Auto Loan Indices Show ‘Mixed’ Performance

By Staff Writer November 17, 2022

October remittance reports showed a second straight month of mixed credit performance across securitized prime and non-prime auto loan pools. Annualized net losses edged higher, but delinquency rates improved in KBRA’s prime and non-prime auto loan indices on a month-over-month (MoM) basis. Annualized net losses in KBRA’s prime index moved 3 basis points (bps) higher MoM and 20 bps year-over-year (YoY) to 0.34%, while prime delinquency rates (60+ day) improved 1 bp MoM but rose 10 bps YoY, to 0.38%. Meanwhile, annualized net losses in KBRA’s non-prime index increased 45 bps MoM and 300 bps YoY to 7.16%, while the percentage of non-prime borrowers 60+ days past due came in at 5.22%, down 5 bps MoM but up 128 bps YoY.

Recovery rates have continued to decrease largely due to the decline in used vehicle values throughout 2022, which has placed some upward pressure on loss rates. Recoveries fell 10.7 percentage points (ppts) and 8.4 ppts YoY to 53.4% and 46.8% in KBRA’s prime and non-prime indices, respectively. However, recoveries remain within historical levels.

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Last modified on Wednesday, 23 November 2022 15:30