--- title: "Auto Finance Industry: Companies, KPIs" description: "6 SEC filers are classified under the Standard Industrial Classification codes that describe the auto finance industry." canonical: https://www.getswoopr.com/stocks/industries/financials/auto-finance/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Auto Finance Industry ## Direct Answer 6 SEC filers are classified under the Standard Industrial Classification codes that describe the auto finance industry, and their latest annual reports show $8.7 billion of combined revenue and a median operating margin of -2.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Auto finance companies make loans and leases to vehicle buyers, often subprime or near-prime, and earn interest and fees. Credit losses, used car values and funding costs drive profitability. The first numbers to compare across companies here are originations and receivables, net interest margin and net charge-off rate. ## Key Industry Metrics - **Originations and receivables**: New loans and leases written, and balances outstanding. They follow vehicle sales and credit availability, and growth should be read against losses. - **Net interest margin**: Spread between interest earned and funding cost, relative to receivables. High yields on subprime loans are offset by higher losses and funding costs. - **Net charge-off rate**: Loans written off after recoveries from vehicle sales, as a share of average receivables. It is the key quality measure and rises when used car prices fall. - **Delinquency**: Share of accounts behind on payments. It leads charge-offs, and spikes with unemployment or tightened household budgets. - **Residual value realization on leases**: Whether returned leased vehicles sell for at least the value assumed at signing. It depends on used car prices, and shortfalls become losses. ## Primary Macro Drivers - **Vehicle sales and prices**: Vehicle purchases and prices set how many loans and leases can be written, so sales and price levels move originations and receivables. - **Used car values**: Used vehicle prices set the recovery on repossessions and the value of vehicles at lease end, so they affect charge-offs and residual value realization. - **Funding costs and securitization**: Loans are funded through securitization and credit lines, so funding cost and market access set net interest margin and growth. - **Consumer credit health**: Borrowers' job and income conditions affect repayment, so weaker household finances raise delinquency and net charge-offs. ## Major Risks - **Credit losses in recessions**: Recessions raise unemployment and missed payments, so delinquency and net charge-offs climb, especially among weaker borrowers. Watch delinquency and net charge-off rate. - **Used car price declines**: Lower used car prices raise loss on repossessions and lease-end residual write-downs. Watch used vehicle price indexes and residual value realization. - **Funding market disruption**: If asset-backed markets close or spreads widen, lenders pay more or cut lending. Watch funding cost, securitization spreads and facility terms. - **Regulation of lending practices**: Rules on pricing, collections, add-on products and fair lending add costs and can limit yield. Watch regulatory actions and compliance disclosures. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | High | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | U.S. | ## Auto Finance Filers in the SEC Record 6 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6141, 6153. Their latest fiscal years end in 2025, and together they reported $8.7 billion of revenue. Median revenue growth over the prior year was 32.9%. Median operating margin was -2.5% and median net margin 6.5%. Median total liabilities were 81% of total assets, and 5 of 6 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Affirm Holdings, Inc.](https://www.getswoopr.com/stocks/companies/affirm-holdings-inc/) | $3.2 billion | 38.8% | -2.7% | 1.6% | FY 2025 | | [Atlanticus Holdings Corp](https://www.getswoopr.com/stocks/companies/atlanticus-holdings-corporation/) | $2.0 billion | 50.1% | n/a | 6.1% | FY 2025 | | [Pra Group Inc](https://www.getswoopr.com/stocks/companies/pra-group-inc/) | $1.2 billion | 7.8% | -2.5% | -25.4% | FY 2025 | | [Happen, Inc.](https://www.getswoopr.com/stocks/companies/happen-inc/) | $999 million | 26.9% | n/a | 13.6% | FY 2025 | | [Regional Management Corp.](https://www.getswoopr.com/stocks/companies/regional-management-corp/) | $646 million | 9.7% | n/a | 6.9% | FY 2025 | | [Jefferson Capital, Inc. / De](https://www.getswoopr.com/stocks/companies/jefferson-capital-inc/) | $613 million | 41.5% | 51.6% | 30.6% | FY 2025 | Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Auto Finance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Financials - [Financials sector overview](https://www.getswoopr.com/stocks/industries/financials/) - [Auto Insurance](https://www.getswoopr.com/stocks/industries/financials/auto-insurance/) - [Asset-Based Lending](https://www.getswoopr.com/stocks/industries/financials/asset-based-lending/) - [B2B Payments](https://www.getswoopr.com/stocks/industries/financials/b2b-payments/) - [Asset & Wealth Management](https://www.getswoopr.com/stocks/industries/financials/asset-and-wealth-management/) - [Banking-as-a-Service](https://www.getswoopr.com/stocks/industries/financials/banking-as-a-service/) - [Annuities](https://www.getswoopr.com/stocks/industries/financials/annuities/) - [Banks](https://www.getswoopr.com/stocks/industries/financials/banks/) - [Alternative Asset Managers](https://www.getswoopr.com/stocks/industries/financials/alternative-asset-managers/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Auto Finance industry? Key performance indicators for the Auto Finance industry include: Originations and receivables, Net interest margin, Net charge-off rate, Delinquency, Residual value realization on leases. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Auto Finance industry? The Auto Finance industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Auto Finance industry? The primary risks for Auto Finance companies include: Credit losses in recessions, Used car price declines, Funding market disruption, Regulation of lending practices. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).