Affordability, repos, credit performance top concerns into 2026

Affordability, repos, credit performance top concerns into 2026

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.

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Episoder(335)

Chase Auto head of pricing, credit strategy says granular decisioning key

Chase Auto head of pricing, credit strategy says granular decisioning key

Auto lenders must strengthen fraud controls, improve operational processes and lean more into precise, data-based decision-making as they look toward 2027, Manish Chhabra, head of auto pricing and cre...

15 Sep 12min

GM Financial's Kyle Birch reflects on captive build-out, career ahead of retirement

GM Financial's Kyle Birch reflects on captive build-out, career ahead of retirement

Communication is key to GM Financial's continued success under new leadership, according to retiring GM Financial President of North America Operations Kyle Birch. "There'll always be challenges for l...

19 Aug 18min

Arivo Acceptance eyes increased auto ABS cadence

Arivo Acceptance eyes increased auto ABS cadence

The auto asset-backed securitization market remains resilient as a funding outlet for many issuers and originators.  “It's an important source of capital for us,” Michael Gustafson, chief financial of...

10 Aug 19min

Ally Financial, Capital One, Huntington Bank auto originations mixed

Ally Financial, Capital One, Huntington Bank auto originations mixed

Ally Financial, Capital One and Huntington Bank posted mixed results in the second quarter for auto originations and credit performance.  Ally Financial’s auto originations rose 20.9% year over year i...

27 Jul 7min

Wells Fargo Auto, Chase Auto originations jump in Q2

Wells Fargo Auto, Chase Auto originations jump in Q2

National and regional bank second-quarter earnings point to mixed performance as larger banks lean into auto production while regional banks held steady or scaled back amid market volatility.  Wells F...

20 Jul 6min

Subaru Motors Finance to target first-time buyers, expand credit access

Subaru Motors Finance to target first-time buyers, expand credit access

Subaru Motors Finance plans to expand its underwriting to attract more first-time buyers, Managing Director Michael Cottone tells Auto Finance News in the latest episode of “The Auto Finance Roadmap P...

13 Jul 23min

BMW Financial’s lease penetration normalizes post-EV tax credit

BMW Financial’s lease penetration normalizes post-EV tax credit

BMW Financial Services’ lease penetration has normalized following the elimination of the federal electric vehicle tax credit, says Ole Jensen, chief executive and president of the captive in North Am...

6 Jul 23min

Rising insurance costs add to affordability woes 

Rising insurance costs add to affordability woes 

Car buyers are facing a tough market as rising insurance costs add to vehicle ownership expenses and lenders are mindful of high loan-to-value ratios.  The national six-month auto insurance premium ro...

29 Jun 11min

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