Auto loan access rises in Oct., automakers up the incentives, Trump considers ending EV tax credits

Hey, everyone. Remember when Wall Street hyped Vietnamese EV maker VinFast as the next big thing — valuing it higher than the Big Three combined?

Fast forward — and the brand has fewer than 200 VF8s (the only model it sells) available nationwide. Not nearly enough to establish a strong foothold in the U.S. market…

At this rate — Vinfast’s long-term play in America looks foggy at best.

—CDG

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Each week, I curate the top 5 automotive industry headlines based on the topics CDG readers engaged with the most on social media. Let’s get started.

1. “Financially healthy” auto loan borrowers are in decline

Auto lenders are facing a growing challenge — more borrowers are struggling to keep up with their payments. 

• A new J.D. Power study found that “financially vulnerable” auto loan customers have jumped 11% since 2021, while the “financially healthy” group has dropped by 13%. 

• Alarmingly, just 1% of vulnerable borrowers can cover six months of living expenses.

Why it matters: The ripple effects are already starting to show. Car repossessions jumped 23% in July compared to last year. With interest rates staying high and new cars averaging a hefty $44,467, a lot of borrowers are finding themselves on shaky financial ground.

J.D. Power’s Patrick Roosenberg says lenders need to offer better tools — like flexible payment options and budgeting resources — to cope with market realities. With financial stress mounting, the right tools and strategies could help borrowers stay on track and reduce the risk of widespread defaults.

(Go deeper: 3 min. read)

Despite the financial pressures on consumers — auto credit access increased last month…

2. Auto financing eases in Oct. as lenders get more aggressive

Auto lenders are easing up after a summer of tightening. The Dealertrack All-Loans Index rose 2.2% from Sept. to Oct., the largest month-over-month increase in credit access since March 2022.

• Credit unions led the loosening, while auto-focused finance companies offered the most access compared to pre-pandemic levels. 

• And subprime loans saw a notable boost, with approval rates up 1.2% year-over-year. 

• Meanwhile, certified pre-owned loans saw the biggest loosening, while credit for used car loans eased the least. 

Other trends worked in consumers' favor, including narrowing yield spreads, shorter loan terms, steady down payments, and declining negative equity. Average auto loan rates have also fallen by 124 basis points since March.

Big picture: Lenders are also becoming more aggressive, with some pushing beyond their typical underwriting standards. For dealers, this could mean more approvals, more flexibility, and a stronger close to the year.

(Go deeper: 3 min. read)

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But auto lenders aren’t the only ones getting more aggressive…

3. Automakers up the incentives to close out the year

Incentives surged in Oct. as automakers worked to clear inventory before the year’s end.

By the numbers: According to Cox Auto, incentives accounted for 7.7% of the average transaction price (ATP) for new vehicles — up 6% from Sept. and 60% against 2023. 

• Eight major manufacturers offered incentives exceeding 10% of last month’s ATP.

• Compact SUVs saw standout deals, with prices 30% below the industry average and incentives averaging 9.4% of the segment’s ATP. 

• But electric vehicles (EVs) led the way in incentive spending, climbing to 13.7% of ATP — more than double last year’s figure.

As incentives continue to drive demand, they’ll play a crucial role in hitting year-end sales goals.

(Go deeper: 4 min. read)

One brand that is not hopping on the incentive train is Toyota…

4. Toyota exec. criticizes California-led electric vehicle 'mandates'

COO of Toyota Motor North America, Jack Hollis issued a stark warning about California’s upcoming EV mandates, calling them “impossible” to meet. 

• Set to begin next year under the “Advanced Clean Cars II” program, the mandates require 35% of 2026 model year vehicles to be zero-emission. 

• Hollis says these measures could severely limit consumer choice in several states.

Between the lines: EV and plug-in hybrid sales currently fall very short of the target. Nationally, these vehicles accounted for just 9% of retail sales through Oct., compared to the 35% required. Even in leading states like California, where EV adoption is strongest, sales only hit 27%.

Hollis’ criticism adds weight to a growing industry push for regulatory reassessment.

(Go deeper: 2 min. read)

The targets set by California will be even more difficult to achieve if President-elect Trump makes good on some campaign promises…

5. Trump weighs dialing back EV tax credits 

Trump reportedly plans to end the Biden-era electric vehicle (EV) tax credits, according to Reuters sources. These credits, which offer buyers up to $7,500 for EV purchases, have been a key component of U.S. EV adoption. Trump criticized the program during his campaign, calling for its repeal.

• Interestingly, Tesla is reportedly supportive of the move, despite CEO Elon Musk acknowledging that while losing the credits could hurt Tesla, they will be “devastating” for competing EV makers. 

• Meanwhile, the Alliance for Automotive Innovation has urged Congress to protect the incentives, arguing they are vital for U.S. leadership in the global EV market.

What’s next: EV sales have risen steadily, claiming an 8.9% market share in Q3, but it’s unclear how much of that growth stems from tax credits versus industry-led price cuts and incentives. If the credits are repealed, manufacturers may rely on deeper discounts to maintain demand, potentially impacting profitability.

For consumers, the message is clear — act quickly to take advantage of the tax breaks before they disappear.

(Go deeper: 4 min. read)

Three great opportunities recently hit the CDG Job Board:

• Veros Credit: 9 Regional Sales Managers all across the country.

• Ron Marhofer Auto Family: Nissan Auto Sales near Cuyahoga Falls, OH.

• Dynatron Software: Market President (remote USA).

Looking to hire? Add your roles today—it’s 100% free.

• The top five most dangerous vehicles — study.

• Used EV supply set to skyrocket in 2026 after lease surge.

• GM axes Cadillac model to clear path for Bolt re-launch.

• Mazda dealers see profits spike as sales climb.

• Volkswagen ramps up Rivian investment to $5.8B — if the EV startup delivers.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

🚨 Hey you! Before you go…

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

—CDG

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