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.