I hope AutoFinanceNews.net members saw last week's Fitch Ratings report on auto loan credit quality that all but bestowed a golden hue on the asset class. I couldn't find a negative word about credit quality in the entire briefing.

A salient excerpt:

Defying seasonal pressures, auto asset quality showed year-over-year improvement in 4Q10 for most U.S. issuers due to a continuation of positive factors, including tighter underwriting standards in more recent vintages and strong recoveries on defaulted and repossessed vehicles due to strong wholesale values in the used car market. Looking back, credit loss rates for most issuers peaked sometime in 4Q08 and loss rates have been trending positively since then. On average, credit metrics are close to the benign pre-crisis levels, and origination volumes are gradually rebounding as underwriters gain more confidence with the general uptick in macroeconomic indicators. ...

Operating performance in the auto finance space was strong in 2010, as earnings benefited from reduced loan loss provisions, reserve releases and lower depreciation expense on leased vehicles due to strong used car values, and improved credit performance.