Auto leaders dive into affordability, funding diversification, credit performance

The higher cost of living is exacerbating affordability concerns and prompting auto lenders to take a close look at rising delinquencies, asset pricing and innovative programs to get consumers into vehicles.

The inaugural Auto Finance Capital Summit in Nashville, Tenn., highlighted lenders’ reliance on diversified funding sources across asset-backed securitization (ABS), warehouse lending and private credit.

Pagaya Technologies, for example, is increasing issuance in the auto ABS market as the private credit markets face increased volatility amid rising losses and a call for more transparency.

Losses also rose across securitized nonprime auto loans as issuers continue to navigate bifurcation between subprime and prime credit performance.

Market conditions are prompting lenders such as Global Lending Services and Stellantis Financial Services to reprice assets more frequently. At the same time, affordability challenges could prompt a slowdown in vehicles sales, contributing to a decline in retail auto ABS issuance in 2026.

Affordability and credit performance also were key topics of discussion at Auto Finance Summit East 2026, which took place May 11-13 in Nashville.

Lenders including Volkswagen Financial Services are looking at used-car leasing to offset high car prices, while others are considering extending lease offers to certified pre-owned vehicles.

The high costs of ownership are going to be prevalent issues for the foreseeable future as gas prices are expected to remain elevated through at least July.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Senior Associate Editor Aidan Bush recap top stories and takeaways from the spring events.

Subscribe to “The Roadmap Podcast” on  iTunes or Spotify or download the episode. 

Find more coverage from Auto Finance Capital Summit here and find more coverage from Auto Finance Summit East 2026 here.