Auto ABS to lean harder on used cars as pandemic squashes sales

By Tom Brown
04 Jan 2021

Auto ABS will have to rely more heavily on loans secured by used cars, as crisis-driven behaviour changes have crushed new car sales but encouraged people to avoid public transport. Captive issuers will therefore make up a smaller proportion of issuance than in the past.

One of the many lifestyle changes brought about by the crisis has been a shift in buying behaviour from new cars to used cars, changing the quantity of collateral available for auto loan securitization, as well as the quality.

New car sales in the UK fell to 1.5m in ...

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