Used car finance rate auto credit-related stocks are being

Auto credit-related stocks are being repriced as the "used car finance rate" fuels stronger net interest margins. Analysts favor companies with diversified loan books, while cautioning about macro headwinds that could disrupt demand in lower-credit tiers of the market. With new cars averaging nearly $50,000, according to Kelley Blue Book, buyers are turning to used cars to avoid taking out big loans. Because having a 500 credit score represents a significant risk to the lender, it will likely charge you a higher interest rate for the loan than if you had a better score. If possible, improve your credit before applying for a loan to get more favorable terms. Sustained high rates could stabilize finance firms’ ROA metrics, with chart patterns suggesting accumulation in certain mid-cap lenders.