October remittance reports showed higher net losses but generally steady delinquencies across securitized prime and non-prime auto loan pools during the September collection period. KBRA’s prime and non-prime annualized net losses arrived at 0.48% and 9.14%, respectively, rising 4 basis points (bps) month-over-month (MoM) and 10 bps year-over-year (YoY) in our prime index, and 18 bps MoM and 189 bps YoY in our non-prime index. Meanwhile, late-stage delinquency rates (60+ days) moved less than 4 bps (+/-) MoM in both indices but increased 10 bps and 59 bps YoY in the prime and non-prime indices, respectively (see Figure 1 and Figure 2).
Following the downward trend in used vehicle prices since April,1 recovery rates fell across both indices, down 454 bps MoM and 20 bps YoY to 51.78% in the prime index, and 134 bps MoM and 892 bps YoY to 36.86% in the non-prime index. We expect vehicle prices to continue their downward trend, despite the United Auto…