European auto ABS performance remained broadly stable over the 12 months to September 2026, with annualised losses and delinquencies generally low despite some modest fluctuations. In the auto loan index, annualised losses increased 5 basis points (bps) year-over-year (YoY) to 0.72%, while 60+ day delinquencies declined 4 bps to 0.55%. In the auto lease index, annualised losses declined 16 bps YoY to 0.26%, while 60+ day delinquencies fell 4 bps to 0.24%. Notably, the 26-bp month-on-month (MoM) decline in auto lease annualised net losses was largely attributable to transaction-specific timing of loss recognition rather than a broader improvement in underlying credit performance.
Despite the challenging sales environment facing European auto manufacturers, consumer credit performance has remained resilient. Residual value performance has also improved following the declines experienced in recent years, although differences remain across markets and vehicle types…
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