First Help finances subprime auto pool with $239.7 million
FHF sources almost all its loans—most recently 96% in 2024—from franchise dealers.
Subprime lending
Subprime lender Strike Acceptance floats $107.9 million in auto ABS
The deal is structured as a public securitization, under Rule 144A, and is supported by lending indirectly through more than 1,100 partnerships across the country.
United Auto Credit Securitization raises $324 million on subprime auto ABS
The United Auto 2025-1 series of notes has a more mixed subordination element compared with the previous deal.
Following a boom year, Lendbuzz floats $215.7 million in auto ABS
Lendbuzz sells the notes as it juggles mixed performance results from 2023. Originations and revenues saw huge jumps, but so did operating expenses.
Bridgecrest returns to raise $467.5 million from subprime auto loans
The current levels of credit enhancement are a reduction from levels of 58.0%, 48.7%, 35.9%, 22.5% and 17% on the classes A, B, C, D and E on the BLAST 2024-1 deal.
Westlake Automobile to issue $1.1 billion in auto ABS from subprime
Initial overcollateralization is 11.3%, up from 8.50% of the initial collateral pool balance. Aside from that adjustment, target overcollateralization is 22.45%, compared to 13.00% on Westlake 2023-4 deal.
DRIVE 2024-1 comes to market to sell $1.6 billion in auto ABS
Issuance has been scant since DRIVE 2021-3 closed in November 2021. A lack of comparison deals from recent years makes it more difficult to forecast losses.
Auto ABS in 2024: Watch out for 2022-vintage potholes
COVID-19 largesse enabled subprime borrowers to pay down debt and boost credit scores. Then interest rates rocketed up in 2022, and new subprime auto borrowers felt the pinch.
By
John Hintze
Credit Acceptance prepares to sell $375.1 million from non-prime auto collateral
Classes A, B and C benefit from hard credit enhancement levels of 60.80%, 42.80% and 24.57%, respectively, an increase from the comparison deal.
Santander Drive Auto aims to sell about $1 billion in non-prime auto ABS
Ratings analysts say the A1 through A3 tranches benefit from total hard credit enhancement of 43.00% of the deal's initial principal balance, which includes subordination and a non-declining reserve account of 1.00%.
Carvana returns to raise $238.4 million from a pool of subprime auto loans
The company is coming off of a recent period of performance improvements, with gains in net income, cash and cash equivalents.
Westlake Automobile Receivables prepares to sell $1.2 billion in auto ABS
In one of the deal's positive credit attributes, none of the underlying loans in the collateral have terms longer than 72 months. Such longer-term loans have historically performed worse than shorter-term loans.
Used-car dealer halts plans for subprime auto loan offering
As interest rates rise and delinquencies among borrowers with poor credit scores soar, investors are increasingly scrutinizing the riskiest slices of asset-backed securities sold by some subprime auto lenders. That's forced certain issuers to postpone deals or sweeten terms.
Drivetime is offering $480 million in notes funded by subprime receivables
DriveTime's latest has initial hard credit enhancement that ranges from 55.70% for the class A notes to 15.40% for the class E notes, and the company just bumped up its warehouse commitment.
Lobel Financial comes to market with inaugural deal to raise $178.7 million in ABS
A vast majority of the collateral, a combined 82.73%, have terms of between 49-60 months (58.46%) and 61-72 months (24.27%), while a slight majority of the pool (51.66%) have no credit scores.
American Credit Acceptance plans second ABS this year
The subprime auto lender has a good track record, but there are concerns about used-car prices normalizing, according to KBRA.
What’s driving the boom in auto refinancing
Subprime borrowers whose credit scores have risen since they bought their cars are increasingly looking for a better deal. Credit unions and small banks are seizing the opportunity, often with the help of fintechs.
Santander offers to buy remaining 20% of subprime auto lending arm
The Spanish bank’s U.S. holding company said it will pay a premium to purchase the publicly traded shares in Santander Consumer Holdings. The proposal is subject to the approval of the auto lender’s board of directors.
GCAR prepares another subprime auto securitization
A pool of subprime auto loans, new and used, and approved with a heavily automated, technology driven and multi-step process underpin a $559 million deal.
Carvana marketing bonds in second subprime auto ABS deal of 2021
Carvana Auto Receivables Trust 2021-N2 is the used-car retailer's ninth securitization since 2019, and the third to include a pool exclusively made of non-prime loans.
By
Glen Fest
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