Despite the risks subprime auto loans carry, the market is likely to experience only marginal losses through 2015 according to a recent analyst forecast.
Analysts at Fitch Ratings found in Q1 2015 subprime delinquencies of 60 days and above ticked up 3.56 percent, compared to 2.8 percent in 2014, Automotive News reports. Net losses on an annualized basis also went up in the quarter, from 4.96 percent last year, to 6.58 percent now.
Though those increases have given cause for alarm among analysts and the federal government alike, as well as the ever-increasing volume for subprime loans, Fitch claims the loans are performing as they should. However, the rating agency expects the performance to deteriorate over the course of the year, citing factors including easier lending approvals and lower wholesale prices as potential problems.
[Photo credit: Daniel Oines/Flickr/CC BY 2.0]
The post Fitch: Marginal Losses Projected For Subprime Auto Loans In 2015 appeared first on The Truth About Cars.
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