Relevant:
- Subprime Auto Delinquency Is Near Crisis Levels at Non-Bank Lenders
- Banks Tighten Auto Lending as More Borrowers Fall Into Default
- Consumers Skip More High-Rate Auto Payments Than During Crisis
- New Overdue Home Loans Swamp Effort to Fix Defaults
- Subprime Flashback: Early Defaults Are a Warning Sign for Auto Sales
2017-03-11 — bloomberg.com
Losses for the loans, annualized, were 9.1 percent in January from 8.5 percent in December and 7.9 percent in the first month of last year, S&P data released on Thursday show, based on car loans bundled into bonds. The rate is the worst since January 2010 and is largely driven by worsening recoveries after borrowers default, S&P said.
...
Longer-term loans to finance the purchase of new and used-cars, sometimes stretched to as many as 84 months, have also hurt lender recoveries by putting borrowers underwater faster, and leaving lenders with an asset worth far less after repossession.
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