Captive ABS issuance surpasses $10B in February

Several captive finance companies issued auto asset-backed securitization transactions in February as prime and nonprime issuance increased year over year. BMW Financial Services , Ford Credit , GM Financial , American Honda Finance , Toyota Financial Services and Stellantis Financial Services issued deals during the month, according to Finsight , which monitors securities. Captive issuance totaled more than $10.8 billion through Feb. 25. Other asset-backed securitization (ABS) issuers in February include Carvana , Global Lending Services , Lithia Motors , Pagaya Technologies and Santander Consumer USA , according to Finsight. Meanwhile, Vroom subsidiary United Auto Credit Corp. (UACC) is gearing up to come to market, according to a Feb. 21 15-G filing with the Securities and Exchange Commission . Vroom emerged from bankruptcy in January and the company’s stock was relisted on the Nasdaq Global Market on Feb. 20. The bankruptcy did not impact UACC. Hyundai Capital America is also prepping an issuance backed by prime loans, while World Omni Financial is planning to come to market with a lease ABS deal, according to 15-G filings. Register here for the free Auto Finance News webinar “Funding Strategies: From Warehousing to Private to ABS” at 11 a.m. ET on March 11. Total auto ABS issuance volume from Jan. 1 through Feb. 21 landed at $34.3 billion, down 0.9% YoY, according to data from JPMorgan Securities . Prime issuance totaled $16.1 billion through Feb. 21 while nonprime issuance tallied $9 billion, up 5.6% YoY and 38.5% YoY, respectively. Lease issuance ticked down 12.8% YoY to $8.2 billion. [caption id="attachment_58349348" align="aligncenter" width="1024"] (Chart/Big Wheels)[/caption] Inside the latest issuance Toyota Financial Services (TFS) issued a $1.5 billion lease ABS deal on Feb. 20, according to Finsight. The captive’s U.S. retail lease portfolio stood at $23.9 billion as of Dec. 31, down 8.6% YoY, with 648,786 contracts, according to an S&P Global presale report. Total delinquencies declined 30 basis points (bps) YoY to 1.69% as of Dec. 31, while repossessions climbed 18 bps YoY to 0.58%, according to the presale. Annualized net credit losses rose 19 bps YoY to 0.25% for the nine months ended Dec. 31, remaining below pre-pandemic levels. The collateral mix in the 2025 issuance included a higher volume of shorter-term leases compared with the prior deal. The percentage of original leases with terms less than or equal to 36 months sat at 93.6% in the 2025 deal compared with 84.6% in TFS’ prior lease auto ABS deal in July 2024. Lease terms 37 to 42 months made up 2.2% compared with 8.4% and terms 43 to 48 months represented 42% of the pool compared with 8.4%. Vehicle mix was in line with the July 2024 TFS issuance, with the RAV4 making up the largest percentage of securitization value. Internal combustion engine vehicles made up 69.3% of the mix, followed by hybrid EVs at 25.3% and plug-in hybrids at 5.4%. GM Financial on Feb. 5 also came to market with a $1.7 billion lease ABS transaction and Santander Consumer USA issued a $750 million lease deal on Feb. 11, according to Finsight. Prime deals According to Finsight, several auto lenders issued prime auto ABS transactions in recent weeks: GM Financial issued a $766.4 million deal on Feb. 18; Stellantis Financial Services on Feb. 11 came to the market with an $875 million deal; Ford Credit issued a $1.8 billion prime deal on Feb. 4; BMW Financial Services issued on Feb. 4 a $1.8 billion deal; Lithia Motors on Feb. 4 came to market with a $564 million deal; American Honda Financial issued a $2.4 billion deal on Feb. 4; and M&T Bank issued its first deal of the year on Feb. 4, a $746.2 million prime transaction. Nonprime deals Multiple lenders came to market with auto ABS deals backed by nonprime loans, according to Finsight: Carvana issued a $300 million subprime deal on Feb. 11; Global Lending Services on Feb. 11 came to market with a $666.5 million transaction; and Pagaya on Feb. 6 issued a $300 million deal. Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here .

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