The American Financial Services Association (AFSA) has announced that vehicle financing and personal lending by finance companies contribute $145 billion to the U.S. economy and support nearly 840,000 jobs. This announcement was made in an AFSA newsletter, based on two new studies conducted with Oxford Economics.
According to the AFSA, the organization partnered with Oxford Economics to assess how consumer credit drives economic activity and supports financial mobility for millions of households. The reports indicate that vehicle financing and personal lending are crucial in expanding credit access nationwide, thereby bolstering economic activity across all 50 states.
One study found that vehicle-finance providers contributed $125.5 billion to the U.S. Gross Domestic Product (GDP), supported 680,000 full-time jobs, and generated $24.6 billion in tax revenue, including $16.3 billion federal and $8.3 billion state and local taxes. The research also revealed that 30.2 million vehicle loans and leases worth $727 billion were originated nationwide, highlighting the significant economic role of auto finance.
The companion analysis by AFSA and Oxford Economics reported that personal-lending activity by finance companies supported substantial state-level economic benefits, with Texas accounting for 13% of all personal loan value nationwide. The total GDP impact from these activities exceeded $36 billion, with Texas capturing about $21.3 billion and California about $15.3 billion.
Founded in 1916, AFSA is the national trade association representing the U.S. consumer credit industry, including vehicle finance companies, credit card issuers, and personal lenders. It advocates for access to credit and responsible lending while regularly publishing economic impact research through its partnership with Oxford Economics.