The Auto Finance Roadmap

Gaps in data verification likely contributed to missed double-pledging of assets at Tricolor Auto, prompting changes at rating agencies, Larry Chiavaro, president at his consulting company LC Advisors Group, told Auto Finance News during a special recording of the Weekly Wrap podcast.  Chiavaro also served as executive vice president and co-founder of First Associates Loan Servicing from 2010 to 2021. That company was rebranded as Vervent in 2020. The backup servicer took over Tricolor’s portfolio following the company’s Sept. 10 bankruptcy filing.  Tricolor is under investigation for allegations of fraudulently double-pledging assets to warehouse lines, with former Tricolor Chief Executive Daniel Chu and other former Tricolor executives facing a federal indictment alleging they committed fraud at the company.  The Tricolor bankruptcy served as a “wake-up call for the industry” and has spurred changes, Chiavaro tells AFN.In this special episode of the Weekly Wrap, Auto Finance News Founder and CEO JJ Hornblass joins Chiavaro to discuss the collapse of Tricolor Auto, backup servicing operations and risk management.  

Auto dealers are expecting a strong tax season to spur a sales jolt early this year, but lenders and dealers are split on their full-year outlook amid rising vehicle prices and macroeconomic challenges facing consumers.  Other factors that market participants are monitoring include how fluctuating interest rates and unemployment will affect consumer affordability and car sales. In fact, December 2025 sales were projected to fall 3.5% year over year to 1.4 million, according to Cox Automotive. Those figures will be released later this month. However, 2025 new-vehicle sales reached the best level in six years, according to a Cox Auto Dec. 17 report. Full-year sales were projected to increase 1.8% in 2025 compared with 2024, according to Kelley Blue Book estimates.  At the same time, credit access improved in 2025 as fewer banks reported tightening their lending standards. The auto loan rejection rate, however, climbed 1 percentage point YoY in October 2025 to 15.2%. Still, retailers such as Tempe, Ariz.-based DriveTime are eyeing growth in 2026 as they navigate the changing auto landscape. Chief Executive Mary Leigh Phillips told Auto Finance News that DriveTime is eyeing double-digit growth across its subsidiaries. Tricolor effects Among the changes the auto industry will navigate in 2026 are the effects of Tricolor Auto’s collapse, which is still playing out in court. At today’s court hearing, backup servicer Vervent’s responsibilities were outlined and permission was granted for Vervent to use Tricolor funds to pay collateral insurance protection and Texas seller-finance sales taxes.   Read AFN’s top 5 Tricolor stories in 2025.  Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack recent auto finance news and provide a look at the year ahead.  Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.   

An uptick in repossessions, continued affordability challenges and weakened credit performance are top of mind for lenders headed into 2026.  The shutdown of several lenders this year combined with inflationary pressures is likely to contribute to more repossessions at the end of 2025 and in early 2026. By Dec. 31, repossession assignments nationally are projected to surpass 10.5 million units for the year, according to American Recovery Association data.  At the same time, credit performance continued to worsen across securitized nonprime auto loans in November while prime loans had some deterioration. This bifurcation in credit tier performance is expected to continue next year.  Car sales have also been challenged as consumers face high sticker prices and shift to used vehicles, creating more competition in the market. CarMax’s used-vehicle sales fell 8% year over year in its fiscal third quarter to 169,557 units, while CarMax Auto Finance’s originations declined 9.3% YoY to $1.8 billion.  Meanwhile, Auto Finance News is pleased to name Sanjiv Yajnik, president of financial services at Capital One, the 2025 Auto Finance Executive of the Year.  In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across sales, affordability and credit performance for the week ended Dec. 19.

New identification requirements for vehicle registrations in Texas have prompted concerns from dealers and lenders about a potential increase in unregistered or uninsured cars on the road. The Texas Department of Motor Vehicles in a Nov. 19 bulletin clarified that documentation required to register vehicles or renew registrations cannot include expired IDs and that passports issued by a foreign country must include documentation proving lawful admission to the U.S. The changes could hamper vehicle sales and lead to an uptick in illegally operated cars, creating collateral risk for auto lenders. In the wider market, credit access improved in November even as average transaction prices rose. The Dealertrack Credit Availability Index increased 4% year over year to 99.1 as approval rates, subprime share and the share of longer-term loans rose. The new-vehicle ATP ticked up 1.3% YoY to $49,814, while incentives as a percentage of ATP was 6.7%, down from 7.9% of ATP a year ago.  High prices are prompting consumers to shift to used vehicles, with banks such as Huntington seeing the mix of originations also shift away from new cars.  Meanwhile, auto loan delinquency rates are projected to increase next year but the overall rate of growth is expected to slow. Auto loan delinquencies of 60-plus days are forecast to land at 1.54% in Q4 2026, up 3 basis points compared with the Q4 2025 projected rate, according to TransUnion. However, the percentage change YoY is expected to be 1.4% in Q4 2026, down from 2.6% forecasted in Q4 2025. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across compliance, affordability and credit performance for the week ended Dec. 12. 

Electric vehicle sales declined at most major manufacturers in November on the heels of an uptick in EV share of total new-car sales in the third quarter, due in large part to a pull-ahead of purchases before the federal EV tax credit expired.  Automakers including American Honda, Ford Motor, Hyundai, Subaru and Toyota reported double-digit year over year declines in EV sales during the month, while overall sales were mixed. EV sales slowed in November but in Q3 benefited from consumers wanting to take advantage of the federal tax credit of up to $7,500 before Sept. 30, contributing to a jump in new-vehicle EV financing share to 11.4%. A strong tax refund season is projected to boost car sales in early 2026 as some consumers lean into the used-car market due to affordability concerns. Used-vehicle values were flat YoY and up 1.2% month over month in November, according to the latest Manheim index. In powersports, sales were mixed for the most recent quarter. Canadian powersports manufacturer Bombardier Recreational Products’ North American retail sales declined 4% YoY in its fiscal third quarter ended Oct. 31. RV manufacturer Thor Industries’ net sales, however, jumped 11.5% YoY in its fiscal first quarter ended Oct. 31. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across vehicle sales, pricing, consumer sentiment and powersports for the week ended Dec. 5. This episode is sponsored by The Work Number by Equifax. 

Bankrupt subprime retailer Tricolor’s 10,000 remaining vehicles may be sold by March 2026 if trustee Anne Burns’ motion is approved.Tricolor backup servicer Vervent and vehicle management company Holman will sell all remaining vehicles, if the motion is approved by Judge Michelle Larson. This includes vehicles that may belong to Tricolor’s creditors, through third-party auctioneers, according to court documents.The proposal came ahead of former Tricolor Chief Executive Daniel Chu’s motion seeking to shore up $15 million in legal defense funds, according to U.S. Bankruptcy Court of the Northern District of Texas Dallas Division court documents. The funds are from insurance payments made by Tricolor before it went bankrupt, according to the documents.Across the subprime auto industry, credit health is declining. Early-stage delinquencies across nonprime securitized auto loans rose 88 basis points year over year and the rate of nonprime securitized loans more than 60 days past due rose 65 basis points YoY in October, according to Kroll Bond Rating Agency’s auto loan asset-backed securitization index.Meanwhile, new-vehicle sales were down in five of the 12 regions covered by Federal Reserve banks, according to the most recent edition of the Fed’s Beige Book. New-vehicle sales were weighed down by declining consumer demand and EV sales.Automakers offered low APR options and cash-back incentives for Black Friday to stay competitive on rates while balancing affordability concerns. Dealers also expect a short-term dip in wholesale used-vehicle inventory through December as fleet management companies hold onto cars longer.In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across the subprime auto market, vehicle incentives and Tricolor’s Chapter 7 bankruptcy for the week ended Nov. 28.

Last week brought more shakeups in the auto finance industry as lender Flagship Credit Acceptance announced it was finalizing a sale of the company to an investment firm, while Prestige Financial Services stopped originations.  Chadds Ford, Pa.-based Flagship announced on Nov. 21 that it had entered into an agreement to sell the business to New York-based InterVest and would be rebranded to Flagship Financial Group, according to a company release. Once the transaction is closed, Jim Landy will become chief executive.  Prestige Financial Services also informed dealerships that it was stopping originations as of Nov. 20, according to an email obtained by Auto Finance News.  Draper, Utah-based Prestige will continue to service its loans and fund contracts received before Nov. 20, according to the email.  Prestige also reportedly laid off an undisclosed number of employees this month, AFN reported.  Meanwhile, Tricolor representatives were no-shows at the Section 341 Meeting of Creditors on Nov. 18, which was attended by 150 people.  The lack of representation was unusual and raised questions about why no one appeared on Tricolor’s behalf.  In other news, AFN is pleased to recognize 10 auto finance executives to watch in 2026. These leaders have produced noticeable results in their respective organizations in 2025 and are heading transformative strategies into next year.  Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week’s auto finance.  

The compliance industry continues to face headwinds as funding for the Consumer Financial Protection Bureau is in jeopardy after the Department of Justice recently ruled that the bureau cannot request money from the Federal Reserve.  The DOJ’s Nov. 7 ruling states that the “combine earnings of the Federal Reserve system” — laid out by the Dodd-Frank Act as the source of most of the CFPB’s funding — refers to Fed profits. The Fed was last profitable in 2022.  It is unclear if the CFPB will be operational in January 2026. The bureau can request funding from Congress, but approval is uncertain. Government shutdown ends The ruling on CFPB funding came just days before the U.S. House voted Nov. 12 to end the longest government shutdown in United States history.  The end of shutdown, which stretched from Oct. 1 to Nov. 12, could prove fruitful for the auto industry because consumers may have delayed auto purchases during this time, experts say. The theory, in part, is evidenced by a 2.7% drop in consumer confidence in October and slowing new-car sales. Despite industry pressures, auto industry participants continue to see resilience.  Shifts in RV industry The RV industry also is optimistic for 2026, even as it continues to grapple with ongoing challenges such as falling registrations.  Industry leaders gathered in Las Vegas this month for RV Dealers Convention and Expo 2025 to discuss the effects of macroeconomic conditions, consumer sales trends and the ROI for AI integration. Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week’s auto finance and powersports news.  

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. 

Auto lenders are homing in on key areas of underwriting to manage risk and grow in 2026 as the subprime market continues to face challenges with credit performance and affordability.Improved loan decisioning, declining interest rates, the use of data and analytics, and responsible growth are top of mind for auto lenders into next year, leaders said at the recent Auto Finance Summit 2025.The Federal Reserve cut its benchmark interest rate by another 25 basis points (bps) on Oct. 29, prompting lenders to prepare for an uptick in refinance opportunities. However, affordability remains a leading concern, especially for subprime consumers.In fact, Irvine, Calif.-based subprime auto lender Bayside Credit stopped originating auto loans against the backdrop of challenging macroeconomic conditions.Subprime credit performance is also a concern in the auto securitization market, with  and lenders that target consumers who may not be legal U.S. citizens experiencing higher-than-expected losses.In other news, subprime lender Credit Acceptance Corp.’s originations fell 16.5% year over year in the third quarter amid competition and worsening loan performance.Carvana, on the other hand, posted a 58.8% YoY jump in originations in Q3 and increased its forward-flow agreement with Ally Financial.In this episode of “Weekly Wrap,” Auto Finance News Associate Editor Aidan Bush discusses trends across underwriting, subprime lending, capital markets and third-quarter earnings for the week ended Oct. 31.

Investors are seeking more transparency following Tricolor’s Chapter 7 bankruptcy filing last month, which has also prompted several auto lenders to review their books and assure investors of loan quality and operational health.  The auto finance industry and asset-backed securitization issuers could benefit from more transparency and consistency in disclosure policies, panelists said during a session on Oct. 21 at FT Live’s ABS East in Miami. Auto lenders are reviewing their portfolios following allegations levied against Tricolor for double-pledging of assets on its warehouse lines of credit. Ford Credit reviewed its millions of contracts to confirm they “are either not securitized or we are in one deal and one deal only,” Ryan Hershberger, director of global funding and capital markets for Ford Motor, said during a panel at the show.  Investors are looking for more information and understanding on how double-pledging could occur, Lendbuzz Chief Executive Amitay Kalmar said at the event. In fact, Credit Acceptance Corp. addressed investor questions in multiple 8-K filings with the SEC as the industry becomes more cautious. Meanwhile, third-quarter earnings point to growth at banks, captives and retailers. AutoNation Finance’s originations jumped 85.7% year over year; Capital One’s auto originations rose 17.2% YoY; Lithia Motors’ finance arm Driveway Finance’s originations rose 41.3% YoY; GM Financial’s originations declined 3.5% YoY; and Ford Credit’s portfolio and earnings before taxes increased YoY. Auto Finance Summit 2025 also highlighted how auto lenders are using AI and machine learning to track borrower habits, and where consumer sentiment is trending. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, senior associate editor Truth Headlam and associate editor Aidan Bush discuss key takeaways from recent industry events, including ABS East and Auto Finance Summit 2025, as well as Q3 earnings for the week ended Oct. 24. 

Auto Finance Summit 2025 shed light on how auto lenders are responding to challenges facing the wider market, including credit performance, affordability and evolving technologies. Following subprime buy here, pay here lender Tricolor’s Sept. 10 Chapter 7 bankruptcy filing, auto asset-backed securities spreads widened, Kayvan Darouian, director of consumer asset-backed securities research at Deutsche Bank, said during an Oct. 15 presentation at the event. Still, Tricolor’s challenges do not represent issues facing the wider market, he said. Further, subprime share has “come back in the last 12 months,” and lenders should be competitive in the near prime sector, Scot Hensel, finance director at Kunes Auto Group, said during a fireside chat at the summit. Auto lenders are also leaning into AI and technology to drive efficiencies. GM Financial, for example, is piloting a digital app for dealers to manage their businesses and track information such as deal volume and floorplan balance, President and Chief Executive Susan Sheffield said during a fireside chat. Meanwhile, third-quarter bank earnings so far point to growth in auto originations and improved credit performance. Ally Financial’s auto originations rose 24.5% year over year to $11.7 billion, while Wells Fargo Auto’s originations soared 114.6% YoY to $8.8 billion. Bank of America’s net charge-offs across its direct and indirect consumer portfolio also decreased 1 basis point YoY to 0.2%. Listen as Auto Finance News Editor Amanda Harris and Associate Editor Aidan Bush dive into the top stories from Auto Finance Summit 2025 and highlight key takeaways from third-quarter bank earnings. 

The powersports industry continues to grapple with volatile market conditions including rising prices, falling sales, waning consumer demand and a rapidly changing compliance landscape, but there are some lenders and dealers who have proven themselves resilient.  Auto Finance News today announced 11 powersports executives to watch heading into 2026 who have thus far proven their ability to support lenders, dealers and consumers in a political and economic climate that is also rapidly changing. Dealers and lenders are leaning into the used market to drive sales and overall growth in the fourth quarter and heading into next year. In fact, manufacturers including Harley-Davidson are pushing certified pre-owned inventory as consumers search for more affordable purchase options.  Relationships between dealers and lenders in the auto market are also strengthening as evidenced by Arivo Acceptance becoming the captive finance arm of Ken Garff Automotive Group, news that Auto Finance News broke Oct. 10.  In other news, Tricolor Auto is reported to have stopped paying rent to some of its landlords ahead of filing for Chapter 7 bankruptcy.  Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush unpack the past week's auto finance news and unveil some of what attendees can expect at this week’s Auto Finance Summit 2025. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. This episode is sponsored by The Work Number by Equifax. 

A federal investigation into subprime auto lender Tricolor Holdings was confirmed as court proceedings began last week.  In a court hearing on Oct. 3, Tricolor’s lawyers confirmed that federal law enforcement and regulatory agencies are investigating the buy here, pay here dealer and subprime lender for alleged misconduct and alleged systemic fraud. Since Texas-based Tricolor’s Chapter’s 7 bankruptcy filing on Sept. 10, the company’s bond prices have plummeted, signaling that investors believe there is an increased risk of losses, particularly in riskier tranches. Meanwhile, third-quarter sales among auto makers climbed as OEMs pushed incentives and consumers pulled ahead their EV sales prior to elimination of the $7,500 federal tax credit on Sept. 30. In regulatory news, powersports lenders and dealers are in an interesting position amid the shifting compliance landscape. The powersports industry has long been overlooked by regulators, with a fraction of complaints the Consumer Financial Protection Bureau received since 2011 directed at the powersports industry.  But with the pullback at the CFPB and state regulators and other agencies like the FTC ramping up enforcement, it’s imperative that lenders and dealers don’t do anything to garner enforcement actions.  In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss Tricolor proceedings, OEM third-quarter sales and powersports compliance for the week ended Oct. 3. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. This episode is sponsored by The Work Number by Equifax.  Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain. 

Powersports dealers are working closely with manufacturers to balance supply with a decline in sales and worsened consumer confidence, themes that were prevalent during Powersports Finance Summit 2025, held Sept. 23-24 in Columbus, Ohio.Lender Octane, for one, is working to provide the technology and finance programs needed to support dealerships as they face smaller margins compression and lower sales alongside higher promotional spend. Dealers are also turning to used units to meet consumers’ demand for more affordable products and as many expect sales to pick up in the coming months. On the new-vehicle side, tariffs continue to be a leading concern for powersports manufacturers, especially as steel and aluminum tariffs raise costs on parts and accessories. While powersports dealer are not faring equally amid challenges plaguing the industry, prevalent themes throughout Powersports Finance Summit 2025 included optimizing for a rise in AI usage by consumers, preparing for a potential uptick in regulatory scrutiny and continued mixed sales performance by market segment. Listen as Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush recap the 2025 event and highlight news to come this week.This episode is sponsored by The Work Number by Equifax.  Stay up to date with all the news coming out of Powersports Finance Summit 2025 here.

As the Department of Justice investigates the alleged fraudulent claims against Tricolor Auto Acceptance, one expert warns that there may not be enough collateral to satisfy the subprime lender’s outstanding debt with all its financiers. In more common bankruptcy scenarios, assets are liquidated to repay outstanding debt.  “What makes it a little bit more complicated [with Tricolor] is there's 25,000 creditors in this particular case that have claims here, and some of them have claims against the same collateral,” Brian Bastin, program director for the business and automotive programs at Fort Lauderdale, Fla.-based Keiser University, tells Auto Finance News in this week’s podcast. JPMorgan Chase, Origin Bank and Fifth Third Bank all had existing warehouse lines with Tricolor and are just some of those in the long list of Tricolor’s creditors.  “In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation,” Bastin says, noting that there is a pecking order to claims and payments as a result of liquidating the lender’s assets for its Chapter 7 bankruptcy.  “In all likelihood, there probably is not going to be enough money to be able to make whole everybody in this particular situation.” -- Brian Bastin, program director for the business and automotive programs, Keiser University, Consumers should be proactive about making sure that any former loans, title liens, service contracts and warranties are properly dealt with to avoid any road bumps down the road.  Join Senior Associate Editor Truth Headlam and Keiser University’s Brian Bastin as they break down the potential implications of Tricolor’s bankruptcy for lenders, consumers and the subprime market as a whole in this week’s Weekly Wrap. This episode is sponsored by The Work Number by Equifax. 

Tricolor Auto Acceptance’s chapter 7 bankruptcy filing on Sept. 10 has led to ratings downgrades for the financier and talks of potentially wider implications for the buy here, pay here and subprime markets.  The Texas-based buy here, pay here retailer and lender closed its dealerships in tandem with its filing for liquidation.  Since then, ratings agencies Kroll Bond Ratings Agency, Moody’s Ratings and S&P Global placed their ratings on Tricolor securitization transactions under watch for potential downgrades. Backup servicer Vervent Inc. is also prepping to takeover servicing of Tricolor’s portfolio.  Tricolor’s closure could spark a ripple effect for small subprime lenders, especially after subprime lender Automotive Credit Corp. also indefinitely paused all originations Aug. 7. For floorplan lenders, bankruptcies can lead to hundreds of millions of dollars in losses and trigger efforts to recoup losses tied to remaining assets.  In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the ramifications of Tricolor Auto’s bankruptcy. 

Buy here, pay here dealership Oak Motors is slowing approval of credit applications as long-term affordability concerns persists and despite increased volume.  Anderson, Ind.-based Oak Motors’ applications were up 30% year over year at the beginning of September, according to data the dealership group provided to Auto Finance News. The dealership group did not specify the number of applications. The increase comes despite a drop in sales and amid a decline in approvals at the dealership group, which has five locations in Indiana, Executive Board Member Tiger Okeley told AFN. “We've seen about a 20% decrease in sales, and that's by design,” he said, without providing specific sales numbers. Oak Motors focuses on identifying consumers who can commit to long-term deal structures that are beneficial to the consumers and the dealership, he said.  While the BHPH dealership sells as many vehicles as it wants to sell, success depends on finding customers capable of keeping up with weekly payments, Okeley said.  “If they stop paying us, it didn't matter if we sold them a car,” he said. The bottom line is “we didn't get paid.”  BHPH is attractive to customers with risky credit profiles or those who don’t have access to traditional financing, Okeley said. Some BHPH dealerships offer customers a chance to rebuild their credit to qualify for traditional financing down the road. In fact, an inaugural survey of 1,015 consumers across the country published by Oak Motors on Aug. 15 revealed that 32% of consumers avoided applying for an auto loan due to concerns about their credit score this year.  Hear more about Oak Motor’s credit survey results, market trends and the state of the buy here, pay here market in this week’s podcast. This episode is sponsored by The Work Number by Equifax. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here. 

As fraudulent activity picks up across the automotive industry, floorplan financiers are also seeing an uptick in dealers disappearing with vehicles or submitting false documents.  Floorplan lenders such as NextGear Capital and Westlake Flooring Services in recent months saw a rise in the volume of fraud and more dealers defaulting on their lines of credit.  Supporting dealers is a top priority for Ford Credit Chief Financial Officer and Vice President of Strategy Eliane Okamura in the second half of the year, alongside portfolio health and technology advancement, she told Auto Finance News.  Meanwhile, credit unions have gained market share as they lean back into auto as consumer demand for used vehicles increases amid affordability challenges. In powersports, motorcycle dealers saw mixed sales in July as lenders tightened standards, with dealers also scaling back supply. Prices remain high across the industry, with the average selling price of boats up 10% in July. In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across fraud, affordability, sales and powersports for the week ended Aug. 22. 

Nonbank auto lenders may soon have a reason to celebrate, following a proposed rule change by the Consumer Financial Protection Bureau to how it defines larger participants of the auto market. On Aug. 7, the bureau filed an advanced notice of proposed rulemaking to change the definition of a larger participant in auto to nonbank entities with up to 1.1 million aggregate annual originations, an increase from 10,000. This followed the CFPB’s July 14 motion filed with the Office of Management and Budget which would rule on the request. The change, if approved, would reduce the number of financiers considered larger participants to five from 63, according to the notice. Traditional lenders and nonbank entities would still be subject to state laws even if they are no longer under CFPB jurisdiction.  While this unfolds, lenders are also working to seize opportunities in the market.  Auto lenders are continuing to lean into refinance programs on the heels of stabilizing interest rates and consumers’ search for affordability and better loan terms. Subprime lender Arivo Acceptance Chief Executive Landon Starr told Auto Finance News that the company is ramping up its refinance program with a goal of $60 million in average monthly origination volume. In fact, TransUnion estimates 18 million consumers, or 23% of borrowers with open auto loans, have interest rates that exceed the average APR in the industry.  Also, average vehicle transaction prices jumped 5.2% year over year in the second quarter to $31,216, according to an Edmunds report published Aug. 12. In this episode of the “Weekly Wrap,” Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 15.