Used cars on finance traders are watching earnings releases

Traders are watching earnings releases from firms specializing in used cars on finance, as Q2 reports predict a 4% increase in loan origination—potentially boosting market valuations in the auto finance segment. You'll want to keep track of a long list of details associated with these tax breaks as we get closer to year-end. The draft for Schedule 1-A gives some specifics. Whether buying new or used, the best interest rates generally go to those with the best credit. According to Experian , the credit reporting agency, the average interest rate for a used-car loan in the first quarter of 2025 was 6.82 percent for someone with the highest credit rating, and 21.58 percent for someone with the lowest credit rating. The difference between those two ratings could reach into the tens of thousands of dollars over the course of a traditional loan. Recent market data shows that consumer credit trends tied to used cars on finance are influencing auto sector stocks, with analysts noting a 3.2% uptick in financing volumes last quarter, driving optimism for related lenders listed on the NASDAQ.