Despite the rise in used vehicle values for the seventh straight month in July, this did not stop prime losses from rising to 20% above the 2008 level, Fitch Ratings said in a report.
The used vehicle values are up above 7% in the past year through July. This has benefited auto ABS performance by constraining loss severity levels. The used vehicle values have showed gains for the majority of vehicle segments in almost every month this year, Fitch said. Neverthe less, the rating agency expects loss levels to rise in the latter half of 2009, which is actually consistent with historic patterns in this time of the year.