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.