Vehicle Financing Adds $125.5 Billion to U.S. GDP, Finance Companies' Personal Lending Contributes $20.4 Billion, According to Oxford Economics Research for AFSA

Texas and California see largest economic impacts from vehicle financing and personal lending – $21.3 billion and $15.3 billion, respectively

WASHINGTON, Oct. 27, 2025 /PRNewswire/ -- New American Financial Services Association (AFSA) research, undertaken with Oxford Economics, shows that vehicle financing and personal lending by finance companies together add more than $145 billion annually to the U.S. economy and support nearly 840,000 jobs nationwide.

The two studies — The Economic Impact of Vehicle Financing in the U.S. and The Economic Impact of Personal Lending by Finance Companies — highlight how responsible consumer lending drives access to credit, supports household mobility, and fuels economic growth and activity across all 50 states.

Vehicle Financing: A $125.5 Billion Boost to GDP

AFSA and Oxford Economics found that vehicle-finance providers contributed $125.5 billion to U.S. GDP in 2023, equivalent to $17 for every $100 in loans originated. The sector supported about 680,000 full-time equivalent jobs and generated $24.6 billion in tax revenue — including $16.3 billion federally and $8.3 billion to states and localities.

Financial institutions originated 30.2 million vehicle loans and leases worth $727 billion, helping millions of households purchase cars essential for work and family life.

"The spillover effect of vehicle sales and financing is significant across the United States and extends well beyond the vehicle manufacturers, dealers and lenders," said Tim Gill, Chief Economist for AFSA. "At every level of the vehicle, dealer and lender supply chain, there are communities, businesses large and small and consumers who both directly and indirectly benefit economically."

Personal Lending: Providing Consumers with Access to Credit

In its companion report, AFSA found that personal lending to consumers contributed $20.4 billion to U.S. GDP in 2023, supported 159,000 jobs, and generated $4.9 billion in tax revenue.

Finance companies originated 12.5 million personal loans worth $62 billion, many serving lower-income and subprime borrowers who often lack access to traditional bank credit.

"These findings reaffirm that responsible consumer lending doesn't just help individuals access the credit they need in communities across America – it powers the broader economy with more than $145 Billion impact annually and support 840,000 jobs," said Celia Winslow, President and CEO of AFSA. "From putting families on the road to helping consumers meet life's everyday expenses, our members keep the American economy moving."

Texas and California See Largest Economic Impacts

Across both studies, Texas and California experienced the greatest total economic benefits from vehicle financing and personal lending activity. Combined, these two states captured more than $36 billion in GDP impact –$21.3 billion in Texas and $15.3 billion in California.

AFSA also found that 40 percent of the total value of vehicle financing was issued in Texas, California, Florida, New York, and Georgia. On a per-capita basis, the states with the highest amount of vehicle loans were Texas, Florida, and New Hampshire.

Regarding personal lending, 13 percent of the value of personal loans provided by finance companies across all 50 states was issued in Texas.

The report attributes these concentrations to strong consumer demand, large vehicle markets, and well-developed financial services industries within these states.

About AFSA:
Founded in 1916, the American Financial Services Association (AFSA) is the primary trade association for the consumer credit industry, protecting access to credit and consumer choice. AFSA provides the consumer credit industry and the consumers it serves with a voice in Washington, D.C. and state capitols across the United States, and to the media and investment community. It also provides policy advice and issues management at both the federal and state level. To learn more about AFSA, go to https://afsaonline.org/.

To read the full studies, visit: HERE for The Economic Impact of Vehicle Finance; HERE for The Economic Impact of Personal Lending by Finance Companies

SOURCE American Financial Services Association