Drop in ABS issuance contributes to weakened industry performance

The auto finance industry’s overall performance weakened month over month and year over year in November, driven by a decline in auto asset-backed securitization issuance and weakened consumer demand for auto loans. Auto Finance News ’ proprietary Auto Finance Composite Index fell to 116.46 in November, down 11% YoY and 14.3% MoM. The index indicates whether the auto finance market is performing positively or negatively based on a weighted composite of industry datasets. A higher reading correlates with a more positive trend. Auto Finance Composite Index

[caption id="attachment_58347441" align="aligncenter" width="1024"] (Chart/Big Wheels)[/caption] Auto asset-backed securitization volume declined sharply in November to $5.6 million compared with $24 million in October and $16.1 million in November 2023. Auto loan demand was also weaker on a sequential basis but stronger YoY, with the net percentage of banks reporting stronger demand landing at -12.8 in Q4 compared with -10.4 in Q3 and 24.4 in Q4 2023, according to the latest data from the Federal Reserve Bank of St. Louis , which reflects trends in demand and credit access in the third quarter but is named for the quarter ahead. The Seasonally Adjusted Annual Rate improved to 16.5 million units in November, according to the National Automobile Dealers Association . SAAR in October was 16 million and SAAR in November 2023 was 15.3 million units. While sales improved, weaker securitization issuance and demand contributed to an overall decrease in the index. The Big Wheels Data service has been relaunched and reimagined to include an array of valuable industry datasets and dashboards. See BigWheelsData for details.

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