Mexico Auto Financing Hits 77.4%, Eyes 80%

Mexico’s automotive financing market reached a record penetration rate of 77.4% of new light-vehicle retail sales in January 2026, with industry stakeholders projecting that credit-backed purchases could exceed 80% by year-end, according to data released by the Asociación Mexicana de Distribuidores de Automotores (AMDA) in collaboration with JATO and Urban Science. 

The report, Financing and Light Vehicle Buyers, January 2026, indicates that 29 of Mexico’s 32 states recorded financing participation rates of 70% or higher in retail vehicle purchases, underscoring the widespread adoption of credit as the primary acquisition method. This continues a multi-year trend in which financing penetration has steadily increased, surpassing what industry participants once considered a ceiling.

“In the past, 70% was considered a record. Now it leads us to think that a new target of up to 80% is achievable, and a third of the states have already exceeded it,” said Eric Ramírez, Latin America regional director, Urban Science.

At the national level, only 14 states fell below the 77.4% average, which sector specialists describe as an optimal level for a market like Mexico. Among the highest-performing states, Aguascalientes recorded a financing rate of 93.8%, followed by Quintana Roo at 90.2% and Baja California at 89.4%. In contrast, Oaxaca (68.4%), Tlaxcala (64.9%), and Guerrero (60.8%) posted the lowest levels of financing participation.

When fleet purchases—typically conducted in cash—are included, the national financing rate declines to 66.1%, reducing the number of states above the national average from 29 to 17. 

“The drivers of financing growth include the facilities offered, promotions, price increases below inflation, and monetary policy that will continue toward lower reference rates,” said Guillermo Rosales, president, AMDA. He pointed to the role of Mexico's Central Bank (Banxico), noting that expectations of stable or gradually declining benchmark interest rates are supporting credit expansion.

Industry data shows that the expansion of financing options is closely tied to intensified competition, particularly following the entry of new brands into the Mexican market. According to JATO, the number of available brands has nearly doubled since 2016, representing an increase of approximately 250%, which has expanded consumer choice and incentivized more flexible financing schemes.

Luis Brizuela, head of sales for Latin America, JATO, said the 80% financing target is attainable under current conditions. The growing presence of new entrants, particularly Chinese automakers, has contributed to more aggressive financing offers through partnerships with financial institutions.

Separate industry estimates suggest that automotive credit penetration may already be near 80% when considering data beyond AMDA’s reporting scope. Ken Charles, digital director, MStar, said that “approximately 80% of car sales in the country are through some type of credit,” noting that not all financial institutions and leasing companies report their figures to AMDA.

Charles added that alliances between Chinese brands and banks such as BBVA and Santander are accelerating financing adoption. “The arrival of new Chinese brands is driving automotive financing, as they form alliances with banks and other financial institutions to commercialize their vehicles,” he said.

The broader credit environment has also evolved, with lenders offering longer repayment terms, zero-interest periods, discounts, and interest rates below 5% in some cases, although average rates typically range between 12% and 14%. Sixty-month loan terms remain the most common across most vehicle segments, except for luxury vehicles, where 36-month terms are preferred.

Segment-level data shows that multipurpose vehicles (SUVs) continue to lead financing growth. In January 2026, financing participation in this segment increased by 1.2% points compared to the same month in 2025, reaching 71.9% when including fleet purchases. Other segments experienced declines, including subcompacts (71.3%, down 0.5%), compacts (61.7%, down 9.1 points), pick-ups (55.3%, down 0.3 points), sports cars (46.9%, down 1.2 points), and luxury vehicles (45.7%, down 2.7 points).

By vehicle type, Chinese-origin brands recorded a financing participation rate of 56.9%, representing a decline of 15.5 percentage points, while hybrid and electric vehicles reached 56.0%, down 2.4 points. Despite these decreases, both categories remain integral to the broader financing landscape as automakers adjust their strategies.

The growth in automotive financing is occurring alongside record vehicle sales. In 2025, Mexico’s new vehicle market reached a historic high of 1.6 million units sold. Rosales said that 2026 could set a new record in both total sales and financing volume. “Starting from the fact that 2025 set a record in light vehicle sales, there could be a new maximum for 2026, and in absolute numbers we expect financing for light vehicle purchases to set a record in volume,” he said.

From January to November 2025, 985,957 vehicles were financed, representing a 5.2% increase compared to the same period in 2024. Total financed units are estimated to have exceeded one million by the end of the year.

“That will consolidate future sales, because a larger credit portfolio contributes to and strengthens repurchase in subsequent years when financing contracts end,” said Ramírez.

The expansion of credit has also reached segments that traditionally relied on cash purchases, including luxury vehicles. Industry participants attribute this shift to rising vehicle prices and tax limitations on deductions. According to Charles, consumers who previously paid cash for high-end vehicles are increasingly opting for financing due to higher upfront costs and reduced fiscal incentives for outright purchases or leasing.

At the same time, financing providers are expanding access to credit among higher-risk borrowers. Independent financial institutions are targeting subprime customers who may not qualify for traditional bank loans. “Customers with negative records in the credit bureau are not considered by banks or captive finance companies, and that is where we come in,” Charles said.

Despite the expansion, challenges remain in credit accessibility. AMDA reported that 61,910 vehicles went unfunded in 2025 because potential buyers did not meet lending criteria, representing approximately MX$32.8 billion in unmet financing demand.

Credit risk indicators have shown some upward movement. Data from Banxico indicates that the delinquency rate for automotive loans issued by commercial banks reached 1.3% in January, unchanged from December and the highest level since 2023.