This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks A solid niche in the fragmented used vehicle sales market. High leverage, at well over 10x debt to adjusted total equity. Concentration in nonprime auto lending. A significantly encumbered balance sheet and a reliance on nonprime asset-backed securities markets. Private equity ownership, which could lead to large dividends. Higher unemployment will likely have an exacerbated effect on lower-income workers, who are more likely to use consumer lending products. This could lead to more loan modifications and higher delinquencies. Used car prices are rising because of tight auto supply stemming from the Trump administration?s
