First-quarter earnings kicked off last week with banks reporting a decline in auto originations. Chase Auto and Wells Fargo Auto’s origination volume decreased year over year in Q1, while outstandings were mixed. Meanwhile, auto credit availability improved across all lender types in March.

Used-vehicle values declined again in March while car sales improved as the industry shifts toward a buyers’ market. 

The return of higher supply levels is contributing to an uptick in incentives and increased new-vehicle sales projections. Meanwhile, the powersports market is feeling the ramifications of higher interest rates. 

Auto lenders have been active in the past week in funding initiatives, while competition has ramped up across the market.

Powersports lenders project mixed origination volume in 2024 as credit unions and regional banks pull back in the space and consumer application quality declines. In this episode of the “Weekly Wrap,” Auto Finance News Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top trends during the week ended March 15.  

Wholesale used-vehicle values ticked down in February while electric vehicle residual values are causing concern for asset-backed securities investors. In this episode of the “Weekly Wrap,” Auto Finance News Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top trends during the week ended March 8.  

The auto finance industry continues to face a tightened credit environment, worsening credit performance and recoveries, and shrinking subprime market share as affordability concerns persist.

Aftermarket product sales have become more crucial for dealerships as vehicle profits decline, prompting the industry to increasingly turn to digital finance and insurance offerings.   The ancillary product market is also a hot topic for regulators as the Consumer Financial Protection Bureau and the FTC look closely at how lenders manage the addition of aftermarket products within retail installment contracts and how financiers issue refunds when add-on products are canceled.  

Auto lenders expect 2024 to be a year of growth driven by technology updates and loosening credit standards. Powersports sales and financing performance are mixed. 

Earnings season continued last week with GM Financial and Credit Acceptance Corp. reporting a rise in originations and worsened consumer credit performance.

Rising costs and limited supply have created challenges for used-car retailers, evidenced by Vroom’s planned shutdown of its used-car sales and e-commerce business and the closure of several Sonic Automotive-owned dealerships last week.

Elevated interest rates contributed to a competitive landscape that prompted some banks to slow auto lending activity in the fourth quarter while others saw growth in origination volume.  

Fourth-quarter earnings season kicked off with several banks reporting mixed results in auto originations as some tightened credit and others picked up auto lending activity.

Stricter federal tax credit requirements for electric vehicles have prompted price cuts, incentives, and dealer operation changes.  Lower interest rates and low unemployment also drive economists’ prediction of a soft landing in 2024. 

Mark Chandler, vice president for business development at Credit Union Leasing of America, lives and breathes the auto industry and leads his team with an infectious positive energy to create a productive work environment. 

Affordability and profitability were top of mind for auto lenders in 2023, and 2024 is set to be a year of cautious growth as rates come down. 

Elevated interest rates and inflationary pressures have prompted auto lenders to tighten credit, leading credit unions to step back and create opportunities for other financiers.  

Incentives and lower monthly payments are helping drive leasing as vehicle sales improved in November.   More than 27% of prime and superprime consumers chose to lease their vehicles in Q3, up from about 21% a year earlier, driven by lower payments compared to financed purchases, according to Experian.  Deals are also helping prompt leasing, with several OEMs offering low-rate and cash incentives on leases. 

When Anthony Capizzano, senior vice president, head of consumer lending at Axos Bank, returned from the U.S. Marine Corps in 1997, he was interested in two jobs: selling cars and selling coffins. The auto industry drew him in, and he has yet to pull away. In this podcast episode, Capizzano speaks with AFN Senior Associate Editor Riley Wolfbauer about how he aligns his team, the lessons he has learned during his career and how he carries himself as a leader. 

Delinquencies and net losses in the prime and subprime auto asset-backed securities market continued to increase in September, while captive market share of total auto financing reached its highest level in the third quarter since Q1 2018. In this episode of the “Weekly Wrap,” Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top stories for the week ended Dec. 1, and what to expect in the week ahead. 

The Consumer Financial Protection Bureau continued to focus on the sale of ancillary products to consumers, fining Toyota Motor Credit Corp. $60 million for violations related to ancillary products and bad data reporting to credit agencies. In this episode of the “Weekly Wrap,” Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top stories for the week ended Nov. 24, and what to expect in the week ahead.  

Higher interest rates are just one challenge facing consumers and affecting their ability to make their car payments.   Auto lenders are tightening credit and the whole industry is keeping a close eye on delinquencies and rising defaults.  

Affordability, credit performance, cost of funds and regulatory compliance are top of mind for subprime auto lenders as inflationary pressures further squeeze consumers’ wallets.  

Auto lenders homed in on subprime financing, liquidity management, technology and vehicle pricing last week during Auto Finance Summit 2023.