Monthly Overview
Early early-stage (30-59 day) delinquency rates in KBRA’s Prime and Non-Prime Auto Loan ABS Indices increased 4 basis points (bps) and 3 bps, respectively, month-over-month (MoM), while the late-stage (60+ day) metric fell 3 bps and 9 bps MoM, respectively. Year-over-year (YoY) delinquency metrics were higher across both indices. Meanwhile, annualized net losses in our prime index were flat MoM, but were up 83 bps in our non-prime index. Annualized net losses remain elevated in both indices on a YoY basis, with our prime index up 19 bps and our non-prime index up 9 bps.
As we approach the holiday season, we expect net loss and delinquency rates to climb MoM in both our prime and non-prime indices, but the upward trend should reverse course in Q1 2025 as borrowers begin to receive their tax refunds.
Figures 1-14 show performance metrics over the last five to eight years and the table below presents current index values as well as MoM and YoY changes.
The data shown in this…