...Continued Normalization on the Horizon: U.S. auto loan and lease credit loss rates improved in 1H15 relative to 4Q14 as a result of the seasonality typically associated with consumer discretionary spending. However, year-over-year (YoY) performance was mixed, reflecting the continued easing of underwriting standards, higher nonprime lending and a decline in used car values in recent periods. Loss Rates Remain Historically Low: The average net loss rate for lenders covered in this report increased marginally from 0.60% in 2Q14 to 0.64% in 2Q15 but average 30+ day delinquencies improved slightly from 3.27% to 3.25% during the same period. Average delinquencies for the peer group benefitted from the continued shift in General Motors Financial Co.'s (GMF) assets towards prime lending and absent the change in GMF's portfolio the peer average would have increased slightly. Prime Auto ABS Remains Solid; Subprime Performance Slows: Despite softening in used vehicle prices, prime auto loan ABS continues...
