SCUSA’s Jotanovic looks to capture pent-up demand in 2025

Santander Consumer USA aims to capitalize on a rise in auto demand in 2025 by using its flexibility as a full-spectrum lender and optimizing its use of AI and automation. [caption id="" align="alignright" width="300"] (Courtesy/Santander Consumer USA)[/caption] A Jan. 23 survey conducted by Santander Holdings USA indicated strong auto demand in 2025 among middle-income consumers, with one in three planning to buy a vehicle. Many consumers are preparing for their purchase, with 65% having started researching , and 46% having visited a dealership, according to the survey, based on data collected from Dec. 5 to Dec. 8. Santander surveyed 2,213 U.S. banking and financial services customers , ages 18 to 76. Santander Consumer USA (SCUSA) expects to see pent-up demand continue in 2025 and vehicle sales to rebound as the economy strengthens, Betty Jotanovic , president of Chrysler Capital and auto relationships at SCUSA, told Auto Finance News . Jotanovic joined Santander in 2018 and took on her current role in 2023. During her tenure, she has secured exclusive lending partnerships with INEOS Automotive and Lotus Cars . Additionally, SCUSA became LendingClub ’s primary auto refinance loan servicer. SCUSA ranked eighth in auto lending in 2023 with $57.8 billion in outstandings, according to the latest Big Wheels r ankings analysis . Jotanovic spoke with Auto Finance News about her plans to use Santander’s full-spectrum lending flexibility and digital tools to meet rising auto demand in 2025. What follows is an edited version of the conversation. Auto Finance News : How do you plan to capture increased demand in 2025? Betty Jotanovic : W e continue to stay the course throughout the cycle. We don't want to do anything aggressive. We are a full - spectrum lender, so we want to make sure that we're ensuring the customer's ability to repay. Our strategy is to differentiate ourselves through our digital tools, our competitive rates, as well as deepening relationships with our dealers that we do business with, but nothing aggressive. The market will be the market. The cycle will be the cycle. We don't want to do anything unnatural. AFN : How have rate cuts influenced your view of the market in light of increased demand? BJ : In terms of how it impacts our originations and strategy, it largely depends on the competitive landscape. Typically, when there is a rate cut, the competition follows suit. While we might expect rates to drop, it doesn't mean we’ll benefit from better returns. The market is dynamic, and when rates are cut, competitors adjust as well. This was evident when rates were rising, rates went up across the industry, and as they decrease, we’ll see the same trend. Generally, this results in lower rates being passed on to the consumer. AFN : How is SCUSA differentiating itself through digital tools? BJ : Regarding AI, it's a balancing act for us because auto is a relationship-based business. Our decisioning is fully automated. Our tools handle personal information gathering for Know Your Customer requirements, pricing and modeling. Given that auto is relationship-driven, we also have a large team of underwriters available to help dealers structure deals, adjust terms or modify collateral. While we use automation and offer self-service tools for dealers, we understand that they might not always be familiar with our programs. Our goal is to strike the right balance between automation and providing quick, efficient responses. Speed is critical, but we also want to offer a hands-on approach for dealers who prefer to speak with an agent or buyer. In terms of back-office processes, we see AI playing a larger role . However, we aim to take a risk-based approach. If a process is binary, we can build automation to leverage technology and improve efficiency. For higher-risk processes or those requiring discretion, we’ll rely more on agents. AFN : How are you growing expanded small-business vehicle financing options within your dealer network? BJ : We continue to focus on this channel. It’s been a journey for us. We began with a new and enhanced scorecard, which was Step 1. Then, we expanded our small business auto channel, not only to our OEM dealer partners but also to all of our Santander dealers through Dealertrack and Route One . The final step was establishing a flow with our bank partner, Santander Bank North America , so that loans qualifying for their buy box could be transferred to them. This process involved several stages: updating the scorecard, expanding eligibility to more dealers and enabling the flow of accounts to our bank partner to leverage their cost of funds. With the groundwork in place, we continue to work closely with our dealers. Our sales team has been active in the market, ensuring dealers are aware of the product and focused on growing the portfolio. AFN : What is your strategy to navigate shifting market dynamics, especially as inventory grows? BJ : As a full-spectrum lender with OEM partners, our strategy varies depending on the dealer we’re working with. We have several captive relationships. In those cases, we collaborate with OEMs to create incentive programs targeting specific vehicles. We customize our approach by understanding where OEMs need help moving inventory and tailor programs for those targeted vehicles. We’re also a full-spectrum lender, offering financing for both new and used vehicles, retail and lease, as well as prime and non - prime options. Our strategy depends on the manufacturer and whether we have a captive relationship or offer subvention. This approach differs from dealers that focus more on used or subprime vehicles. Ultimately, we handle all aspects of financing — new, used, prime, non - prime — making us unique as a finance company, a bank , and a captive. AFN : What’s your approach to the EV market this year? BJ : EVs are particularly interesting given the change in administration. Like the rest of the industry, we’re closely monitoring the impact of tax credits. Tax credits have been crucial to the lease market, especially for EVs. We’ll continue to track developments, and if there are any changes, we’ll work with our OEM partners to adjust our strategy and how we market those leases. Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here .

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