March 2026
Auto Finance Trends
🚘 More Than 1 in 5 New Car Buyers in the U.S. Are Taking Out Loans of 84 Months or Longer
“As per usual, the majority of folks purchasing new cars these days are financing them, but the length and rate of these loans has skyrocketed. The average payment for new-vehicle buyers through December 2025 was set at $722, a 2.4 percent increase from 2024— and 20.8 percent of new vehicles financed had a loan term of 84 months or more.”
🚘 February auto sales hit 15.8M SAAR as affordability pressures grow
😱 “To manage higher payments, more buyers are turning to longer loan terms. Loans with terms of 84 months are expected to represent 12.7% of financed sales in February, up from 7.7% in February 2025.”
Offer your borrowers a lower payment without extending terms beyond 72 months with AFG’s residual based financing programs instead.
Events
🏢 NACUSO
April 27 -30
Lake Buena Vista, FL
CU*South Visionary Conference
May 4-6
Sandestin, FL
MeridianLink Live
May 11-14
San Diego, CA
Lending Tech Live
June 2-4
Palm Desert, CA
AFG will be in attendance at this 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.
🎥 You can also still watch the recording of our webinar, “Understanding Residual Based Financing: From Basics to Benefits”
AFG Partner Experience
AFG’s residual based financing programs give credit unions another way to help members manage vehicle costs. An AFG partner recently shared how the program has helped borrowers secure lower payments while maintaining flexible loan options.
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.
