Wednesday, November 5, 2014

Auto Asset Backed Securities Showing Some Strain


Delinquencies and losses climbed for U.S. auto asset-backed securities during the third quarter, following typical fall season patterns, with the slowdown likely to continue this quarter and into next year, according to Fitch Ratings in its latest quarterly auto ABS index.

Though still within Fitch's initial expectations, subprime auto ABS losses reached levels not seen in four years last month. Additionally, used vehicle values have fallen for five straight months.

Lease residuals are also seeing some pressure. Auto lease ABS residual values losses rose in the third quarter, with some platforms now seeing losses for the first time in several years.

Fitch's RV Index declined to a 2.1 percent gain through the third quarter, down from 8.4 percent through the second quarter.

Did you find this post useful? Please post a link on your blog or website and SHARE it on Facebook so others can find it as well.

As always - We want your questions, so please feel free to ask us anything because the team at CARS really cares about your success and we're committed to you by not only getting results, but to make learning fun and exciting. You can email us at repocarsinmichigan@gmail.com

"Make Money & Have Fun" - Jason Pries (follow on Twitter)

Other Information

Santander Originations Third Quarter

Santander Consumer USA Holdings Inc. (SCUSA) announced net income for third quarter 2014 of $191.4 million.

In the third quarter, total origination's were $7.4 billion, including more than $3 billion in Chrysler retail loans, more than $1.2 billion in Chrysler leases originated for its portfolio, and approximately $604 million in Chrysler lease and dealer loan origination's facilitated for an affiliate. Other origination's, including other auto and unsecured consumer loans, totaled $2.5 billion for the quarter. Total origination growth was 13 percent for the third quarter of 2014 as compared to 2013.

Finance receivables, loans and leases, net, increased 3 percent to $27.3 billion at Sept. 30, from $26.5 billion at June 30, and increased 17 percent from $23.4 billion at Dec. 31, 2013, driven by Chrysler Capital. During the quarter, SCUSA sold $2.4 billion of retail installment contracts with a higher average APR than the $739 million sold in third quarter 2013 and the $1.4 billion sold in the second quarter of 2014, due to the sale of more near-prime loans through the CCART platform as compared to the flow agreements which comprised all sales during the second quarter 2014 and the third quarter 2013. SCUSA's retained portfolio average APR as of the end of the third quarter for retail installment contracts was 16.3 percent, in line with the 16.3 percent as of the end of the fourth quarter 2013.

Did you find this post useful? Please post a link on your blog or website and SHARE it on Facebook so others can find it as well.

As always - We want your questions, so please feel free to ask us anything because the team at CARS really cares about your success and we're committed to you by not only getting results, but to make learning fun and exciting. You can email us at repocarsinmichigan@gmail.com

"Make Money & Have Fun" - Jason Pries (follow on Twitter)

Other Information