Subprime lending grows faster, while October retail demand softens

AT THE DESK

Subprime lending outpaces the broader market

Auto lending is growing, with subprime borrowers a particularly strong pocket: TransUnion’s report released November 5 puts second-quarter auto originations at 6.8 million, up 2.3% year over year, with subprime originations rising 9.8%. (TransUnion report)

That is a useful signal for the finance office, provided the dates stay attached. This is the company’s third-quarter credit report, but originations are reported one quarter behind to allow for reporting lag; the lending-growth figures describe April through June, not today’s approval conditions. (Report and methodology)

There is another distinction worth keeping on the dashboard: new loans and the outstanding loan book are different measures. TransUnion counted 79.4 million auto-loan accounts in the third quarter, compared with 80.2 million a year earlier, even as originations increased; those figures describe the national market, not Florida alone. (Auto-loan tables)

For your store, use the report as a reason to revisit the lender matrix, not as permission to promise easier approvals. Ask which programs actually fit the customers reaching your desk, where required documentation slows funding, and whether vehicle selection matches realistic payment conversations.

The practical opportunity is a better-prepared handoff between sales and F&I. A national growth rate cannot tell your team which customer will qualify, what a lender will advance, or whether a particular deal will fund.

Where lending grew faster

All auto originations: +2.3%

Subprime originations: +9.8%

0%

10%

MARKET CHECK

October’s extra volume did not mean a faster market

Cox Automotive’s November 5 update estimates October new-vehicle volume rose 2.9% year over year, while the seasonally adjusted annual sales pace fell to 15.5 million, below its earlier 16.1 million forecast. (Cox update) October had one more selling day than a year earlier. (Selling-day comparison)

The more useful detail for the showroom is the mix: fleet sales rose nearly 6%, and Cox attributes much of the shortfall to softer retail demand. (Cox analysis) These are initial national estimates, including fleet, rather than a Florida retail-sales count. (Report scope)

As November gets moving, compare your retail pace with your own traffic and inventory aging. A higher industry unit total can coexist with a tougher month for the customers and vehicles your store actually serves.

OEM WATCH

Cybertruck’s Texas production faces a change

Tesla plans to wind down Cybertruck production at its Texas factory around mid-2027 to make room for more Cybercab production, Reuters reported this morning, citing Elon Musk. (Reuters reporting) He did not specify whether Cybertruck production would move elsewhere or stop altogether. (What remains unclear)

For used-car managers, this belongs on the appraisal watchlist, not in an automatic markdown rule. Keep any change in trade offers tied to current bids and retail demand rather than assuming the announcement establishes a future resale value.

Stellantis puts a dedicated chief over North America

Stellantis named Pablo Di Si chief operating officer for North America and its American brands, effective immediately, in a November 4 announcement. (Stellantis announcement) He takes that regional responsibility from CEO Antonio Filosa; Alexandre Sorel will also succeed Jon Nelson as CEO of Stellantis Financial Services. (Leadership changes)

For dealers, the next useful evidence will be the operating decisions that follow: regional communication, inventory and captive-finance execution. The appointments themselves do not establish new allocations, incentives or lending terms.

SERVICE LANE

A battery-safety resource for the shop

OSHA’s November 2 update introduced a lithium-ion battery safety webpage covering use, storage, recycling and shipping. (OSHA update) Its controls include manufacturer instructions, damaged-battery recognition and emergency planning. (Controls)

Ask the service and parts teams to review the guidance against their actual equipment and procedures. This is not a newly issued battery-specific OSHA standard; the agency says existing standards and the General Duty Clause may apply. (Standards explanation)