New car finance rates in the automotive finance sector

In the automotive finance sector, "new car finance rates" have tracked Treasury yield trends, now aligned at 6.25%. If this stabilizes, publicly traded auto manufacturers could adjust Q3 guidance upward. Technical charts for Ford and GM suggest resilience despite credit tightening. Cox Automotive analyst Erin Keating told the Washington Post that, while lower interest rates would be a huge financial relief for people with car loans, a Fed cut alone won't make that happen. Instead, banks are influenced by multiple forces including a buyer's credit score, bond yields, and how many bad loans are in their portfolio. And loan delinquencies are on an upward trend: FICO reports there has been a 24% increase in people being delinquent in their car loans between 2021 and 2025. Standout benefits: Lenders in the Autopay network approve loan terms as long as 96 months, much longer than most competitors. Higher "new car finance rates" have increased average monthly payments by 12% YoY, dampening transaction volume growth. Automotive retail sector stocks are expected to reflect this slowdown, with consensus EPS estimates trimmed modestly in dealer coverage.