Auto credit performance worsens, prompts provision spike 

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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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...

15 Sep 12min

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 Juli 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 Juli 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 Juli 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 Juli 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 Juni 11min

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