Auto Asset Quality to Weaken Further, Fitch Says
Auto loan and lease credit performance is expected to continue to deteriorate in 2017, according to a new U.S. auto asset quality review by Fitch Ratings.
- Says credit losses weakened in 2H 2016, consistent with seasonal trends; credit performance vs 2H 2015 also deteriorated
- “Subprime credit losses are accelerating faster than the prime segment, and this trend is likely to continue as a result of looser underwriting standards by lenders in recent years,” Fitch Ratings director Michael Taiano says in a note
- Says banks starting to lose market share to captive auto finance companies, credit unions as they tighten underwriting standards in response to deteriorating used vehicle prices, weaker subprime credit performance