...Credit Performance Continues to Normalize: U.S. auto loan and lease credit losses and delinquencies increased in 2H14 as a result of the seasonality typically associated with consumer discretionary spending and slightly lower recovery values on used vehicles. The average net loss rate for lenders covered in this report was 1.06% in 4Q14, up five bps from 4Q13 and up 46 bps from 2Q14. Average 30+ day delinquencies were 3.96%, an increase of seven bps and 69 bps since 4Q13 and 2Q14 respectively, reflecting continued easing of underwriting standards and higher nonprime lending. Fitch notes that both metrics still remain comfortably below pre-crisis levels. ABS Performance within Expectations: Prime auto loans continue to perform well as reflected by Fitch's prime auto loan ABS annualized net loss (ANL) index. Subprime auto-loan performance, however, is deteriorating at a quicker pace and ANL's are at a six-year high. Expectations are for auto loan quality to soften modestly in 2015 but perform...
