Now more than 100 years old, the U.S. auto financing market is an immense area of consumer borrowing. For decades, auto financing was dominated by dealer-originated loans provided by auto manufacturers' financing arms and nonbank financial companies. But in recent years the retail auto market has undergone a demonstrable transformation, due primarily to consumers' preference for online shopping, a trend accelerated by the COVID-19 pandemic. The result has been the advent of 100% digitized, no-contact auto shopping and purchasing, which has served to invite change and risk, and has opened the door for banks and credit unions to seize a larger share of the market. 

This report undertakes a market examination through the lens of Javelin's Digital Lending Maturity Path. This report identifies examples of platforms that have attained what Javelin defines as “Stage 4 maturity,” meaning fully integrated digital lending. The chief enabler in this market of digital lending maturity is the integration between online auto marketplaces and lenders.

Key questions discussed in this report:

• Why should auto lending matter to financial institutions?
• What are the traditional and emerging auto lending models?
• Who are the key players in auto lending?
• What defines digital maturity in auto lending?
   

Companies Mentioned:

Ally, American Credit Acceptance, AutoFi, CapitalOne, CarMax, CarsDirect, Carvana, Chrysler, Federal Reserve, Ford, General Motors, Honda, Navy Federal Credit Union, Nissan, RoadLoans.com, Shift, Toyota, TrueCar, United Auto Credit, Vroom, Westlake