NASHVILLE — Changing tariff policies, a pull-ahead in new-vehicle demand in recent months and a potential for worsened credit performance all contribute to the uncertainty underpinning auto lenders’ strategies headed into the rest of 2025 and early 2026.
When Auto Finance Summit East 2025 kicks off today at JW Mariott in Nashville, Tenn., it will bring together industry leaders, fintechs, auto lenders and dealers to discuss this and more. In addition to auto tariffs, issues like affordability, artificial intelligence and digital retailing against a market defined by fluctuating vehicle values and mixed consumer demand will also be addressed.
Auto tariffs spur uncertainty
The 25% tariff on imported vehicles and a separate 25% tariff on imported auto parts has spurred uncertainty surrounding where vehicle prices are headed once manufacturers begin factoring the levies in vehicle prices.
That price uncertainty contributed to a pull-ahead in vehicle buying in March and April, contributing to a seasonally adjusted annualized rate for new car sales at 17.3 million units in April, up 7.7% year over year, according to the National Automobile Dealers Association. New light-vehicle inventory was down 4.1% YoY in April to 2.6 million units.
Auto stocks’ performance has been mixed in tandem with improved vehicle sales but uncertainty regarding potential price increases and demand.
New-vehicle prices rise, credit access flat
Even without tariffs, the affordability of vehicles is a concern with the average new-vehicle price at up 1.1% YoY and 2.5% month over month in April at $48,699, according to Kelley Blue Book data published today.
Auto credit access in April was also flat as approval rates increased, subprime share dipped, negative equity share ticked up and the volume of longer-term loans rose, according to Cox Automotive data today.
The Dealertrack Credit Availability Index landed at 95.7 in April, up 0.7% YoY but down 0.7% MoM.
Dealertrack Credit Availability Index
Credit access loosened the most across non-captive new-car sales and the least across independent used-vehicle sales, according to Cox. Credit unions loosened credit access the most compared to last year, while auto-focused finance companies loosened credit the least among all lender types.
AI adoption ramps up
Against the backdrop of uncertainty in the market, auto finance companies are leaning on machine learning and AI to improve underwriting, fight fraud and address customer needs 24/7. On the heels of increased use of generative AI in auto finance, some financiers are building out their technology stacks to include more personalized interactions through AI agents.
The demo showcase at AFS East is expected to highlight how lending technology is endeavoring to make operations more efficient, speed funding and answer inquiries in what is becoming a 24-hour lending cycle.
Auto Finance Summit East 2025 takes place through May 14 at the JW Marriott Nashville, featuring fireside chats with Santander Consumer USA and Chase Auto. Keep up with the latest news from Auto Finance Summit East here.
