Loss severities in auto deals with high concentrations of trucks and SUVs could soon rise if demand for those vehicles continues weakening, according to Fitch Ratings analysts. In fact, recovery rates on defaulted truck and SUV loans are already starting to decline, thanks to high fuel prices and increased dealer incentives that have conspired to dampen used vehicle prices.

Fitch reports that recent wholesale auction prices were down 8.60% for full-sized pickups and 13.1% for SUVs on a year-over-year-basis, according to data from vehicle auction services provider ADESA, Inc. Fitch added that the Manheim Index reported a 10.1% year-over-year decrease in the full-sized SUV segment as well.

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