Depreciation Up, Recoveries Lower, No US Auto ABS Impact
Banking & Financial Services / United States / Tue 17 Apr, 2018
Depreciation on two to six-year old vehicles in the U.S. is forecast at 17% for 2018, up from 13% in 2017, according to Black Book. This is due to rising used supply entering the wholesale markets, driven in part by a 12% jump yoy in lease returns coming due. Fitch Ratings believes this will drive recovery rates in auto asset backed securities (ABS