Latest news with #auto loans
Washington Post
an hour ago
- Automotive
- Washington Post
More Americans are car poor as they misjudge trade-in math and pile on debt
On occasion, I'll be revisiting and updating past columns with the most universal financial advice. This column originally ran Oct. 16, 2024. Many Americans are car poor. This week, Edmunds, a car-shopping website, reported that an increasing number of consumers with auto loans had negative equity, meaning they owe more on their vehicle than it's worth — a lot more.
Yahoo
23-07-2025
- Automotive
- Yahoo
How AI is revolutionizing auto dealership financing in 2025
Key takeaways AI is streamlining auto loan approvals and helping dealers close more deals in less time. Platforms like Upstart Showroom and Capital One's Chat Concierge are enhancing both back-end operations and the customer experience. Thanks to AI-powered automation, among other tools, dealerships can finalize sales more quickly. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service Artificial intelligence is changing how we shop for everything, and that now includes auto loans. In 2023, Bankrate covered how AI helps car buyers compare prices and prequalify for financing online. But in 2025, the biggest AI breakthroughs are happening at the dealership level. Lenders and dealers are using AI to speed up approvals, prevent fraud and close deals faster — all while improving the buyer experience. From smarter loan matching tools to AI-powered chatbots, the car financing process is becoming faster, easier and more personalized. Here's how AI is reshaping dealership financing in 2025 and what it means for borrowers. Learn more: Compare today's auto loan rates before visiting the dealership to find the best deals. AI is helping dealers close more deals AI is transforming the behind-the-scenes process of auto financing. In 2025, tools like Upstart's Showroom platform are modernizing how dealers structure loans, which is often referred to as 'desking' deals. These innovations cut the time it takes to secure financing from hours to minutes — reducing customer drop-off and increasing deal volumes for dealers. As a buyer, this means you'll be spending less time in the financing office. If you start shopping with preapproval from a lender, you may be able to quickly compare your options and drive off with a loan that fits your needs and budget without waiting for a lengthy underwriting process. The AI vs. traditional auto loan process Application step Traditional process AI-driven process Loan application Manual, paper-based Digital, pre-filled automatically Identity verification Manual ID checks Real-time AI verification Fraud checks Human review Automated pattern recognition Loan matching Based on FICO score alone Holistic profile matching Approval time Hours to days Minutes AI reduces friction between lenders and dealers AI isn't just making life easier for dealerships. It's also helping lenders improve underwriting efficiency and reduce risk. When a borrower's data is verified and preprocessed by an AI system, lenders receive cleaner applications with fewer errors or missing fields. This can result in faster underwriting decisions, higher loan approval rates and more accurate pricing based on nuanced risk profiles. As a result, both dealers and lenders benefit from fewer delays, better-qualified customers and faster funding. What this means for car buyers AI is reshaping how dealerships and lenders work behind the scenes — but it also affects you as a buyer. With faster approvals, smarter matching and fewer manual steps, you can expect a more efficient and transparent financing process as the technology continues to develop. Here's how AI-driven financing might benefit you. Quicker loan decisions: Some systems offer near-instant approvals. This level of speed isn't uncommon — many lenders already automate their underwriting process — but it can make loan comparison that much more seamless. Better loan matches: AI tools analyze more variables to connect you with the best lender for your finances and budget. Improved accuracy: Income, identity and employment checks are done automatically, which may increase accuracy and reduce clerical errors. Smarter comparisons: Some platforms allow you to view customized offers from multiple lenders without filling out applications. Seamless process: Start online, finish at the dealership — or vice versa. The gap between the online and in-person experience is closing, allowing you to finance your vehicle in the way that best fits your needs. Bridging the online and in-person experience AI is also closing the loop between online car browsing and in-person visits. Consumers can start their journey at home — browsing inventory, chatting with an AI agent or even getting prequalified — and then transition to the dealership already prepared. This hybrid approach benefits both sides. For buyers, you may benefit from shorter dealership visits, fewer surprises when it comes to loan terms and the ability to compare offers without pressure. For dealerships, AI tools allow them to find more prequalified leads and improve customer satisfaction. AI-powered chatbots are changing the customer experience On the customer-facing side, AI tools are making dealership websites more interactive and informative. With average car loan interest rates remaining high and lenders continuing to have low risk tolerance, these tools may help you feel more informed and empowered before you walk into a dealership. Capital One's Chat Concierge, launched in early 2025, is one example of how generative AI is being embedded directly into the buying experience. This intelligent assistant can answer questions about specific vehicles in inventory, including recommending models based on buyer preferences and comparing trims, features and financing offers. An all-in-one experience offered by some AI tools makes the complex task of buying a car that much simpler. Status of AI implementation for 2025 A growing number of dealerships plan to invest in AI to boost efficiency, streamline operations and increase revenue. According to the Fullpath AI Sentiment Report, which surveyed 200 senior decision makers at dealerships in 2024: 95 percent of dealers believe AI technology will be crucial to success moving forward. 80 percent of dealers respond that they are either already using AI, currently deploying AI or planning to deploy AI in 2025. Over eight in 10 dealerships (81%) expect an increase in their AI budgets in 2025 compared to 2024. Dealerships that have already implemented AI initiatives are beginning to see clear benefits. 100 percent of the dealerships using AI experienced an increase in revenue, while no dealership using AI reported a decrease in revenue. Which dealerships are using AI? According to one Portland-based car sales agent, AI at his location is currently limited to answering customer inquiries, not powering financing or operations. Although the technology exists, widespread implementation may take some time. Bottom line AI is no longer just a digital shopping assistant — it's the engine behind a more modern, efficient and customer-first financing experience at dealerships. As platforms like Upstart Showroom and Chat Concierge continue to evolve, expect more speed, personalization and ease when it comes to securing your next auto loan. Sign in to access your portfolio
Yahoo
21-07-2025
- Business
- Yahoo
NY Fed survey finds easier access to auto loans, mortgage refinancing
By Michael S. Derby (Reuters) -U.S. households fared far better when applying for credit for mortgage refinancing or auto loans in June, new figures on credit access from the Federal Reserve Bank of New York show. The bank said Monday that rejected applications for mortgage refinancing dropped to 15% in June, versus 42% in February, which was the worst rejection-rate month in data that goes back to the fall of 2013. The rejection rate for auto loans also retreated, though less dramatically, to 7% in June from February's 14%. Overall credit applications and rejection rates during the last year largely remained steady, the bank said. The findings come from the bank's Survey of Consumer Expectations, which is most closely watched for its monthly readings on inflation expectations and the consumer mood. The bank said prospective borrowers who refrained from seeking credit as they expected their application to be rejected - so-called discouraged borrowers - stood at 7.2% of those surveyed in June, from 8.5% in February. Despite the retreat, the finding for last month came in above June 2024's 5.5%. According to the New York Fed, respondents saw a higher likelihood of facing an unexpected $2,000 expense in June, while the expected ability to cover such an outlay had also risen. Other information from the bank has shown some rising stress for overall consumer-debt levels, although overall, current conditions are pretty healthy. The auto and housing markets have faced high borrowing costs as the Federal Reserve has kept its rate target relatively high to help curb inflation. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
21-07-2025
- Business
- Reuters
NY Fed survey finds easier access to auto loans, mortgage refinancing
July 21 (Reuters) - U.S. households fared far better when applying for credit for mortgage refinancing or auto loans in June, new figures on credit access from the Federal Reserve Bank of New York show. The bank said, opens new tab Monday that rejected applications for mortgage refinancing dropped to 15% in June, versus 42% in February, which was the worst rejection-rate month in data that goes back to the fall of 2013. The rejection rate for auto loans also retreated, though less dramatically, to 7% in June from February's 14%. Overall credit applications and rejection rates during the last year largely remained steady, the bank said. The findings come from the bank's Survey of Consumer Expectations, which is most closely watched for its monthly readings on inflation expectations and the consumer mood. The bank said prospective borrowers who refrained from seeking credit as they expected their application to be rejected - so-called discouraged borrowers - stood at 7.2% of those surveyed in June, from 8.5% in February. Despite the retreat, the finding for last month came in above June 2024's 5.5%. According to the New York Fed, respondents saw a higher likelihood of facing an unexpected $2,000 expense in June, while the expected ability to cover such an outlay had also risen. Other information from the bank has shown some rising stress for overall consumer-debt levels, although overall, current conditions are pretty healthy. The auto and housing markets have faced high borrowing costs as the Federal Reserve has kept its rate target relatively high to help curb inflation.
