Securitized subprime auto loan losses surged 27% on an annualized basis August, putting the sector on a path to approach post-crisis record loss levels by year’s end, according to Fitch Ratings.

In a report issued Friday, Fitch stated that softened used-car values and higher losses from recent vintage asset-backed pools —primarily from start-up lenders serving lower-tier subprime borrowers –  drove losses to 8.89%, compared to approximately 7% in August 2015. The figure was also a 20% leap from July’s figures, and is expected to “pierce” 10% by year’s end.

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