Inside Lendbuzz’s plan to boost originations by 20%

AI-driven auto lender Lendbuzz is projecting a rise in originations in 2026 as it expands its near-prime consumer base and leans on alternative data for underwriting. Lendbuzz is looking to grow originations by about 20% year over year after a jump of about 40% YoY to approximately $2.2 billion in 2025, co-founder and Chief Executive Amitay Kalmar told Auto Finance News . [caption id="attachment_58329513" align="alignleft" width="146"] Amitay Kalmar[/caption] The Boston-based financier is supporting growth by leveraging cash-flow-based underwriting amid affordability constraints , Kalmar said, noting Lendbuzz is being mindful of longer-term loans. “We're trying not to extend loan terms in order to mitigate [affordability concerns] because eventually it's not the best answer for the consumer,” he said. “Ideally, we'll see some shift in consumer [demand] to lower-priced vehicles. “We are seeing dealerships that are starting to have lower-priced inventory to mitigate some of the affordability issues and help consumers [who] are looking for a $400 to $500 monthly payment achieve that goal, but there is still high-priced inventory that might not be affordable for many,” he said. The average used-car monthly payment sat at $537 in the fourth quarter of 2025 compared with $528 per month in 2024, according to Experian ’s latest State of the Automotive Finance Market report. For a new car, the average payment was $767 a month in Q4 2025 compared with $746 in Q4 2024. Experian: Average used-vehicle monthly payment Q4 2025 [caption id="attachment_58360204" align="aligncenter" width="1414"] (Courtesy/Experian)[/caption] Shift toward longer loans As a result of high payments, overall consumer demand for longer-term loans has risen and is contributing to a shift in Lendbuzz’s portfolio mix to a smaller percentage of terms in the 48-month to 60-month range and a larger percentage of loans with original terms of 66 months or 72 months, Kalmar said. The maximum auto loan Lendbuzz offers is 72 months. “We're trying not to go beyond 72, but the average term continues to creep up,” he said. “We’d prefer [consumers] in a lower-priced model, slightly smaller car, at 60 or 66 months rather than buying a bigger car at 72 or 84 [months].” “We're trying not to go beyond 72, but the average term continues to creep up," -- Amitay Kalmar, Lendbuzz In fact, Lendbuzz's weighted average (WA) original term as of the first quarter of 2025 was 68 months, up from 65 months from 2022 to 2024 and 53 months in 2020, according to a Jan. 30 Kroll Bond Rating Agency presale report of the lender’s most recent auto asset-backed securitization (ABS) transaction. Lendbuzz issued a $246 million subprime auto ABS deal on Jan. 21, according to CreditFlow , which monitors securities. In that deal, 65.4% of the loans in the collateral pool had original terms longer than 60 months, with the WA original term at 67.5 months, according to the presale. Growth in near prime Lendbuzz also continues to grow the percentage of its overall portfolio tied to near-prime consumers with FICO scores between 580 and 720, Kalmar said. Near prime as of March 2026 makes up about 40% of Lendbuzz’s originations mix, with the goal to grow that to 60%, he said. Lendbuzz also targets subprime consumers and customers with thin credit files, according to KBRA. Offering more attractive programs to consumers “has been a focus in the past 24 months and remains a focus ... [as well as] removing stipulations or making it easier for dealerships to close and fund the loan,” Kalmar said. As of Q3 2025, Lendbuzz had a serviced portfolio of about $3.2 billion, according to the KBRA presale report. Originations in Q3 2025 totaled $596.5 million. In other news, Lendbuzz in September filed an initial public offering with the SEC . That process is pending, Kalmar said. “The market has been very volatile and challenging,” he said. “We're being patient [and] we'll follow the market, and when it’s the right time, we'll pull the trigger.” 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 .

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Inside Lendbuzz’s plan to boost originations by 20%

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