August 2026
Auto Finance Trends
🚘 Members Are Borrowing Differently In 2026
Credit unions are losing ground in auto lending just as members need affordability most. Auto loan balances have declined for 8 straight quarters, and auto loans now make up just 27.8% of credit union loan portfolios, down from 35.2% in 2018.
Meanwhile, members are holding onto vehicles longer. New car prices sit near $50,000, 74% of consumers say a new car is unaffordable, and nearly 1 in 5 buyers now have payments over $1,000.
As members pull back from major purchases, the institutions that offer real affordability solutions will be the ones that stay in the conversation.
{{{dynamic_content_836}}}Â gives your credit union or dealership a way to compete without stretching terms past 72 months: lower monthly payments, shorter effective terms, and a walk-away option at maturity that helps members avoid or exit negative equity.
Record new-car prices are reshaping how consumers shop. According to Catalyst IQ’s Q2 2026 State of the Industry Report, buyers are shifting toward used vehicles as a more affordable alternative, and used cars are turning faster than they have in nearly three years. Affordability, fuel-efficiency, and value are driving purchase decisions. People still need cars. They just need a smarter way to pay for them.
That is where {{{dynamic_content_836}}}Â comes in. The program offers lower monthly payments on used vehicles up to five years old, often as much as 40% below conventional financing.
When buyers are focused on affordability, having a payment-driven solution for both new and pre-owned vehicles keeps the deal moving and keeps the loan in-house.
Events
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.
Sync1 Systems Lendtopia
September 21–23, 2026
Indianapolis, IN
Open Lending’s Executive Lending Roundtable
October 14-16
Austin, TX
ACU Lending Council Conference
November 3-6, 2026
Las Vegas, NV
🎥 You can also register for our upcoming webinar: “Residual-Based Financing: Every Question Answered, Real Client Examples Shared”. Register Now.
AFG Partner Experience
To keep payments within reach, more borrowers are stretching into 84-month terms, and roughly 30% of trade-ins are now underwater, with negative equity balances up more than 40% since 2021.
For lenders, that creates a familiar tension: extend terms to win the deal, or hold the line on underwriting and risk losing the member to a competitor willing to go longer.
But some institutions are finding a third path with the AFG Program. Toni Lynn, VP of Lending at Hudson River Community Credit Union, recently shared how her team is approaching the problem without compromising portfolio standards.
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.
