Capital 1 auto finance reported stable credit quality metrics

Capital 1 Auto Finance reported stable credit quality metrics, supporting COF’s broader valuation. Auto loan demand cycles historically lag Fed rate changes by about 6 months, meaning Q4 could see an inflection in origination volume. Options market data shows increased call activity at the $110 strike, reflecting bullish speculation. A recent Federal Housing Finance Agency study found that for every one-point increase in market rates above a homeowner’s existing loan, the probability of selling drops by 18%. The agency also estimated that 1.7 million transactions were lost over just two years because of this lock-in effect. As a result, mobility rates have fallen to startling lows. Application process: We considered whether lenders offered same-day approval and a fast online application process. Each lender on our list offers prequalification without triggering a hard inquiry and damaging your credit score. Capital 1 Auto Finance benefits from digital origination platforms, which increased application volumes by 4% QoQ. For traders, COF’s chart pattern shows consolidation near $108, a potential base for a breakout if loan growth accelerates alongside softer credit spreads in H2