January 2025
We’re excited to bring you our first issue of AFG Driving Insights, an email newsletter designed to keep you informed about the latest trends in vehicle financing, provide educational resources on residual based financing, and share updates on Auto Financial Group’s programs. In a challenging auto finance market, where affordability and negative equity are key concerns, we’re here to equip your institution with the tools and insights needed to help your borrowers—and your financial institution—thrive.
Auto Finance Trends
New car prices rise four months in a row to near-record high, 1/16/2025
“Buyers now need 38.2 weeks of median income to afford a new vehicle.” Affordability continues to be a huge problem in vehicle financing. If your institution wants to provide a lower payment option to borrowers, the AFG programs can help.
“1 in 4 consumers with negative equity owe more than $10,000 on their auto loans.” This is a staggering number. If your borrowers need more affordable monthly payments to help them stay off or get off the negative equity treadmill, consider AFG’s programs.
New car affordability dips as rising prices outpace discounts 12/17/2024
Despite some improvement in incentives and lower loan rates, new car affordability continues to worsen as rising vehicle prices outpace discounts and interest rate reductions. The disconnect between rising car prices and limited affordability signals that many consumers may be stretching their budgets to meet higher monthly payments, which could pose future risks for auto loan performance.
Auto Partner Experience
Does AFG help with affordability and negative equity? Don’t take our word for it, hear from our current partners and how the program has helped their borrowers as well as their institution.
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.
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.
