September 2025
Auto Finance Trends
🚘 Auto loan refinancing jumps 69% as borrowers lock in lower rates — study
Refinancing is on the rise. A recent study shows auto loan refinancing jumped 69% as borrowers chase lower rates.
Dealers worry this slows sales: not with {{{dynamic_content_836}}}. It shortens terms while keeping payments affordable. Win-win-win for dealers, FIs & borrowers.
🚘 Auto lenders drive used car loan-to-value ratios to new peaks
Borrowers are increasingly rolling negative equity into their used-car loans, a trend that raises loan-to-value (LTV) ratios to risky levels. In Q2 2025, 53% of used-vehicle loans exceeded 120% LTV (up from 38% in Q2 2022) meaning borrowers owe significantly more than their vehicles are worth. This escalates risk not only for the financial institution but also for the borrower.
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“
🏢 Open Lending ELR
Austin, TX
September 21 – 24
ACU Lending Council Conference
November 2-5
Anaheim, CA
AFG will be in attendance at these events. 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
Timberland FCU’s VP of Member Relations gives a first-hand perspective on how the AFG program helps their borrowers.
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.
