Used-car financing gained ground in the first quarter as affordability pressures continued to push consumers away from higher-priced new vehicles. 

Used vehicles accounted for 58.6% of all auto financing in Q1, up from 58.2% a year earlier and marking the first Q1 increase since 2023, according to Experian.  

The shift underscores a broader affordability challenge facing the auto industry as average used-vehicle loan amounts rose 3% YoY to $27,070, while average monthly payments increased 1.5% YoY to $531. 

New vehicles remained considerably more expensive, with average loan amounts hitting $43,925 and monthly payments climbing 2.9% YoY to $770. 

As consumers look for lower-cost options, lenders also are expanding credit access, with nonprime borrowers accounting for 31.6% of all auto loans in Q1.  

Growth remained a key theme for lenders, including AutoNation Finance, Global Lending Services, Stellantis Financial Services and Lendbuzz, which were among the fastest-growing auto lenders by outstandings in 2025, according to the latest Big Wheels Rankings. 

Auto ABS, AI and compliance take center stage 

Meanwhile, funding markets were active, with U.S. auto asset-backed securities issuance at $79.3 billion year to date through May 29, up 3.9% YoY, according to JPMorgan Securities.  

In addition, the FTC disclosed the names of 97 dealership groups that received warning letters concerning potentially deceptive vehicle pricing practices, reinforcing the agency’s focus on transparency and compliance.  

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez II and Senior Associate Editor Aidan Bush discuss top trends across macroeconomic dynamics, affordability, funding and powersports lending for the week ended May 29.