Speciality subprime auto issuers face stark choice

auto loans
By Matthew Scully
04 Jun 2014

US non-bank subprime auto lenders are continuing to grow at a fast rate, with underwriting quality moving downwards. Rising delinquencies and net losses are still within accounted-for ranges, but credit analysts are warning some issuers the face a choice between profitability and possible future downgrades.

Subprime auto issuance this year is just above levels seen in 2013, with $8.4bn of supply this year to date. Speciality lenders have experienced the largest overall growth in the sector with nearly 40% growth over the last year, according to data from Experian.

Speciality auto lenders Drive ...

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