The loans had a minimum credit score cutoff of 640. The weighted average credit score was 761, compared with 770 in the December sale. Other measures of the July issue compared with December include:

The weighted average APR was 7.96%, compare with 7.4% in the December sale.
The average term was 75 months, compared with 73 months in the December sale.
The weighted-average loan-to-value ratio was 99.8%, compared with 95.7% in the December sale.
Used cars accounted for 55.1% of the loans, compared with 53.5% in the December sale.

S&P said the ratings could be affected by national economic trends. It said it was "closely watching the following developments:"

Income growth, which it said has significantly lagged spending growth since mid-2023, resulting in consumers relying more on credit and savings. "Excess savings are likely depleted for all but the highest-income households, and delinquency rates on credit cards and auto loans now exceed pre-COVID-19 pandemic levels."
Rising costs of ownership. "Lower income segments continue to face vehicle affordability issues due to higher monthly auto loan payments, stemming from rising interest rates and soaring auto insurance premiums, which increased 20.3% year-over-year in May 2024, according to data from the Bureau of Labor Statistics."
Tightening job market. "Unemployment insurance claims remain relatively low, though they have slightly drifted up recently, and the ratio of job openings to unemployed has fallen to near its pre-COVID-19 pandemic level."

Instant Insights /

Space Coast Sells $669 Million in Auto Securities

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