UACC originations decline 19.5%

Vroom subsidiary United Auto Credit Corp. ’s originations declined in the fourth quarter while liquidity improved as the company looked to capitalize on its remaining assets. United Auto Credit (UACC)’s originations totaled $91 million in Q4, down 19.5% year over year and 9% quarter over quarter, according to Vroom’s earnings presentation published today. For the full year, origination volume tallied $436 million, up 4.1% YoY. UACC had a serviced portfolio of $1.2 billion as of Q4, down 7.4% YoY and 4.2% QoQ. The decline in the portfolio was due to the “amortization of [the] Vroom portfolio, offset by indirect origination volume growth,” according to the presentation. UACC accounts totaled 78,054 as of Q4 compared with 81,149 a year earlier and 80,049 in Q3 2024, according to the presentation. UACC and analytics company CarStory remained as subsidiaries of Vroom following the company’s shedding of its e-commerce business and subsequent bankruptcy filing last year. Vroom emerged from bankruptcy in January and its stock was relisted last month. “The last year was pivotal,” Vroom Chief Executive Tom Shortt said in a release today. “We enter 2025 having completed the [business] recapitalization and with continued focus on executing our Long-Term Strategic Plan .” Vroom did not host an earnings call today. Strengthening liquidity UACC had $29.3 million in cash and cash equivalents and $28.2 million in excess liquidity available under its warehouse lines as of the end of Q4. UACC’s total warehouse capacity was $825 million, with outstanding borrowings at $360 million and remaining capacity at $465 million. UACC issued a $324 million subprime auto asset-backed securitization transaction on March 3, according to Vroom. The deal marks the lender’s first of the year and 17th overall. In Q1 2025, UACC extended a $200 million warehouse agreement with an unnamed lender into 2026 and is “in negotiations to extend additional facilities in second quarter 2025,” according to the presentation. The company also secured a $25 million line of credit this month. Delinquencies rise Total delinquencies across UACC’s managed portfolio rose 282 basis points (bps) YoY to 12.89% as of Dec. 31, 2024, according to an S&P Global presale report of UACC’s latest securitization. Delinquencies of 31 to 60 days landed at 8.01%, up 163 bps YoY, while 61- to 90-day delinquencies sat at 3.10%, up 74 bps YoY. Net charge-offs as a percentage of outstandings in 2024 declined 42 bps YoY to 13.17%, according to the presale report. Shares of Vroom [Nasdaq: VRM] were trading at $24.31 at market close today, down 2.3% compared with 10:28 a.m. ET. 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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