Powersports lender Synchrony is working closely with dealerships to align financing options with consumer appetite and sales goals. 

West Palm Beach, Fla.-based Broward Motorsports of Palm Beach, for one, benefits from offering low-rate financing options through financiers such as Synchrony, Alex Reyes, sales manager at the motorcycle dealership, told Auto Finance News. He said the Synchrony Outdoors credit card provides flexibility for consumers. 

Financing appetite has “grown tremendously” in the powersports market, Reyes said. He has more than 15 years’ management experience in the automotive and powersports industries.

Meanwhile, promotions across the market have been largely steady over the past few months, Synchrony Senior Vice President Susan Medrano, who is also general manager of Synchrony Outdoors, told AFN. Synchrony also helps educate dealers on what financing options and promotions may work best for their customer base that will meet the dealership and manufacturers’ goals.

Listen to this special episode of the “Weekly Wrap,” podcast, as Synchrony’s Medrano and dealership manager Reyes join Auto Finance News Editor Amanda Harris to discuss financing and sales trends during National Small Business Week, which takes place May 4-10. 

Capital One is looking at ways to expand the use of AI-based agents on the heels of launching its agentic AI-based tool, Chat Concierge, earlier this year.

Chat Concierge answers customer queries and can help with tasks such as comparing available vehicles and exploring financing options online before consumers head to a dealership.  

In building its tech stack, Capital One reviewed how consumers use AI-based tools, the types of questions they ask, and how digital communication can be used to drive customers into the dealership, Annie Fallows, head of the bank’s dealer-facing Navigator Platform, told Auto Finance News. Navigator Platform, launched in 2023, allows dealers to access information such as inventory searches and pre-qualification to provide more accurate financing offers to customers. 

“We made an intentional choice that we wanted to lead with being helpful versus lead with immediately trying to collect [a customer’s] name and contact info,” she said. “Our dealers are able to take all that information about what's happened on the chat to pick up in store and get to that car sale that everyone is working for. This is just the beginning of the journey.” 

The bank is reviewing ways to improve Chat Concierge and apply it to other operations both internally and externally, Fallows said, “whether that’s making our associates more effective [or] looking at additional places in the dealer process that would benefit from this type of interaction.  

“We’re at the beginning of a new journey, and it starts with making sure that our models and our technology are working the way that they're intended and providing high-quality interactions.” 

Capital One’s auto originations rose 22.4% year over year in the first quarter to $9.2 billion, while the bank’s auto book ticked up 5.2% YoY to $77.7 billion, according to the bank’s April 22 earnings supplement. 

During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Capital One’s Fallows discuss the latest trends in customer experience, dealer relations and technology. 

First-quarter bank earnings highlighted mixed results as some banks saw an uptick in originations and leasing volume, while credit performance largely improved.  

Ally Financial’s auto originations increased 4.1% year over year as lease originations were up 28.6% YoY. The bank’s retail auto delinquencies declined 9 basis points (bps) YoY to 3.79%. 

Across the regional banks, Huntington Bank’s auto originations rose 25% YoY, while U.S. Bank’s indirect loan and lease originations were down 27.3% YoY. 

Fifth Third Bank, PNC Financial and Truist joined several auto lenders in reporting declines in delinquencies and credit losses in Q1. 

Meanwhile, new-vehicle affordability hit the best level in 45 months in March but auto tariffs are expected to lead to price increases and contribute to lower sales in the coming months.  

Prolonged tariffs are also projected to contribute to a decline in auto asset-backed securitization volume and increased delinquencies across securitized auto loans. 

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editor Aidan Bush discuss Q1 bank earnings and top trends across affordability and consumer health for the week ended April 18. 

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.

The auto industry is rapidly responding to tariffs that took effect last week, while subprime lenders continue to navigate risk and credit performance. 

Shares of the three major U.S. automakers — Ford, General Motors, and Stellantis — fell sharply at market close on April 3, dropping 5.9%, 4.3%, and 9.4%, respectively, as the tariffs officially took hold. 

In response, Ford and Stellantis announced on April 4 that they will extend employee pricing to all consumers, while Stellantis and GM unveiled major production adjustments aimed at mitigating the expected rise in vehicle prices. 

The looming price hikes also spurred a sales surge in March, as consumers rushed to buy ahead of anticipated increases. 

As automakers react to tariffs, subprime lenders are still searching for a post-pandemic “new normal,” approaching 2025 with cautious optimism. Lenders are working to strike a balance between risk appetite and maintaining credit performance, prompting some to strategically pull back from lending to undocumented borrowers. 

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer and Associate Editor Aidan Bush unpack the initial fallout from the new tariffs and preview what’s ahead as the industry braces for long-term impacts. 

The auto industry is bracing for impact as tariffs on vehicles take effect April 3. 

Auto stocks slumped on March 26 after confirmation that the tariffs will take effect as planned. The Big Wheels Stock Index fell 2.8% by market close, marking a sharp drop that has continued as the tariff deadline approaches.  

That market dip comes alongside fresh signs of consumer unease. U.S. consumer sentiment fell to its lowest level in more than two years in March, while long-term inflation expectations jumped to a 32-year high. The University of Michigan’s final sentiment index dropped to 57 in March, down from 64.7 in February. 

Meanwhile, industry performance dipped as tariff fears set in, auto loan rejection rates crept up.  

The Auto Finance Composite Index landed at 135.06 in February, down 14% year over year and 3.4% month over month. The index, factoring multiple datasets, measures whether the auto finance market is performing positively or negatively.   

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer breaks down the key takeaways from last week’s tariff developments, other top stories through March 28, and what’s ahead as the industry braces for the tariff impact. 

This episode is sponsored by Earnix.  

The fourth quarter highlighted still-elevated auto delinquencies, growing lease share and competitive market conditions.  

Credit performance worsened in Q4, with 60-day delinquencies up 4 basis points year over year to 1.16% of auto loan balances, according to Experian. However, the rate of increase for past-due balances has slowed compared with a year ago and in 2022. 

“We've been steadily increasing for the past several years on that 60-day delinquency standpoint,” Melinda Zabritski, head of automotive financial insights at Experian, told Auto Finance News. “While it is at one of the peaks, it's unlike what we saw with the recession, where delinquency pretty much came out of nowhere. I wouldn't say anyone has been surprised with the increased levels of delinquency.” 

Leasing is also picking up as consumers look for lower monthly payments and EVs drive higher share. Lease share industrywide rose to 24.5% in Q4 from 22.6% a year prior, according to Experian. Indirect auto lessor Cal Automotive, for one, is expanding in Florida as lease penetration rises in tandem with high interest rates and monthly payments. 

Meanwhile, banks picked up market share in Q4 while credit unions scaled bank and captives continued to lead, largely driven by incentives, Zabritski said.  

During this special episode of the “Weekly Wrap,” podcast, Auto Finance News Editor Amanda Harris and Experian’s Zabritski discuss trends in affordability, pricing, auto tariffs, EVs and credit performance. 

Diversification across public and private funding sources is key to driving origination growth for auto lenders as the cost of funds fluctuates and investors look to put an abundance of capital to work in auto finance.  

Auto Finance News’ March 11 webinar “Funding Strategies: From Warehousing to Private to ABS” shed light on interest from private investors in auto and the amount of money that is available to originators.  

Insurance companies arelarge players in backing private investment in auto, especially as lenders consider diversifying their funding sources to include asset managers alongside banks and public capital markets. 

Meanwhile, late-stage delinquencies rose in the fourth quarter but the pace of increase is stabilizing compared to large upticks in 2022 and 2023. 

As tax refund season approaches, affordability and credit access improved in February while average transaction prices saw a slight uptick.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses the top takeaways from last week’s funding webinar along with other top stories for the week ended March 14. 

Tariff uncertainty continues to disrupt the auto industry; companies increasingly rely on AI for innovation and efficiency. 

The auto industry has prepared for an "adjustment period" as 25% tariffs on Canada and Mexico were set to take effect on March 4. President Donald Trump announced a one-month delay the next day. 

The Federal Reserve’s latest Beige Book showed signs of worry   as uncertainty trade policy sets in, with tariffs likely to raise car prices. 

Meanwhile, AI-driven lending platform Upstart is enhancing its auto refinance technology to enable consumers to complete the process seamlessly, without document uploads and with minimal human involvement. 

Agentic AI is also growing in financial services as lenders look to enhance customer experience.  

Capital One is using agentic AI at dealerships to streamline car buying, allowing customers to access information, schedule test drives and compare vehicles online. 

The Auto Finance News team will publish a feature today detailing the use of agentic AI in the sector.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss top trends including economic uncertainty and AI in auto finance for the week ended March 7. 

This episode is sponsored by Earnix.

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.