While overall Capital One sent a mixed message when it released loan performance data earlier today, for the auto finance industry, the takeaway was clear. The worst may be behind the industry.
Charge-offs in Cap One’s auto loan portfolio dropped to 4.08% in March, from 4.44% in February, according to the company. This may stand as the first positive sign for the industry as it looks to emerge from the recession.
Meanwhile, card losses at Cap One continue to mount. Charge-offs in its credit card portfolio hit 9.33% in March, from 8.06% in February.
