The return of higher supply levels is contributing to an uptick in incentives and increased new-vehicle sales projections. Meanwhile, the powersports market is feeling the ramifications of higher interest rates. 

Auto lenders have been active in the past week in funding initiatives, while competition has ramped up across the market.

Powersports lenders project mixed origination volume in 2024 as credit unions and regional banks pull back in the space and consumer application quality declines. In this episode of the “Weekly Wrap,” Auto Finance News Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top trends during the week ended March 15.  

Wholesale used-vehicle values ticked down in February while electric vehicle residual values are causing concern for asset-backed securities investors. In this episode of the “Weekly Wrap,” Auto Finance News Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top trends during the week ended March 8.  

The auto finance industry continues to face a tightened credit environment, worsening credit performance and recoveries, and shrinking subprime market share as affordability concerns persist.

Aftermarket product sales have become more crucial for dealerships as vehicle profits decline, prompting the industry to increasingly turn to digital finance and insurance offerings.  

The ancillary product market is also a hot topic for regulators as the Consumer Financial Protection Bureau and the FTC look closely at how lenders manage the addition of aftermarket products within retail installment contracts and how financiers issue refunds when add-on products are canceled.  

Auto lenders expect 2024 to be a year of growth driven by technology updates and loosening credit standards. Powersports sales and financing performance are mixed. 

Earnings season continued last week with GM Financial and Credit Acceptance Corp. reporting a rise in originations and worsened consumer credit performance.

Rising costs and limited supply have created challenges for used-car retailers, evidenced by Vroom’s planned shutdown of its used-car sales and e-commerce business and the closure of several Sonic Automotive-owned dealerships last week.

Elevated interest rates contributed to a competitive landscape that prompted some banks to slow auto lending activity in the fourth quarter while others saw growth in origination volume.