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Auto finance loan stocks are in focus as credit analysts

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Auto finance loan stocks are in focus as credit analysts flagged a notable improvement in borrower FICO score averages in recent originations. This higher quality debt is reportedly reducing charge-off expectations, encouraging funds to increase weightings in the sector. Momentum traders are framing this as a medium-term accumulation phase. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily , plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. CNBC Select compared more than 20 lenders to pick the best for auto financing with weak credit, based on credit requirements, affordability, types of loans offered, customer service and other factors. (Read our methodology to find out how we made our picks.) For equity holders tracking auto finance loan trends, latest data from market watchers indicate that rising EV sales are boosting loan volumes. Financial strategists view this as a diversification advantage for lenders as the vehicle mix shifts. Sector multiples may expand as investors prize this growth vector.