shifting EV demand and rising asset-backed securitization activity.  Auto lenders, including PenFed Credit Union , Driveway Finance and Carvana posted strong first-quarter gains, signaling continued demand for auto loans, according to their earnings releases last week. P...

Consumer budget concerns are driving year-over-year surges in auto refinance applications, Strati Papageorge , senior vice president of product at PNC Financial , tells Auto Finance News in the latest episode of “The Auto Finance Roadmap” podcast. “Affordability is No. 1, the biggest reason that consumers are coming to us,” to refinance, he said. “It helps with monthly payment.” PNC reported a 60%...

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 billi...

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 increa...

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 bor...

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...

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 a...

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...

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...