In the auto finance industry, American Honda Finance stands as a solid mid-tier player, leveraging brand loyalty to maintain consistent loan growth. Projections suggest a year-over-year increase in financing volume, even as competition from fintech lenders intensifies. In other words, the cost of holding onto these cars is greater than the loss from selling them. American Honda has a “vision” to embed buying insurance into a digital purchase process, Sheehan says. “Is it (in existence) today? No, but it is on our road map,” she says. The latest data indicates that American Honda Finance’s credit profile remains strong, with S&P keeping a favorable rating. Investors are watching macro trends in the car loan market, as rising interest rates could slightly cool demand, but leasing volumes are expected to stay resilient through Q3
