SFA Research Corner: Auto ABS Speeds Ahead, Fueled by Nonprime Loans and Leasing Demand
article by Structured Finance Association
Auto ABS issuance is hitting new heights, reaching $137 billion by the end of Q3—a 17% increase from last year. Nonprime loans and growing leasing demand, particularly for EVs, are fueling the surge as consumers seek more affordable options amid rising vehicle prices. Leasing, now covering nearly half of new EV acquisitions, is helping drive this growth with lower monthly payments and tax incentives making it a preferred choice for many who want to try out EVs.