Podcast: Diversification in funding drives originations
Listen as AFN editor breaks down top stories from past week
Diversification across public and private funding sources is key to driving origination growth for auto lenders as the cost of funds fluctuates and investors look to put an abundance of capital to work in auto finance.
Auto Finance News’ March 11 webinar “Funding Strategies: From Warehousing to Private to ABS” shed light on interest from private investors in auto and the amount of money that is available to originators.
Insurance companies are large players in backing private investment in auto, especially as lenders consider diversifying their funding sources to include asset managers alongside banks and public capital markets.
Meanwhile, late-stage delinquencies rose in the fourth quarter but the pace of increase is stabilizing compared to large upticks in 2022 and 2023.
As tax refund season approaches, affordability and credit access improved in February while average transaction prices saw a slight uptick.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses the top takeaways from last week’s funding webinar along with other top stories for the week ended March 14.
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This episode is sponsored by Earnix.
Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here.
Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.
This is our weekly wrap and what happened in auto finance for the week ending March 14, 2025. Before we begin, I’d like to take a moment to thank Ernie’s for sponsoring this episode. Last week we hosted the webinar funding strategies from warehousing to private to ABS which shed light on interest from private investors and auto.
And the fact that there is quite a lot of money that is available to originators, investors need to put capital to work and auto has long been an attractive opportunity. We’re seeing that play out not only in strong asset backed securitization issuance so far this year, but also in private credit deals such as warehouse lines of credit and private securitizations. Insurance companies are large players in backing private investment in auto. They typically provide funds to asset management firms who invest. In private deals with auto originators. Strong investor sentiment is great for auto lenders who want to diversify their funding sources in order to get the best pricing and ensure they can meet their growth targets. So learn more about these dynamics. Make sure you watch the full episode, which is now available on demand on our website. This week also shed light on 4th quarter trends across credit performance. While the percentage of auto loan balances 60 plus days past due ticked up four basis points. Year over year to 1.16% in Q4, the rate of increase is stabilizing compared to large jumps in 2022 and 2023. By comparison, 60 plus day delinquencies rose 13 basis points year over year in Q 4/20/23 and 27 basis points year over year in Q 4/20/22 as according to data from Experian as tax refund season approaches, affordability and credit access also improved in February, while average transaction prices saw slight. Uptick to breakdown some recent data.
The Dealertrack Credit availability index rose to 95.9 in February, which is a 3% year over year. The Moody’s Analytics Vehicle Affordability Index, which measures weeks of income needed to purchase a new light vehicle set at 37.2 in February compared with. 37.7 in January and 39 a year ago. A new vehicle, average transaction prices in February rose 1% year over year to just over 48,000. To come this week, we’ll hear from executives in our industry and we’ll have daily coverage from CBA live. James is there right now. So as a reminder, our registration is open for auto finance Summit E taking place May 12 through 14th in Nashville. Visit autofinance dot live to register, go to some highlights from the past week and that will do it for today’s episode. Thanks again to our next for sponsoring this episode. If you’re struggling with pricing or decisioning solutions, earnix is introducing lending plus. A combined pricing analytics and credit decisioning platform. That gives auto lenders a big picture view of portfolio performance without reliance on it. Thanks for joining us here on the road map and be sure to follow us on X and LinkedIn and we will show you online at auto Finance News net in here next time.
