Auto industry eyes tariffs, credit performance
Auto lenders are keeping an eye on loan production, credit performance and vehicle prices as tariffs loom. Subprime lender Credit Acceptance Corp.’s originations ticked up 0.3% year over year in the fourth quarter to 78,911 loan assignments as the financier grew its number of active dealers. Negative equity and rising delinquencies continue to be a concern for auto lenders as consumers navigate changing vehicle values and inflationary pressures. Meanwhile, looming tariffs against Canada and Mexico are expected to drive car prices higher, likely exacerbating dealers’ challenges related to supply, profit margins and sales. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris and associate editors Ashley Savage and James Van Bramer discuss nationwide trends affecting the automotive industry and key updates for the week ended Jan. 31.