Speed, F&I profitability ‘top of mind’ for dealer-lender relations, captives say

Captives are eyeing higher-profit finance and insurance products and faster lending times to strengthen relationships with dealer networks. Lenders can improve their dealer relationships by increasing F&I profits for franchised dealerships, Hyundai Capital America Vice President of Sales Joanna Dean said during a session at the recent Auto Finance Summit East in Nashville, Tenn. “F&I profitability is top of mind as we’re seeing the market normalize,” she said. “Those captives and those lenders who can figure out how to … be that one-stop shop for our dealers … [that] is going to be really important.” Hyundai Capital America was the seventh-largest auto lender by outstandings at yearend 2025, with a portfolio totaling $80.1 billion, according to the latest Big Wheels ranking data . Hyundai’s vehicle sales dipped 1.7% year over year in April to 80,157 units, according to its May 1 release. While many retailers reported year-over-year declines in F&I revenue in the first quarter, F&I gross profit per unit (GPU) rose YoY for most. Sonic Automotive reported the biggest Q1 jump in F&I GPU, up 9.5% YoY to $2,670 , according to its April 30 release. Captives that offer the “full suite of support” for dealers — through F&I products, service retention and incentives — empower dealer success and increase consumer loyalty, Dean noted. Lender-dealer conflicts may occur faster with captives, which are more entrenched with their dealer networks and interact more often compared with indirect lending partners, Todd Voorhies , director of consumer credit and funding at Nissan Motor Acceptance Co. , said during the session. To foster stronger relationships and speed up transactions, the captive and its dealers need “one voice,” he said, meaning both parties receive consistent: Communications; Program execution; and Training. “It’s having that right team, all marching with the same one voice,” he said. “Dealers do not just see it, they are going to feel it, and they will notice inconsistency.” NMAC’s outstandings fell by 3.8% YoY to $31.8 billion as of yearend 2025, making the captive the 15th-largest auto lender by that measure, according to Big Wheels. Speed versus friction Lenders are also continuing to shorten dealer funding and decisioning times. Hyundai Capital America funds more than half of the volume from its dealers the same day, Dean said. “Speed of funding is key” for dealer relationships, she said. Wells Fargo , too, has “overwhelmingly automated decisioning” through investments in automation that facilitate same-day funding, Head of Auto Originations Greg Neubecker said at the session, without providing specifics. However, lenders investing in automated funding need also to invest in alternative data, AI and machine learning to mitigate fraud risks associated with faster transactions, Neubecker said. “Really understand your credit losses versus your fraud losses, because otherwise your models are going to be confusing the two,” he said. Wells Fargo’s auto originations jumped 110.9% YoY in Q1 , totaling $9.7 billion, according to the company’s April 14 earnings supplement. Wells Fargo was the ninth-largest auto lender by outstandings at yearend 2025, according to Big Wheels. Lenders need to differentiate between “right speed” — fast, informed transactions — and “raw speed,” where lenders blindly automate and approve transactions without regard for risk, NMAC’s Voorhies said. “Speed with incomplete information does nothing for anybody.” — Todd Voorhies, Nissan Motor Acceptance Co. “Speed with incomplete information does nothing for anybody,” he said. “It’s going to [tick] off the customer [and] the dealer; it’s never going to be a pleasant exchange.” Find more coverage from Auto Finance Summit East 2026 here .

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Speed, F&I profitability ‘top of mind’ for dealer-lender relations, captives say

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