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.
Listen to this special episode of the “Weekly Wrap” podcast, as Black Book’s Lawrence and National Powersport Auction’s Amata join Auto Finance News Associate Editor Aidan Bush to discuss motorhome and towable trends for the week ended June 20.
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 nearly flat month over month at $48,799.
But as student loan payments resume and that debt is again reported to credit reporting agencies, some nonprime borrowers are turning to credit-builder loans and buy now, pay later programs to improve their credit history and finance downpayments for vehicle purchases.
Meanwhile, in one of the first actions since the Consumer Financial Protection Bureau undertook a more limited approach to supervision under the new administration, the California State Senate passed a bill that would allow dealers to increase document fees to a maximum of $500. The current processing charges, in effect since 2019, are $85 for new cars and $70 for used cars.
The change would align the state’s processing fees with that of other states but has received backlash from some consumer advocacy groups that claim the uptick is another “junk fee.”
In other news, Arra Finance acquired Crescent Bank’s $815 million auto portfolio and plans to grow originations by leveraging the bank’s technology stack and dealer base.
Other auto finance companies have also seen growth in the first part of the year, including Carvana and Global Lending Services.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and compliance along with company updates for the week ended June 13.
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 used-vehicle values may be normalizing after a pre-tariff purchase surge, according to Jeremy Robb, senior director of economic and industry insights at Cox Auto.
The rate of 30-day plus auto delinquencies fell 18 basis points YoY in the first quarter, according to an Experian report released June 5. Auto inventory also fell in the regions covered by the Federal Reserve banks of Philadelphia and Cleveland, prompting higher prices, according to the Fed’s June 4 edition of the Beige Book.
National repossession assignments reached 2.1 million year to date through April, though lenders are delaying filing repossession papers.
In the nonprime space, lenders are looking at using AI technologies and speeding funding time while preparing to slow their activity in the wake of tariffs, according to panelists at the Non-Prime Auto Financing Conference on June 4 and 5, respectively.
Amid supply chain concerns and tariff-induced market uncertainty, captives are meeting with their OEM partners and deciding whether to keep incentives they began in response to the tariffs.
Meanwhile, powersports lender Ironhorse Funding, which funds more than $20 million per month in originations, is seeking over $120 million in forward-flow commitments.
In the marine world, dealers have reported a rise in repower, or boat engine replacement sales.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and powersports for the week ended June 6.
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. TransUnion’s Q1 2025 Credit Industry Insights Report shows the 60-plus day delinquency rate at 1.38%, the highest first-quarter peak since 2009 during the Great Recession.
As consumers search for ways to save on costs, PenFed Credit Union’s refinance applications are up 75%, according to Chris Kleczynski, vice president and head of auto lending product strategy.
Another tariff shakeup occurred last week after a federal court ruled President Donald Trump’s unilateral levies were unconstitutional, though an appeals court reversed the block within 24 hours.
With a backdrop of tariffs, consumer spending growth slowed, with personal spending up 0.1% in April compared to a 0.7% growth a month prior.
While some parts of the auto industry are experiencing upticks in sales and pricing in this uncertain environment, the powersports market is declining. Towable vehicle values dropped 9.3% year over year in April. Eric Lawrence, Black Book’s principal automotive analyst, said that the motorhome and towable market will likely experience further decline in the coming months.
Boat registrations fell 14% YoY in April, according to BMO Capital Markets, and Bombardier Recreational Products noted a drop in retail sales, both related to tariff shocks and uncertainty.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and powersports for the week ended May 30.
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-term loans to address affordability.
Against the backdrop of higher vehicle prices and tariffs, Chase Auto and Santander Consumer USA are leaning into relationships with manufacturers to drive growth.
Auto lenders are also diving into AI and automation to improve customer experience, tap refinance demand and enhance underwriting processes.
Despite potential elimination of the federal EV tax credit, lenders are bullish on the sector as manufacturers remain committed to electrification goals.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss top takeaways from Auto Finance Summit East 2025.
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 flexibility for consumers.
Financing appetite has “grown tremendously” in the powersports market, Reyes said. He has more than 15 years’ management experience in the automotive and powersports industries.
Meanwhile, promotions across the market have been largely steady over the past few months, Synchrony Senior Vice President Susan Medrano, who is also general manager of Synchrony Outdoors, told AFN. Synchrony also helps educate dealers on what financing options and promotions may work best for their customer base that will meet the dealership and manufacturers’ goals.
Listen to this special episode of the “Weekly Wrap,” podcast, as Synchrony’s Medrano and dealership manager Reyes join Auto Finance News Editor Amanda Harris to discuss financing and sales trends during National Small Business Week, which takes place May 4-10.
Capital One is looking at ways to expand the use of AI-based agents on the heels of launching its agentic AI-based tool, Chat Concierge, earlier this year.
Chat Concierge answers customer queries and can help with tasks such as comparing available vehicles and exploring financing options online before consumers head to a dealership.
In building its tech stack, Capital One reviewed how consumers use AI-based tools, the types of questions they ask, and how digital communication can be used to drive customers into the dealership, Annie Fallows, head of the bank’s dealer-facing Navigator Platform, told Auto Finance News. Navigator Platform, launched in 2023, allows dealers to access information such as inventory searches and pre-qualification to provide more accurate financing offers to customers.
“We made an intentional choice that we wanted to lead with being helpful versus lead with immediately trying to collect [a customer’s] name and contact info,” she said. “Our dealers are able to take all that information about what's happened on the chat to pick up in store and get to that car sale that everyone is working for. This is just the beginning of the journey.”
The bank is reviewing ways to improve Chat Concierge and apply it to other operations both internally and externally, Fallows said, “whether that’s making our associates more effective [or] looking at additional places in the dealer process that would benefit from this type of interaction.
“We’re at the beginning of a new journey, and it starts with making sure that our models and our technology are working the way that they're intended and providing high-quality interactions.”
Capital One’s auto originations rose 22.4% year over year in the first quarter to $9.2 billion, while the bank’s auto book ticked up 5.2% YoY to $77.7 billion, according to the bank’s April 22 earnings supplement.
During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Capital One’s Fallows discuss the latest trends in customer experience, dealer relations and technology.
First-quarter bank earnings highlighted mixed results as some banks saw an uptick in originations and leasing volume, while credit performance largely improved.
Ally Financial’s auto originations increased 4.1% year over year as lease originations were up 28.6% YoY. The bank’s retail auto delinquencies declined 9 basis points (bps) YoY to 3.79%.
Across the regional banks, Huntington Bank’s auto originations rose 25% YoY, while U.S. Bank’s indirect loan and lease originations were down 27.3% YoY.
Fifth Third Bank, PNC Financial and Truist joined several auto lenders in reporting declines in delinquencies and credit losses in Q1.
Meanwhile, new-vehicle affordability hit the best level in 45 months in March but auto tariffs are expected to lead to price increases and contribute to lower sales in the coming months.
Prolonged tariffs are also projected to contribute to a decline in auto asset-backed securitization volume and increased delinquencies across securitized auto loans.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editor Aidan Bush discuss Q1 bank earnings and top trends across affordability and consumer health for the week ended April 18.
Credit access improved and vehicle prices were steady in March before tariffs took effect, while the first wave of first-quarter earnings point to growth for auto lenders.
Auto loan approval rates and subprime share increased in March, contributing to improved credit access.
Increased demand ahead of the tariff-induced price hikes led to a surge in vehicle sales in March, while Q1 bank earnings so far reflect strength in originations.
CarMax Auto FinanceChase Auto and Wells Fargo Auto all saw year-over-year originations growth, with originations up 6%, 20.2% and 12.2%, respectively. However, ongoing economic uncertainty could affect lenders’ strategies. For example, CarMax announced it will shift its long-term growth timelines due to macroeconomic concerns.
Meanwhile, a proposed Senate bill could make auto loan interest tax deductible for U.S.-made cars, but some legal experts say the bill’s language does not clearly define a U.S.-made vehicle.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editor Aidan Bush discuss pre-tariff vehicle prices, credit access and earnings trends for the week ended April 11.
The auto industry is rapidly responding to tariffs that took effect last week, while subprime lenders continue to navigate risk and credit performance.
Shares of the three major U.S. automakers — Ford, General Motors, and Stellantis — fell sharply at market close on April 3, dropping 5.9%, 4.3%, and 9.4%, respectively, as the tariffs officially took hold.
In response, Ford and Stellantis announced on April 4 that they will extend employee pricing to all consumers, while Stellantis and GM unveiled major production adjustments aimed at mitigating the expected rise in vehicle prices.
The looming price hikes also spurred a sales surge in March, as consumers rushed to buy ahead of anticipated increases.
As automakers react to tariffs, subprime lenders are still searching for a post-pandemic “new normal,” approaching 2025 with cautious optimism. Lenders are working to strike a balance between risk appetite and maintaining credit performance, prompting some to strategically pull back from lending to undocumented borrowers.
In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer and Associate Editor Aidan Bush unpack the initial fallout from the new tariffs and preview what’s ahead as the industry braces for long-term impacts.
The auto industry is bracing for impact as tariffs on vehicles take effect April 3.
Auto stocks slumped on March 26 after confirmation that the tariffs will take effect as planned. The Big Wheels Stock Index fell 2.8% by market close, marking a sharp drop that has continued as the tariff deadline approaches.
That market dip comes alongside fresh signs of consumer unease. U.S. consumer sentiment fell to its lowest level in more than two years in March, while long-term inflation expectations jumped to a 32-year high. The University of Michigan’s final sentiment index dropped to 57 in March, down from 64.7 in February.
Meanwhile, industry performance dipped as tariff fears set in, auto loan rejection rates crept up.
The Auto Finance Composite Index landed at 135.06 in February, down 14% year over year and 3.4% month over month. The index, factoring multiple datasets, measures whether the auto finance market is performing positively or negatively.
In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer breaks down the key takeaways from last week’s tariff developments, other top stories through March 28, and what’s ahead as the industry braces for the tariff impact.
This episode is sponsored by Earnix.
The fourth quarter highlighted still-elevated auto delinquencies, growing lease share and competitive market conditions.
Credit performance worsened in Q4, with 60-day delinquencies up 4 basis points year over year to 1.16% of auto loan balances, according to Experian. However, the rate of increase for past-due balances has slowed compared with a year ago and in 2022.
“We've been steadily increasing for the past several years on that 60-day delinquency standpoint,” Melinda Zabritski, head of automotive financial insights at Experian, told Auto Finance News. “While it is at one of the peaks, it's unlike what we saw with the recession, where delinquency pretty much came out of nowhere. I wouldn't say anyone has been surprised with the increased levels of delinquency.”
Leasing is also picking up as consumers look for lower monthly payments and EVs drive higher share. Lease share industrywide rose to 24.5% in Q4 from 22.6% a year prior, according to Experian. Indirect auto lessor Cal Automotive, for one, is expanding in Florida as lease penetration rises in tandem with high interest rates and monthly payments.
Meanwhile, banks picked up market share in Q4 while credit unions scaled bank and captives continued to lead, largely driven by incentives, Zabritski said.
During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Experian’s Zabritski discuss trends in affordability, pricing, auto tariffs, EVs and credit performance.
Diversification across public and private funding sources is key to driving origination growth for auto lenders as the cost of funds fluctuates and investors look to put an abundance of capital to work in auto finance.
Auto Finance News’ March 11 webinar “Funding Strategies: From Warehousing to Private to ABS” shed light on interest from private investors in auto and the amount of money that is available to originators.
Insurance companies arelarge players in backing private investment in auto, especially as lenders consider diversifying their funding sources to include asset managers alongside banks and public capital markets.
Meanwhile, late-stage delinquencies rose in the fourth quarter but the pace of increase is stabilizing compared to large upticks in 2022 and 2023.
As tax refund season approaches, affordability and credit access improved in February while average transaction prices saw a slight uptick.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses the top takeaways from last week’s funding webinar along with other top stories for the week ended March 14.
Tariff uncertainty continues to disrupt the auto industry; companies increasingly rely on AI for innovation and efficiency.
The auto industry has prepared for an "adjustment period" as 25% tariffs on Canada and Mexico were set to take effect on March 4. President Donald Trump announced a one-month delay the next day.
The Federal Reserve’s latest Beige Book showed signs of worry as uncertainty trade policy sets in, with tariffs likely to raise car prices.
Meanwhile, AI-driven lending platform Upstart is enhancing its auto refinance technology to enable consumers to complete the process seamlessly, without document uploads and with minimal human involvement.
Agentic AI is also growing in financial services as lenders look to enhance customer experience.
Capital One is using agentic AI at dealerships to streamline car buying, allowing customers to access information, schedule test drives and compare vehicles online.
The Auto Finance News team will publish a feature today detailing the use of agentic AI in the sector.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends including economic uncertainty and AI in auto finance for the week ended March 7.
This episode is sponsored by Earnix.
The first half of 2025 is expected to bring stabilizing delinquencies, increased demand for automotive refinance and mixed vehicle price and sales dynamics.
Auto loan delinquencies are projected to cool in the second quarter as the market stabilizes, improving lenders’ appetite for auto credit. Auto originations are also expected to increase between 12% to 20% as tax refunds boost consumer demand.
Refinance volume is expected to pick up in 2025 as interest rates decline and lenders revamp their refi products to tap into consumer demand.
Rates and vehicle prices also will define sales and pricing trends across the automotive industry as pending tariffs are poised to raise car prices by thousands of dollars. On the EV front, possible changes to federal tax credits could impact sales even as EV prices and battery costs continue to decline.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends impacting vehicle sales, pricing and consumer demand for the week ended Feb. 28.
Used EV values have fluctuated amid uncertainty over tax credits and potential tariffs.
“For the used EV market, if you want to describe it in one word right now, it's ‘volatile,’” Paul Fortin, co-founder and head of automotive products at Exponential Markets, told Auto Finance News.
“The reason it's volatile is that the overall -car market right now is also volatile. There's uncertainty with macroeconomic variables, there’s uncertainty with industry variables, and there’s a normal volatility that exists,” he said.
In the short term, with talk of federal tax incentives being eliminated, consumers are rushing to purchase a used EV or lease a new one before the incentives are removed, Fortin said.
In January, used EV sales increased 30.5% year over year, reaching 26,933 units, while the supply of used EVs tightened to 45 days’ supply, down 23.3% YoY, according to a Feb. 20 report by Cox Automotive.
Meanwhile, after declining in January, the Exponential Electric Vehicle Index, measuring wholesale prices of used EVs and inventory awaiting sale, landed at 91.88 as of Feb. 20, up 1.6% year to date, and 4.2% YoY.
“In the short term, you have these forces that are pushing values up,” Fortin said. “On the longer term, you have these forces that are pushing [values] down.”
During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Associate Editor James Van Bramer discusses used EV price volatility with Exponential Markets’ Fortin.
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The Department of Government Efficiency, run by Elon Musk, effectively shut down the Consumer Financial Protection Bureau over the weekend, adding to uncertainty regarding operations after CFPB Director Rohit Chopra was fired last week.
Auto retailers Asbury Automotive and Group 1 Automotive in the fourth quarter reported a double-digital year-over-year increase in finance and insurance revenue as sales rose.
Ford Credit also reported Q4 earnings last week. The captive’s U.S. and Canada consumer loan and lease outstandings increased 8.4% YoY to $89.2 billion as lease volume picked up and credit losses rose.
In powersports, Harley-Davidson Financial Services’ originations declined 16% YoY in Q4 and provisions for credit losses rose 27% YoY. North American retail sales of Harley-Davidson motorcycles also decreased 13% YoY, while sales of LiveWire electric motorcycles fell 54% YoY.
The AIM Expo Tradeshow last week in Las Vegas highlighted stable promotional activity across the industry along with trends in technology adoption and motorcycle sales.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss trends in compliance, sales, earnings and powersports for the week ended Feb. 7.
