Major players in the auto and powersports industries continue to adapt to the rapidly changing macroeconomic environment teeming with the effects of tariffs and rising inflation. Where some see opportunity, others see indications of a challenging fiscal year.

As consumers continue to grapple with affordability, which has been further pressured by tariffs, auto refinancers see an opportunity as delinquencies rise. TransUnion’s Q1 2025 Credit Industry Insights Report shows the 60-plus day delinquency rate at 1.38%, the highest first-quarter peak since 2009 during the Great Recession.

As consumers search for ways to save on costs, PenFed Credit Union’s refinance applications are up 75%, according to Chris Kleczynski, vice president and head of auto lending product strategy.

Another tariff shakeup occurred last week after a federal court ruled President Donald Trump’s unilateral levies were unconstitutional, though an appeals court reversed the block within 24 hours.

With a backdrop of tariffs, consumer spending growth slowed, with personal spending up 0.1% in April compared to a 0.7% growth a month prior.

While some parts of the auto industry are experiencing upticks in sales and pricing in this uncertain environment, the powersports market is declining. Towable vehicle values dropped 9.3% year over year in April. Eric Lawrence, Black Book’s principal automotive analyst, said that the motorhome and towable market will likely experience further decline in the coming months.

Boat registrations fell 14% YoY in April, according to BMO Capital Markets, and Bombardier Recreational Products noted a drop in retail sales, both related to tariff shocks and uncertainty.

In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends in affordability and powersports for the week ended May 30.