Auto Financial Group

Credit unions are losing ground in auto lending just as members need affordability most. Auto loan balances have declined for 8 straight quarters, and auto loans now make up just 27.8% of credit union loan portfolios, down from 35.2% in 2018.

Meanwhile, members are holding onto vehicles longer. New car prices sit near $50,000, 74% of consumers say a new car is unaffordable, and nearly 1 in 5 buyers now have payments over $1,000.

As members pull back from major purchases, the institutions that offer real affordability solutions will be the ones that stay in the conversation. AFG's residual based financing gives credit unions a way to compete without stretching terms past 72 months: lower monthly payments, shorter effective terms, and a walk-away option at maturity that helps members avoid or exit negative equity.

When members are borrowing differently, the right financing options matter more than ever.

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Big day in Buffalo! AFG's Gene LeClaire and Tim Kern rolled out our Streamline integration within RouteOne at West Herr Auto Group, with John Schulz and Louis Cheminant from . Now dealers can offer AFG's lower payment residual based financing right inside the workflow they already use.

Tim and Gene also took the opportunity to visit with our partner Broadview Federal Credit Union. Ramon from Broadview and Gene showed AFG's Tim Kern where Buffalo's best wings are served!

Record new-car prices are reshaping how consumers shop. According to Catalyst IQ's Q2 2026 State of the Industry Report, buyers are shifting toward used vehicles as a more affordable alternative, and used cars are turning faster than they have in nearly three years.

Affordability, fuel-efficiency, and value are driving purchase decisions. People still need cars. They just need a smarter way to pay for them.

That is where AFG's residual based financing comes in. Our programs offer lower monthly payments on used vehicles up to five years old, often as much as 40% below conventional financing. When buyers are focused on affordability, having a payment-driven solution for both new and pre-owned vehicles keeps the deal moving and keeps the loan in-house.

Market shifts to used vehicles as 'affordable alternative,' with strongest days-to-sell in nearly 3 years Record new-car prices, says Catalyst IQ, have led to greater consumer emphasis on “affordability, fuel-efficiency and value.” And that includes stronger

"Midway through the year, used car prices are running between $1,350 and $3,600 ahead of where they started 2026, according to CARFAX."

It's a good thing that AFG's programs are available not just for new, but also used cars (up to 5 years old)!

Used-car prices jump more than $1,300 in first six months of 2026 CARFAX notes hybrids, EVs lead price spike (2 min. read)

This article highlights data from Edmunds: "The Q2 data perfectly illustrates the stark reality of today’s new-vehicle market: Affordability is such a massive hurdle that buyers are forced to stretch their budgets to the absolute limit just to get into a new vehicle."

At AFG we ask WHY? 🤯
Why 84 month terms? (Nearly 1 in 4 consumers) ♾️ 🗓️
Why monthly payments above $1,000? (1 in 5 consumers) 💸

AFG's programs can help with affordable monthly payments without extending terms.

Average down payments hit lowest share of purchase price since 2020 Average monthly payments, meanwhile, hit a record $777. (3 min. read)

Gene LeClaire hit the road this week once again.
🗺️ Destination: Northland Area Federal Credit Union
🎯 Mission: turn their dealers into AFG program pros

New vehicle prices hit a record $51,974 in June 2026 😱.

Nearly 20% of buyers now pay $1,000+/month 🤯.

Still want to offer your borrowers an affordable vehicle financing option? AFG's residual based financing helps you offer lower monthly payments so members can afford the vehicles they need.

Average U.S. new-vehicle asking price sets high, and keeps edging up New-vehicle prices at U.S. dealerships climbed to $51,974 by late June. Compact sedans saw the steepest gains while convertibles dropped most. Despite higher prices, vehicles are selling faster than before.

Happy 250th birthday, America! Today we celebrate the independence and freedom that built this nation.

At Auto Financial Group, we're proud to serve communities across the country and help people achieve their goals of vehicle ownership. Here's to 250 years of American spirit and to many more.!

Wishing you a safe and joyful Fourth of July.

79% of consumers in the market for a vehicle view cars as a necessity, not a want. These buyers, often earning under $75K and managing fair or poor credit, are stretched thin trying to find affordable options.

This is where residual based financing changes the game. By basing payments on what borrowers actually use rather than the full vehicle price, programs like AFG's Walk-Away Balloon Lending can deliver 25-40% lower monthly payments.

That affordability makes the difference between walking away empty handed and driving home in a reliable vehicle.

Car purchases a 'need' not a 'want' for 79% of independent shoppers, Cox Automotive study finds 56% pay cash for aged vehicles, according to Cox study (4 min. read)