Retail auto loan and lease ABS performance

Research evidence excerpt

Retail auto loan and lease ABS performance

Accessible version

ABS Alert

Retail auto loan and lease ABS

performance

1H2025 vintage: Prime in line with 2024; subprime weaker 22 July 2026

Early performance indicators show 1H 2025 cumulative net losses (CNL) are performing Securitized Products Strategy

in-line with the 2023-2024 vintages for prime auto loan ABS, and in line with the 2022- United States

2023 vintages but worse than the 2024 vintage for subprime auto loan ABS. The 2021

vintage CNL for both prime and subprime auto loan ABS exceed those of the 2020

Chris Flanagan

vintage (best performing vintages in our dataset for both segments) but remain below FI/MBS/CLO Strategist

the 2022-2025 vintages, which have exhibited differing performance patterns across the BofAS +1 646 855 6119

two segments. The 2020-2021 vintages benefited from tighter underwriting, strong christopher.flanagan@bofa.com

vehicle values, and stimulus support, while the 2022-2023 vintages were pressured by Theresa O'Neill

inflation, higher rates, increased leverage, and looser underwriting. ABSBofASStrategist

+1 646 855 9285

Prime auto loan ABS – mixed trends for credit metrics theresa.oneill@bofa.com

In May (June payment date), the prime auto loan 30+ day delinquency (DQ) rate AlvinABS StrategistFung

decreased 4bp MoM and 3bp YoY to 1.76%. The net credit loss (NCL) rate increased 2bp BofAS

+1 646 855-9091

MoM and 4bp YoY at 0.72%. The one-month recovery rate was 55.3%, down 8.1ppts alvin.fung@bofa.com

YoY.

See Exhibit 137 on page 26 for

Subprime auto loan ABS – mixed trends for credit metrics commonly used acronyms

In May, the subprime auto loan 30+ day DQ rate decreased 32bp MoM but increased

34bp YoY to 15.4%. The NCL rate increased by 20bp MoM and 48bp YoY to 10.1%. The Don’t miss these reports