CarMax replaces CEO, EV makers report Q3 growth as car sales mixed

Auto retailers and fintechs mostly reported growth in the third quarter amid mixed October retail sales, flat vehicle values and some layoffs.

CarMax named David McCreight as its interim president and CEO, replacing Bill Nash, effective Dec. 1. Nash is not retiring, and the shakeup comes as the Richmond, Va.-based retailer’s comparable store used-vehicle retail sales are expected to drop between 8% and 12% year over year in the third quarter of its fiscal 2026, according to CarMax’s Nov. 6 release.

Meanwhile, EV makers Lucid Motors and Rivian saw deliveries jump 46.6% YoY and 31.8% YoY, respectively, in the third quarter ended Sept. 30.

AI-powered lending platform Upstart also saw growth in Q3, with auto loan originations up 357.1% YoY on issuance of 6,705 loans, according to a Nov. 4 Upstart presentation.

However, fintech Open Lending saw certified loan volume drop 13% YoY to 23,880, according to its Nov. 6 release. The fall came as Open Lending prepares to roll out a new credit decisioning platform.

Vroom subsidiary United Auto Credit Corp. also originated $107 million in the third quarter ended Sept. 30, up 7% year over year but down 6.1% quarter over quarter.

The mostly positive Q3 reports came as auto lenders tightened their credit standards. The average new-vehicle auto loan rate increased 19 basis points month over month in October to 9.6%, according to Cox Automotive. This rise is despite a 25-basis-point cut by the Federal Reserve on Oct. 29.

Meanwhile, lender Prestige Financial Services reportedly laid off employees in early November, according to posts from former employees. The reported layoffs come as the subprime market faces challenges in affordability and credit performance.

With these headwinds and elimination of the federal EV tax credit, automakers reported mixed sales in October. Toyota Motor North America saw sales surge 11.8% YoY to 207,910 vehicles, while Mazda’s sales plummeted 32.6% YoY to 25,161 vehicles, according to the companies.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses trends across third-quarter earnings, vehicle values and sales for the week ended Nov. 7.