Pre-tariff car prices hold, Q1 earnings kick off

Pre-tariff car prices hold, Q1 earnings kick off

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.

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Episoder(335)

Chase Auto head of pricing, credit strategy says granular decisioning key

Chase Auto head of pricing, credit strategy says granular decisioning key

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 cre...

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GM Financial's Kyle Birch reflects on captive build-out, career ahead of retirement

GM Financial's Kyle Birch reflects on captive build-out, career ahead of retirement

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 l...

19 Aug 18min

Arivo Acceptance eyes increased auto ABS cadence

Arivo Acceptance eyes increased auto ABS cadence

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 of...

10 Aug 19min

Ally Financial, Capital One, Huntington Bank auto originations mixed

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

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 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’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 

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

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