Auto retailers and fintechs mostly reported growth in the third quarter amid mixed October retail sales and some layoffs.
CarMax named David McCreight as its interim president and CEO, replacing Bill Nash, effective Dec. 1. Nash is not retiring, and the shakeup comes as the Richmond, Va.-based retailer’s comparable store used-vehicle retail sales are expected to drop between 8% and 12% year over year in the third quarter of its fiscal 2026, according to CarMax’s Nov. 6 release.
Meanwhile, EV makers Lucid Motors and Rivian saw deliveries jump 46.6% YoY and 31.8% YoY, respectively, in the third quarter ended Sept. 30.
AI-powered lending platform Upstart also saw growth in Q3, with auto loan originations up 357.1% YoY on issuance of 6,705 loans, according to a Nov. 4 Upstart presentation.
However, fintech Open Lending saw certified loan volume drop 13% YoY to 23,880, according to its Nov. 6 release. The fall came as Open Lending prepares to roll out a new credit decisioning platform.
Vroom subsidiary United Auto Credit Corp. also originated $107 million in the third quarter ended Sept. 30, up 7% year over year but down 6.1% quarter over quarter.
The mostly positive Q3 reports came as auto lenders tightened their credit standards. The average new-vehicle auto loan rate increased 19 basis points month over month in October to 9.6%, according to Cox Automotive. This rise is despite a 25-basis-point cut by the Federal Reserve on Oct. 29.
Meanwhile, lender Prestige Financial Services reportedly laid off employees in early November, according to posts from former employees. The reported layoffs come as the subprime market faces challenges in affordability and credit performance.
With these headwinds and elimination of the federal EV tax credit, automakers reported mixed sales in October. Toyota Motor North America saw sales surge 11.8% YoY to 207,910 vehicles, while Mazda’s sales plummeted 32.6% YoY to 25,161 vehicles, according to the companies.
In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses trends across third-quarter earnings, vehicle values and sales for the week ended Nov. 7.
Subscribe to “The Roadmap Podcast” on iTunes or Spotify or download the episode.
This episode is sponsored by The Work Number by Equifax.
Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.
Hello everyone, and welcome to The Roadmap from Auto Finance News, since 1996 the nation’s leading newsletter on automotive lending and leasing. It is Monday, November 10 and I’m Amanda Harris. First, I’d like to thank our sponsor for this week’s podcast – The Work Number by Equifax. Last week we got a glimpse at more company earnings, vehicle sales trends and important business updates. First, CarMax announced that president and chief executive Bill Nash will step down as CEO and a member of the board of directors on Dec. 1 after more than 30 years with the company. CarMax said Bill is not retiring and that the board wanted more hands-on involvement from board member David McCreight and board chair Tom Folliard. Both men have a long-standing history with CarMax and within the retail industry. The changes come as the retailer expects retail sales to be down between 8% and 12% year over year in its third quarter ending Nov. 30 and as it looks to increase profitability and finance penetration of CarMax Auto Finance. CarMax hired a search firm to find a new permanent CEO. Vroom also reported earnings today and United Auto Credit Corp’s originations rose 7% year over year to $107 million. Turning to sales, October brought mixed results, with Toyota Motor North America, Kia America, American Honda, Ford Motor posting an increase while Mazda, Hyundai Motor America and Subaru of America’s sales dropped year over year. EV sales were also mixed across major automakers. EV makers Lucid and Rivian also saw a rise in deliveries during Q3, with Lucid’s up about 47% year over year and Rivian’s up about 32% year over year. Fintechs also reported Q3 earnings last week to mixed results. AI-powered lending platform Upstart’s auto loan originations were up nearly 357% YoY on the issuance of about 6,700 loans. However, fintech Open Lending saw certified loan volume drop 13% YoY to 23,880 units as the financier is preparing to roll out a new credit decisioning platform. In other news, Prestige Financial Services reportedly has laid off a part of its staff amid market challenges, though the scope of the layoffs remains unclear. In the third quarter, auto 60-plus-day delinquencies rose 4 basis points YoY to 1.45%, according to the latest TransUnion data. The rate of growth this quarter was slower compared with the same time period in 2024 and 2023 in a sign of some stability in the market – at least for later-stage delinquencies and losses. Banks and captives saw a rise in delinquencies during the quarter, while independent financiers, who tend to serve subprime consumers, saw a dip in a another sign of potential stabilization in the riskier market segments, though credit performance remains something to watch. This is also true for the asset-backed securitization market, where delinquencies are rising and performance for the subprime sector has been weaker than expected for some issuers. This week, we’ll dive into Pagaya’s third-quarter earnings and market trends across sales, inventory and powersports. As always, thanks for joining us on the roadmap and be sure to follow us on X and LinkedIn. We will see you online at autofinancenews.net and here next time. And again thank you to our sponsor, Equifax. Lenders who leverage income and employment verifications through Equifax’s The Work Number see a 48% higher likelihood of loans closing.
