Auto lending preferences and consumer purchasing behaviors are continuously changing in response to economic pressures and fraud risks. That is why lenders and dealers need to understand the emerging auto industry trends shaping the auto industry and be proactive with tackling synthetic identity fraud. 

Auto dealers can improve the customer experience by better identifying high-quality buyers, and consumers may be more willing to engage with dealerships if the buying experience is enhanced. Auto lenders who know which lender types are more vulnerable to fraud and delinquencies, as well as the lender types that are selected across generations, can proactively mitigate risks and foster long-term trust with consumers. 

So far in 2025, consumer finances indicate that debt for auto loans and leases has risen by almost 15% over the past decade, making it the fastest-growing area of consumer debt that is not mortgage related, surpassing even student loans and credit card debt. Rising consumer stress can also be seen with the upsurge in delinquencies that are 60+ days past due, especially with the Gen Z population. 

As economic strain intensifies for each generation, fewer consumers are purchasing vehicles. This can also be linked to growing interest rates and higher car prices, which have both risen by at least 34% in the last eight years. 

Fraud is another major concern for the auto industry as synthetic identities (Syn ID) have increased by almost 60% each year since 2020. In fact, the past four years have already seen a 60% increase in auto loan credit applications with Syn ID risks. These loans and leases with a Syn ID risk have a higher chance of becoming delinquent. 

Being able to tackle rising delinquencies and effectively reduce identity fraud can help car lenders and dealers prevent further losses while providing a better customer experience that can attract more buyers.