DriveTime Auto Group is pooling a portfolio of loans with higher balances, APRs and loan tenors than any of its three prior deep-subprime auto loan securitizations this year.
The $450 million DT Auto Owner Trust 2019-4 has a pool balance of $519.7 million in used vehicle loans with an average balance of $17,125 per account, average loan coupons of 21.75% and an 84.21% share of loans with terms over 60 months.
No recent DT ABS transaction had exceeded a 77.22% share of extended term loans, according to presale reports from Kroll Bond Rating Agency and S&P Global Ratings.
The loans are backed by five classes of notes, including $211.8 million in Class A notes due May 2023 with preliminary AAA ratings from both agencies. The senior notes receive 60.75% credit enhancement, slightly increased from the 59.45% level of DriveTime’s most recent $430.5 million transaction that priced in July.
S&P and Kroll issued AA ratings for the Class B notes totaling $54.6 million, A ratings for the $77.95 million in Class C notes, BBB/BBB- (S&P/Kroll) ratings for the $70.15 million in Class D notes and BB/BB- for the Class E notes totaling $35.6 million.
The pool of deep subprime borrowers has a weighted average FICO score of 540. That is the lowest mark of the year for a DriveTime issuance.
