Monthly Overview
Credit performance across KBRA’s Prime and Non-Prime U.S. Auto Loan ABS Indices improved for the second consecutive remittance month. On a month-over-month (MoM) basis, net losses, early-stage (30–59 day) delinquencies, and late-stage (60+ day) delinquencies all declined across both indices. The non-prime index saw MoM decreases of 100 basis points (bps), 64 bps, and 52 bps across these metrics, respectively. Similarly, our prime index also showed improvements across all metrics compared to the prior month. However, both our prime and non-prime indices remain relatively weaker on a year-over-year (YoY) basis, with all credit performance metrics elevated versus March 2024 levels.
Auto loan delinquencies and net losses have continued their expected seasonal trend of improvement in late Q1 and early Q2. This trend typically persists into late Q2, until increased summertime spending begins to place added stress on consumer finances (see Figures 1-8).
Figures 1-14 show…