September remittance reports showed weaker credit performance across KBRA’s Prime and Non-Prime U.S. Auto Loan ABS Indices. In our prime index, annualized net losses climbed 5 basis points (bps) MoM to 0.71%, while the percentage of borrowers 60+ days past due ticked up 3 bps to 0.57%. Meanwhile, in our non-prime index, annualized net losses increased 41 bps to 10.54%, while the 60+ day delinquency rate increased to 6.64%, an increase of 25 bps versus the previous month.
On a year-over-year (YoY) basis, prime annualized net losses and 60+ day delinquencies declined 8 bps and 1 bp, respectively, while non-prime annualized net losses and delinquencies increased 44 bps and 3 bps, respectively.
We expect auto loan credit performance to continue following its typical seasonal pattern, weakening through the remainder of the year before improving in Q1 2027 as borrowers receive tax refunds.
Figures 1-14 show performance metrics over the last 10 years and the table below presents…
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