Understanding the Auto Financing Climate in 2025

Posted on December 10, 2025

Auto financing conditions have shifted significantly over the past year, driven by interest rate changes, vehicle price trends, and evolving lender practices. Whether you're buying new or used, understanding today’s financing environment is essential for making a smart, well-informed decision.

Here’s a non-biased look at the key factors shaping the automotive financing market in 2025—and what they mean for Delaware buyers working with dealerships like My Car.

Understanding the Auto Financing Climate in 2025

1. Longer Loan Terms Are Becoming More Common

Due to rising monthly payments, many borrowers have opted for 72- or even 84-month loan terms to lower their monthly burden. While this reduces monthly payments, it increases total interest paid over time.

(Reference: Experian – State of the Automotive Finance Market Q3 2025: https://www.experian.com/automotive/auto-credit-webinar-form)

3. Lenders Are Slightly More Cautious in 2025

Lenders have adopted slightly more conservative approval criteria over the past year. Subprime borrowers may face higher rates or need a co-signer. Still, many buyers in Delaware can secure flexible financing options through dealership partners like My Car.

(Reference: TransUnion – Credit Industry Insights Report: https://newsroom.transunion.com/q2-2025-ciir/)

Lenders Are Slightly More Cautious in 2025

How My Car Helps You Finance with Confidence

At My Car in New Castle County, our finance team works with trusted lending partners to help you secure competitive terms—whether you have strong credit, no credit, or are rebuilding. We offer pre-approvals, trade-in assistance, and guidance every step of the way.

Learn more on our Financing Page

Final Thoughts: Stay Informed and Be Prepared

The auto financing climate continues to evolve, and staying informed helps you make the best decision for your budget. My Car is committed to helping Delaware buyers navigate today’s market with clarity, transparency, and trusted options.