Weekly Wrap: CarMax reaps the benefits of lower cost of funds, investment in auto finance ramps

The auto finance industry has in many ways benefited from a combination of lower funding costs and pricier cars, but ancillary service providers are feeling the pinch of rising product costs. CarMax Auto Finance, for one, experienced record-setting volume during the first quarter of fiscal year 2022 as originations jumped 150% YoY to $2.5 billion due to high demand combined with improved interest margin. Still, while interest rates remain historically low, costs for insurance and other ancillary products continue to increase as vehicles become more expensive. In this episode of the Weekly Wrap, Auto Finance News Associate Editor Amanda Harris and Editor Joey Pizzolatto discuss the implications of these developments, along with fresh investments in the auto finance industry.