The Auto Finance Roadmap Auto Finance News

Second-quarter bank earnings continue to point to mixed loan production volume and a rise in leasing spurred by EVs. 
U.S. Bank originated $1.9 billion in Q2, up 21.5% year over year while outstandings fell 30.6% YoY to $8 billion. PNC Financial’s auto outstandings dipped 1.6% YoY to $14.8 billion, and Citizens’ auto book continued to run off. Ally Financial originated $639 million in battery EV and hybrid leases during Q2.

Second-quarter bank earnings kicked off this week and showed a continued slowdown in auto originations compared with a year ago. Chase Auto’s originations declined 10% year over year to $10.8 billion and Wells Fargo Auto’s originations decreased 22.9% YoY to $3.7 billion. 
Powersports sales slowed in June. 

June marked mixed vehicle sales and an uptick in incentives ahead of the July Fourth holiday, while the industry continues to keep an eye on impacts from cyberattacks that halted dealer operations.  

Higher costs for everyday expenses such as gas, groceries and vehicle insurance have prompted many consumers to turn to credit cards, with rising expenses making it harder for consumers buried in debt to qualify for auto loans.

Point-of-sale financing as an alternative payment method is a growing opportunity for lenders, technology company Pagaya’s President Sanjiv Das says on this episode of “The Buzz” podcast, shared to The Roadmap. According to auto lender and Pagaya partner Ally Financial, POS financing is expected to reach a value of more than $81 billion by 2030.

Car dealerships are leaning on manual processes following consecutive cyberattacks against software provider CDK Global last week. 
In powersports, RV and marine manufacturer Winnebago Industries’ promotional liabilities decreased 26.4% year over year as demand for RVs was sluggish during Q3.