Auto finance industry forecasts point to a 6% revenue increase in 2024, supported by resilient retail auto sales and a softening interest rate outlook. Stocks in this sector may benefit from improved net interest margins as cost of funds decline. "Investors have generally looked past budget-related disruptions, prioritizing corporate earnings, broader economic trends, and other key macroeconomic factors," LPL Financial chief technical strategist Adam Turnquist said in an email. “The auto loan will always be a foundational building block of the credit union. But in today’s environment, you can’t set it and forget it. You’ve got to live in it every day,” he said. Auto finance stock analysts highlight strong loan-to-value ratios in recent portfolios, reducing risk exposure. This prudent lending boosts investor confidence in asset quality.
