NEW YORK—Credit union auto lenders may want to prepare for renewed pricing pressure and shifting borrower demand: global auto sales posted one of their strongest months of 2025 in October, even as U.S. volumes softened and average transaction prices continued to climb.
The mixed global picture suggests lenders should watch U.S. credit trends closely while anticipating stronger pull-through in Canada and Latin America.
Despite regional turbulence, global Light Vehicle sales hit their second-strongest pace of the year in October, reaching a 96-million unit annualized rate—just shy of August’s peak. Worldwide volumes rose 3% year-over-year to 8.2 million units, pushing year-to-date sales to 75 million, up 5% from 2024, GlobalData reported.
According to GlobalData, performance varied sharply across key markets:
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United States: Sales dropped 4.7% YoY to 1.27 million units. The daily selling rate fell to 47,200 units, down from 52,100 in September, and the SAAR cooled from 16.4M to 15.3M
The loss of EV tax credits weighed heavily, and OEM incentive pushes failed to lift demand. Average transaction prices climbed to $46,412, up $485 month-over-month and 3% YoY, while incentives slid to $2,835, down nearly $400. For lenders, this combination—higher prices, lower incentives, and weaker EV demand—signals tighter affordability and potential softening in applications - Western Europe: Sales continued to improve, supported by new electrification incentives and slightly stronger consumer confidence
- China: Posted a record October as buyers rushed to purchase before next year’s reduction in NEV tax discounts.
North American neighbors painted a more optimistic picture for lenders:
- Canada: Estimated October sales rose 7.7% YoY to 157,000 units. The selling rate surged to 1.95 million, the best since March, defying expectations of a slowdown despite a soft economy
- Mexico: Sales increased 7.4% YoY to 138,000 units, with the selling rate rising to 1.63 million, positioning the market for a strong year-end