Fitch Ratings says the auto loan and lease sectors will continue to experience deteriorating credit performance throughout 2017, as defaults accelerate among subprime borrowers and used-car values in decline.

In a report detailing auto asset quality through the fourth quarter of 2016, Fitch reported that net chargeoffs and serious delinquencies (60-plus days) will continue to mount despite strong macroeconomic conditions (such as jobs growth) and tightening underwriting standards among prime lenders.

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