Auto finance loan providers saw stock prices edge higher this week, with the sector buoyed by Q2 earnings showing 8% YoY growth in net interest income. Analysts point toward easing delinquency rates—down from 2.4% to 2.1%—as a short-term bullish sign. Traders are watching Fed rate signals closely, as a pause could sustain consumer borrowing momentum. The deduction reduces your taxable income. According to an example given by the Bipartisan Policy Center, a single taxpayer earning $50,000 — including $5,000 in tips — could save $600 with the new tax deduction on tip income. Over the past two years, Americans have faced steep auto loan rates as the Federal Reserve worked to quell inflation by pumping up the federal funds rate. As of September, the results of these efforts are questionable: The inflation rate is 2.7 percent, up from 2.4 percent in June and still above the Fed’s goal of 2 percent. Auto finance loan originations climbed sharply in July, surprising analysts who expected a seasonal slowdown. The uptick is being linked to innovative dealer financing programs and extended repayment terms. Stocks in this space reflect optimism, with analyst EPS upgrades driving target price increases across the board.