Auto dealers and lenders are looking to new technologies and ventures to grow operations as the retail auto market faces uncertainty, especially around used vehicles and EVs, in 2026.

Dealer captive financier AutoNation Finance’s originations rose 66% year over year in 2025. Meanwhile, the retailer’s full-year finance and insurance revenue increased 7.7% YoY to $1.5 billion, which represented 5.3% of total revenue and 29.6% of total gross profit, according to the company’s earnings release.

Additionally, AutoNation Finance is looking to improve call center operations with the deployment of Balto AI, while Capital One also aims to boost call centers with AI.

Bank of America is navigating affordability needs of consumer finance customers by expanding its 84-month-term eligibility for auto loans and advancing lending technology, especially in the RV space.

Other lenders are taking different paths to growth:

• Huntington Bank expects its $7.4 billion merger with Cadence Bank to drive auto originations growth; and
• Fellow bank financier Santander acquired U.S.-based Webster Bank for $12.2 billion on Feb. 6.

Dealers and lenders continue various strategies for growth in a complicated auto market, as J.D. Power predicts flat retail sales of 13.6 million units in 2026 and declining retailer profit, while projecting that used-vehicle prices could drop as much as 4% this year.

All of this comes as auto dealers and lenders descended on Las Vegas last week for several key events, including the American Financial Services Association’s Vehicle Finance Conference and Expo, the J.D. Power Auto Summit 2026 and the National Automobile Dealers Association Show. Auto Finance News was on site throughout the events, speaking to lenders, dealers and analysts. Keep an eye out for more news from those event.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Deputy Editor Johnnie Martinez, Senior Editor Truth Headlam and Associate Editor Aidan Bush discuss trends affecting the automotive industry and key updates for the week ended Feb 6.

Auto and powersports financiers mostly reported lower originations and sales for the last quarter as shifting spending patterns by cash-strapped consumers fuel uncertainty.

Lenders that reported fewer sales and loan originations, according to their respective earnings releases, include:

• Credit Acceptance Corp.’s consumer loan assignment volume, down 9.1% year over year in its fourth quarter;
• GM Financial’s Q4 loan lease originations, down 18.7% YoY;
• OneWater Marine’s F&I revenue, declined 5.4% YoY in its fiscal first quarter;
• Tesla’s lease portfolio in Q4, dropped 12% YoY; and
• Volvo’s North American Q4 sales, down 19.6% YoY in Q4.

However, some financiers reported positive results last quarter:

• Group 1 Automotive’s F&I revenue climbed 1.9% YoY;
• Polaris’ Q4 sales climbed 9.5% YoY in Q4; and
• MarineMax’s F&I revenue for its fiscal Q1 climbed 0.9% YoY and total revenue climbed 7.8% YoY.

Meanwhile, mergers and acquisitions in the RV and marine industries are on the rise after a yearslong slowdown following the pandemic.

Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live.

Banks reported growth in auto originations in the fourth quarter as credit performance was mixed.

Auto originations at Ally Financial, Capital One, Chase Auto, U.S. Bank and Wells Fargo increased year over year, according to the banks’ earnings reports.

The increases were:

Ally’s originations rose 4.9% YoY to $10.8 billion;

Capital One’s originations increased 8.5% YoY to $10.2 billion;

Chase Auto’s originations ticked up 1.9% YoY to $10.8 billion;

U.S. Bank’s indirect loan and lease production, mostly comprised of auto loans, grew 2.7% YoY to $1.4 billion; and

Wells Fargo Auto’s originations soared 104% YoY to $10.2 billion

Huntington Bank’s auto originations, however, declined 4.6% YoY to $2.1 billion in Q4.

While Bank of America did not break out auto originations, auto outstandings came in at $55.3 billion, up 0.7% YoY, according to the bank’s earnings supplement.

Meanwhile, auto credit performance was mixed across major banks in Q4. Ally Financial, Capital One, Chase Auto and Wells Fargo reported YoY dips in auto loans delinquent by 30 days or more. Huntington's auto delinquencies rose, while Fifth Third Bank and Truist reported declines in 30- to 89-day auto delinquencies YoY.

PNC Financial’s rate of auto loans 30 to 59 days past due was 0.45%, down 9 basis points (bps) YoY, according to the bank’s earnings supplement.

Bank of America’s net charge-offs across its indirect and direct consumer book, which is largely made up of auto loans, rose 5 bps YoY to 0.22%.

Listen as Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush dive into fourth-quarter earnings and highlight trends across credit performance, auto loan growth and technology updates.

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.