The Auto Finance Roadmap30 Sep 2024

Auto credit performance worsens, prompts provision spike

High rates and rising consumer debt levels still drive a worsening auto loan landscape.

Delinquencies and losses rose across prime and nonprime securitized auto loans in Kroll Bond Rating Agency’s August auto loan asset-backed securitization index published Sept. 23. Prime recovery rates increased while nonprime recoveries declined.

CarMax Auto Finance (CAF) also increased its provision for credit losses by 25.4% to $112.6 million for the fiscal second quarter of 2025, ended Aug. 31, according to the company’s earnings release. CAF’s finance income fell 14.4% year over year to $115.6 million, while originations ticked down 1.7% YoY to $2.2 billion.

Meanwhile, multiple auto lenders are preparing for growth in the coming year. Affinity Federal Credit Union is looking to add to its dealership base in New York, New Jersey and Pennsylvania as it steps back into leasing after a three-year hiatus.

SameDay Auto Finance is planning to double its portfolio to about $60 million within the next two years after expanding into Oklahoma and prioritizing top-performing dealerships.

Auto Finance News is also pleased to highlight nine powersports finance executives to watch in 2025 following a turbulent first half of 2024, but with optimism heading into the 2025 season.

In this episode of the “Weekly Wrap” Auto Finance News Editor Amanda Harris and Associate Editors James Van Bramer and Ashley Savage discuss growth and performance trends for the week ending Sept. 27.

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Episoder(332)

Ally Financial, Capital One, Huntington Bank auto originations mixed

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 i...

27 Jul 7min

Wells Fargo Auto, Chase Auto originations jump in Q2

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 F...

20 Jul 6min

Subaru Motors Finance to target first-time buyers, expand credit access

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 P...

13 Jul 23min

BMW Financial’s lease penetration normalizes post-EV tax credit

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 Am...

6 Jul 23min

Rising insurance costs add to affordability woes

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 ro...

29 Jun 11min

Podcast: Carvana, CarMax sales rise, interest rates decline

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 ...

22 Jun 10min

Carvana VP of finance talks rate cuts, profitability, sales growth

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’ ne...

15 Jun 19min

Buyers’ AI-powered research reshapes powersports purchases

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, promoti...

8 Jun 18min