In a report released today, Fitch Ratings said that the wholesale vehicle market is exhibiting weakness because of factors such as a weak economy and a soft job market.

According to the Fitch report, loss severity in auto ABS is also under pressure because of lower used vehicle values and loan structure trends that include longer loan terms and higher loan-to-values. Fitch added that the expected health of the wholesale vehicle market serves as a good indicator of future loss severity levels and loss rates in U.S. auto ABS.

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