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.

Powersports dealers are introducing financing discussions earlier in the buying process as affordability concerns and economic uncertainty shape consumer behavior during the industry’s peak selling season.

May is one of the most important sales periods for powersports dealers as warmer weather drives demand for motorcycles, ATVs and side-by-sides, Synchrony Outdoors Senior Vice President and General Manager Susan Medrano told Auto Finance News during a special episode of “The Roadmap” podcast.

“It’s important because that buying window for peak season is so narrow,” she said. “If the consumer doesn’t purchase during that window, they may not purchase till next year.”

This year, affordability pressures are changing how consumers approach purchases, with about 81% of shoppers focused on financing options when making large purchases, Medrano said, citing Synchrony’s 2025 Major Purchase Study,

Modern buying trends

Buyers also are researching financing options before visiting dealerships and are increasingly focused on monthly payments and loan terms, Medrano said.

“The financing starts much sooner in the process,” she said. “Consumers are educating themselves before they ever get there.”

That has spurred dealers to discuss financing on the showroom floor instead of waiting until customers reach the finance office, Medrano said.

“If it's the monthly payment, for example, they could talk about the different terms that would be available, whether it's 36 months or it's 84 months, and the difference that makes to the consumer,” she said. “The same with total ticket price.”

Those conversations allow dealers to tailor promotional APRs, repayment terms and add-ons to that customer, Medrano said.

Flexible financing

Flexible financing is increasingly important as dealers work to convert shoppers during the compressed seasonal sales window, Medrano said.

“The worst thing that can happen is you get a customer to a finance desk and then they get sticker shock over the payment,” she said.

Synchrony also encourages digital applications and mobile approval tools that allow customers to apply for financing before or during dealership visits, Medrano said.

“We’re trying to make the buying process as frictionless as possible,” she said.

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