July 2025
Affordability is no longer optional. It’s the new bottom line.
For millions of borrowers, the math simply isn’t working anymore. Car ownership costs are at an all-time high—averaging over $12,000 per year—and loan payments continue to rise. Meanwhile, financial institutions are feeling the squeeze as members walk away from vehicle financing conversations altogether.
This month’s issue of AFG’s Driving Insights dives into:
- the headlines behind the affordability crisis
- how financial institutions like yours are using AFG’s residual-based financing to change the conversation—offering relief to borrowers and returns to your bottom line.
Keep reading to explore real success stories, payment comparisons, and on-demand resources designed to help your institution learn more about a financing option designed to help you grow in today’s challenging market.
Auto Finance Trends
🚘 High Costs Have Ended America’s Love Affair With Cars
Owning and maintaining a modern vehicle now costs over $12k/year, with insurance and repairs squeezing borrower budgets tighter than ever.
🚘 The recession no one is talking about
“For millions, owning a car is no longer affordable. The average used vehicle loan payment is now $520 per month, while new car loans average $737 per month.”
AFG’s programs offer borrowers relief with monthly payments 30–45% lower than traditional loans.
Events
🎥 AFG hosted two webinars on affordable vehicle financing and basics of residual based financing recently
You can still watch the recordings.
You can also still watch the recording of our popular webinar, “Increase ROI with Residual Based Financing”
Watch here.
🏢 ACU Lending Council Conference
November 2-5
Anaheim, CA
AFG will be in attendance at this event. If you’d like to learn more about our programs, you can make an appointment with an AFG representative.
Click here to schedule it.
AFG Partner Experience
Why did Trius Federal Credit Union sign on to AFG’s program? In one word: affordability.
The VP of Lending explains in this video.
Spotlight on Affordability
Affordability is a critical concern for many borrowers in a highly fluctuating vehicle market. AFG will highlight a vehicle each month that showcases how the AFG walk-away balloon and vehicle leasing programs offer a more affordable payment compared to conventional financing.
