February 2025
This February, we’re spotlighting the ongoing affordability challenges in the auto market, featuring recent media coverage on the issue. Plus, hear directly from two AFG credit union partners as they share firsthand accounts of how inflation and rising vehicle prices have impacted their members—and how the AFG program has helped them navigate these challenges.
Auto Finance Trends
Automakers face affordability challenge in 2025
“Combined with minimally receding interest rates, inflation and other economic concerns, affordability will remain an obstacle for many vehicle shoppers — but delayed purchases during the pandemic also mean many consumers are now in need of a car.”
▶️ There’s an opportunity here for lenders who offer a lower payment vehicle financing option.
Auto loan availability is the strongest its been in nearly 2 years
Auto loan availability is at its highest in nearly two years, but rising rates and tighter credit conditions are making financing more expensive for consumers.
▶️ Access and affordability are still an obstacle for many borrowers. AFG can help with lower payments so your borrowers can afford a better, more reliable vehicle.
AFG Partner Experience
Does AFG help with affordability and negative equity? Cinfed Credit Union and Northland FCU told us this month how the program helped their members in 2024 and how it also benefits the credit union. A win-win proposition.
Events
💻 AFG is hosting an educational webinar, Affordable Vehicle Financing in a Negative Equity Environment, February 26 at 2pm Eastern/1pm Central. Click here to register.
🏢 AFG will be exhibiting at the Governmental Affairs Conference in Washington DC. 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 will host its annual User Conference in Austin, TX, May 6-8. Click here to register.
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.
