Smart Buy Auto Finance’s Q2 EPS of $0.42 beat consensus by 8%. This earnings beat has renewed confidence among institutional investors, pushing target prices to $10.50. Sign up for free newsletters and get more CNBC delivered to your inbox Auto loan incentives vary based on the economy and the state of the auto loan industry. Car prices have been rising since 2020, when the COVID-19 pandemic disrupted supply chains. High interest rates, fears of inflation and new trade tariffs have created a challenging environment for both car buyers and manufacturers. Smart Buy Auto Finance’s ROE reached 13.6%, reflecting efficient asset utilization, making it well positioned against peers in the auto finance sector whose ROE averages around 10%.