FI showroom red and grey logo
MenuMENU
SearchSEARCH

Fitch: U.S. Auto ABS Losses Rise in 3Q; Softness to Continue

The prolonged stressed state of the U.S. consumer and seasonal pressures pushed U.S. auto loan ABS losses and delinquencies higher in the most recent period, according to the latest Auto Loan ABS index results from Fitch Ratings.

by Staff
October 26, 2010
2 min to read


NEW YORK — The prolonged stressed state of the U.S. consumer and seasonal pressures pushed U.S. auto loan ABS losses and delinquencies higher in the most recent period, according to the latest Auto Loan ABS index results from Fitch Ratings.

“Weaker used vehicle values driven by seasonal factors contributed to the worsening auto ABS performance,” said Senior Director Hylton Heard. “However, used-vehicle values remain strong overall and declines were less than typically experienced during this time of the year.”

Ad Loading...

Despite these pressures, auto ABS performance looks to be stable through the end of the year. Prime auto loan ABS annualized net losses (ANL) rose three consecutive months to 0.90 percent through September, correlating with historical patterns in which used-vehicle values typically fall in September.

Prime ANL levels are expected to range from 1 percent to 1.30 percent and hold well below 2009 levels consistent with the continued strong performance of the 2009 and early 2010 collateral vintages.

Prime ANL rose 34 percent quarter-over-quarter through September, but were 46 percent improved over the same period in 2009. The ANL rate of 0.90 percent in September was within range of 0.85 percent-0.94 percent recorded during the same period in 2007.

Prime auto loan ABS delinquencies of 60+ days increased to 0.64 percent in September, up 12.3 percent from August, but notably down over September 2009 by 23.8 percent. Current delinquencies are relatively in line with the 10-year total average for the index of 0.57 percent despite high unemployment figures, low consumer confidence and rising personal bankruptcies.

Subprime 60+ day delinquencies increased in September to 3.89 percent. Though the figure is 25.1 percent higher than in August, it is 21.7 percent lower than a year earlier. Subprime ANL rose in September to 6.75 percent, up 22.5 percent month-over-month, representing a decline of 30.3 percent from the 2009 number. Due to the limited subprime auto ABS issuance in recent periods, monthly subprime index results are more subject to individual transaction volatility.

Ad Loading...

Fitch's outlook for prime and subprime auto loan ABS ratings performance is currently stable/positive for the remainder of 2010. Primary catalysts include positive asset performance from the 2009 and 2010 vintages and support of structural features present in transactions. Through the mid-October, rating upgrades in 2010 have outnumbered 2009 levels by almost 4:1.

Fitch's prime auto loan indices total approximately $39.7 billion issued from 73 transactions, while the subprime indices comprise the performance of 20 transactions totaling $5.9 billion.

More F&I

Photo of notepad and pen next to computer keyboard on desktop
F&IApril 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Read More →
Photo of external keyboard on office deak next to window
F&IApril 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Read More →
Woman in casual clothing sitting at a desk
F&Iby Rick McCormickMarch 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Read More →
Ad Loading...
Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →
REGISTER FOR EFI 2026
F&Iby Kate SpataforaMarch 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

Read More →
Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
Ad Loading...
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Image of two human hands, one holding the word yes, the other the word no
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →